How Cash Flow from Cars Fuels Your Retirement

So let's jump back in the chat box. First question I have for everybody here is, how many cars have you owned up to this point in time in your life? So go ahead. I want you to put a number in the chat box for how many cars you have owned up to this point in time.

We're getting 5, 20, 10, 5, 15, 4.

It ranges from 5 to 20, 25.

Sure. 5 to 25 for. For car purchases.

Yeah. Okay. I.

Looks like my Zoom zipped out for a little bit. So it sounds like we're all having some fun with the Zoom today. A little bit, yeah. So between 5 and 25 for car purchases. Okay, that's great. Very, very helpful. So I'm Roman. I'll have you kind of think about some of those numbers, maybe capture a couple notes as we go. We're going to do a callback to that a little bit later. Now let's take that one step further, and let's think about the price tag. So if you were to consider now of all those cars, whether it was 5 or 25, what would you say, ballpark is the average price of those cars? You don't have to overthink it too much. But what's the number that kind of sticks for you as far as what. What we're paying for those cars today. So let's see what kind of numbers we get in the chat box for that.

So far, no answers.

Lots of answers coming in. 20 to 55. Some people have them under certain numbers, but there's lots of 20 to $40,000 numbers.

About 20 to 40,000, roughly, Dan, is what you're saying there?

Yep, lots of that.

Okay.

Lots of.

Lots of variables, though.

Like.

Like depends if you bought 20 vehicles.

You know, when I started, I was paying, you know, 12, 15,000 for a.

Vehicle, but now I pay much more.

Yeah, absolutely. And of course, you know, inflation's going to kick in there, so I'm just really looking to get a good gauge of everyone in the room. What's interesting is that we're going to see a wide range. What's cool is that everyone that's participating today is that we're going to recognize and see that the numbers that everyone is producing are often. Although we're going to have a bit of an average, we're going to have a target zone, the numbers are kind of all over the map. And so what I want everyone to recognize as you're seeing these responses in the chat box is just how different vehicle purchasing is over the different areas of their country. The Nation, North America, a time horizon. So it's important to recognize that. So this is real life. This is what you guys are telling us. Now. We have people that we meet with on a regular basis and we see these kind of numbers all the time. And.

We are also seeing the truth about that as we go through today. So, by the way, great participation. Give everybody like a high five. I love what I'm seeing here. That's fantastic. So now let's, let's move on to our next question. And we talked about you. Now, maybe you already covered your spouse's car number in your total, in which case that's fine. But if you haven't already, think about your spouse. How many vehicles have they purchased up to this point in time in their life? You might not know the number, but guess. Give us an approximation of how many vehicles they've purchased.

Five, two included.

0. 4 2. Definitely. Spouses purchase less vehicles or the numbers could have been included already.

Could have been included already. Okay.

Yep.

Okay. So, and so what, what would you say if you were to eyeball it, you know, Roman, what are we looking at? Maybe as an average there so far?

I would say 5.

5.

Okay.

So we had, I think between 5 and 25 for our main, our main folks on the call, and we're adding about five for spouses. And I. My zoom might cut out again. I know it shows not responding. So if I disappear all of a sudden, I'll magically reappear in a few moments, I'm sure.

But.

Hey, there we go. I magically reappeared just like I said. Roman, isn't that fantastic? It is.

It's gonna, it's gonna be one of those, one of those interesting and amazing sessions and I'm so excited. Okay, so. So again, we got a lot of good variability in what's happening with the different amount of vehicle purchases. And I think it's important that I want, as we're asking these questions, I want you to really start thinking about and adding up the total of these car purchases in your own life. What is this starting to add up to? The vehicles you've purchased, the vehicles your spouse have purchased. What is that building up in your life? Because now we've been looking at the past, okay. We're, we're focusing on what's already happened. Let's look out into the future. Now consider, you know, I've got a picture of an abacus here. So we're going to do some third grade arithmetic, you know, hard math. But start thinking about how many vehicles you and your spouse are going to need moving forward. I don't know what anyone's age is at today. We have people of all different ages on the call. So consider how many vehicles do you think you're really going to need moving forward for you and your spouse? Let's get some responses in the chat box on that.

So far. 312 more. 5. 2.

5.

5 for myself. I. I'm pretty sure I will need 10 to 15 just for myself and my wife.

7. 10. So I would say maybe 10 is a, is a kind of average.

So based based on what you see coming up, you know, roughly, we got about 10 for future vehicle purchases.

Yeah.

Okay. So. So we had 5 to 25 for the people on the call, then we had 5 for spouses, roughly. And then we've got 10 future. So I'm going to take the, the 5 to 25 range and I think I'm going that at about 10. We'll go on the lower end of that range. So we've got 10 and five on the pass. That's 15 for the household. And then we've got about 10 into the future for the household. So if we add all that up as a household. Now, just kind of looking at the numbers everyone's given us today, we're sitting in a position of about 25 vehicles. Am I on track Roman.

10? Yeah, about 25 on average. Y. Okay.

So as a household, we're think we're looking at somewhere, at least based on the folks on this call, that we're looking at about 25 vehicle purchases over a lifespan for a household. Okay. Now obviously we're gonna have people on the low end of that and on the high end of that. But just given the numbers that we've covered, I think that is. Well, to a large degree, I think that's a much more surprising number than most people would anticipate. So just let me know. I'm just curious if you were to think about the responses that we've seen. If we were to summarize what's happened so far in our call. Who's surprised by the amount of vehicle purchases that are happening in the Canadian household these, these days? Go ahead and type a type of why if you're surprised and an end if you're not surprised.

Yeah, we're getting not surprised. A lot of no's, but some people say that they are surprised. Yes. So I would say 60%. No.

Okay.

40%. Yes. Okay.

So the, the 25 vehicle purchases in the household doesn't seem like a big number. Okay, that's good to know. I'm glad to get everyone to get the feedback on that. So now here's a picture of, of my family here at our annual family banking meeting that we hosted last year. So now we want to start thinking about the kids. What does this look like for our families? Of course, we don't know who all has kids on here, so let's start with that. There's going to be folks who probably don't have kids on the call, but let's type a Y in if you do have kids. So if you have kids or even grandkids, let's put a Y in there, let us know. So we have an idea of our family dynamic based on who's attending the session tonight. And maybe someone who's keeping an eye on the YouTube chat can let us know what's going on over there too.

Yeah, majority of the audience of the listeners have kids today, Richard. Okay.

Okay, perfect. So, by the way, everyone, legit, like, high five. I'm super pumped. You guys are doing amazing at your engagement. This is super helpful. We want to keep things as interactive as possible. So. So the next question on that is, let's go under 16, over 16. So if you have kids, you said yes. Do you have kids that are under, driving age or over driving age. So type an under or an over.

You can also do both if, if.

You have, if you, if you have both. Yeah, good, good point, Roman, because you, because you're in that zone. So good point. Yeah, yeah, I didn't, I didn't.

Under. Both. Under. Both over. 16. No kids, both over, under, over. So we're all over the, the board.

It's all over the map. Okay, so what that tells me is we have some folks with, you know, our families who have accelerated a little bit in time. They're moving on to different stages of life. And we have some folks still with much younger kids at home. So that's good to understand. So the people who have much younger kids, this will be really relevant to you as you think about where you're at in the journey. And for those of you with older kids who are already buying and spending money on cars, this will be very eye openening, I think, for you when you think about the financial energy that's already transacted in the family line. Okay? So I want you to be aware of that as we go through our session today. All right, so let's talk a little bit about money flow. Now. We have this thing in Canada. Not every, you know, Alberta, they don't talk about. You get a power bill, you don't just get a hydro bill. But in B.C. and many parts of Ontario, a lot of Canada, they think, they say hydro and that's your power bill. That's because they've harnessed the power of water. The movement of water turn turning a turbine generating power and the. So the power of water, the flow of water is something that is a tremendous amount of harnessed power. Well, water's got to flow and money's got to flow. And that flow, that energy is called cash flow. And that cash flow is what we're focusing on today. How is that cash flow and the energy of that cash flow disappearing in our life? And where are parts that we can start to retain and contain it and harness it for our family's energy potential? Now, I'm going to read a little something from page 11 of Nelson's book here. He says banking is the most important business in the world. Without it, all businesses come to a screeching halt. Whenever a business transaction takes place. Money must flow from one party to another. Money must flow from one party to another in a relatively short period of time. Otherwise nothing takes place. That is what banking is all about, folks. That flow of money must come from a supply source. So I had that picture of the, the waterfall that's, that's this supply source of water and it's dropping from one supply source into another. A different pool. It's all connected, but it's two separate pools. As an example of, of the visual that we're looking at here, that's the essence of what the banking business is all about. Someone or some organization has control over a pool of money that can and must flow at a cost to meet some need. You know, Roman and I were on a call earlier today and he ment idea of a dam. You know, think about the Hoover Dam, this massive giant, you know, construction project, this huge dam. Well, what they've done is they've contained a reservoir of energy and they use that energy and they, they control the valves and the, how they trickle and flow that energy outward back to the city towards like Las Vegas and what it supports. That's the power of what that dam is and that ability to have the control. Okay, there's only one pool of money in the world. The fact that it is managed by any number of institutions, including banks, insurance companies, corporations and individuals and various currencies and countries is incidental. So this is really the fundamental component of what banking and the banking business is all about. Becoming your own Banker is trying to harness that potential. So with that in mind, we think about all these car purchases. Who's going to get all that money? Well, if you add up all the car purchases you already talked about today, and I'll just ask this question. Who here has a bank account balance right now, today with the amount of all the car purchases that you've made for you and your spouse? And I'm pretty sure the answer is going to be no. Some people will have bank accounts that might be equivalent to that, which would be great, but most people aren't going to have all that money set aside. Our goal is to figure out how we can contain some of that. Okay, that's our focus. So, couple of interesting stats I found in this Forbes article. This was just earlier, maybe a couple of days ago, might have been on Friday. I found this. 92% of households in the United States have at least one registered vehicle. Now, the United States is roughly 10 times bigger than the country of Canada. Of course we support people in both US And Canada here in Canada with the Senate Financial and United States with our, our company Life Eva. And we hope we help educate people all over North America on this concept. That 92%, that is a ridiculously high number. That means it's pretty difficult or unlikely to live in North America without a vehicle unless you're in one of the major urban centers and you can get transit very easily. Now of that, 37% had two vehicles registered. Now, based on our call alone today, there was a lot of people who almost indicated that they have a two vehicle household. Some of you may even have a three vehicle household. So if we see this, there's roughly ballpark somewhere between 45 and say 50% of the American population that has two vehicles or two or more vehicles in their driveway. That's a big amount of financial energy. Now let's get into our family scenario. Okay. Everyone needs cars. Based on that situation, there may be a future out there where we don't need them. Hey, that'd be a wonderful day as soon as the teleportation device has been vetted. And you know, people don't turn into the fly when they go through the teleportation device. I'll be one of the first guys in there so I can avoid having to have really long road trips. Now, long road trips can be fun. I'm sure everyone's had a fun one. I'm also sure everyone's had one that wasn't very fun. All right, so we want to talk about our sample Family here, they're a young family. They had their first kid at age age 30. We're just going to. For the keeping it simple, we're going to have the parents the same age. Okay. They're both age 30. They're going to have three kids, and all kids are about three years apart. So they basically spent their life in diapers for the better part of 12 years, give or take. And we're going to have a couple of assumptions as we go through our scenario today. Okay? So our goal is to keep it simple at a very high level. We're not going to get bogged down to the weeds of things. Definitely you'll have questions. Make sure you use there's a question box, a Q and A box. Please put all of your questions in that segment for the chat box. That's where we're going to have all of our engagement activity. But if you have a question that comes up, please use the Q and A box and put them in there so our team can start answering them as we go. All right. Be very helpful. Now, our focus is going to be on the payments, all right, the flow, the cash flow of vehicle payments. Not going to be looking at what's the interest rate on a car loan here and a car loan there. Like, we're not going to get into those details. We're going to focus instead on the cash flow because that's the financial energy that we're trying to recover. And there's going to be a lot of moving parts in this. This example that we're going to go through is based on, you know, some very staccato type of. Of things. We're buying a car at this age. We're buying a car at this age. We're buying a car at this age. The reality is, we all know that that's not the case. You buy a car when you need a new car, and the time frame is going to change. Sometimes it's five years, sometimes it's 10 years. So for our purposes, we're going to keep it a little bit more consistent so that we're building something that is logical and makes sense. And it's based on some of the averages that we're familiar with in the way that we meet with clients for the last 15 years. That's kind of the premise of how this was constructed. And so we recognize everyone's in a different place where they're at in their financial life. For the purpose of our example, we're trying to kind of hit as many of those, you know, Check as many of those boxes as we can as we go. Is everyone okay that we've got an example set up like that? If you're okay with it, type okay in the chat box. Or a simple K would work. And let us know if you're all right with our example today.

And I don't know if Roman. He might.

Yeah, we're getting a lot of okays. Yeah. Lot of.

Okay. Okay. So no. No one's going to yell at me if they don't like the example. Okay, great. Thank you. Okay, so in our scenario, everyone needs cars. We've kind of demonstrated that based on the statistics that we looked at. By the way, we're not buying Hot Wheels, even though I've got a picture of some maybe here. So, again, our goal is to recapture in that. That closed system. We want to go from having an open system where everything's leaking away and disappearing, to a closed and contained system. Think of an aquarium. In our example, we're focusing on the purchasing of the children in this scenario, not on the purchases of the parents. Okay. So that's where our mind is going to be focused on the purchasing of all the children. In fact, the children's spouses, we're going to talk a little bit about that. The parents also need cars during this experience. We're not going to be bringing in any of those numbers, but I'm going to be asking some questions about it as we go, so we get us thinking about that a little bit. All right, now we're going to assume that the parents in this scenario, they've already started the infinite banking concept in their life. They've read this book. They've gone through some of our education. They've watched a bunch of YouTube. They've attended a webinar. Just like you guys are like, oh, man, I want to keep all the car payments in my life. Let's do that. And they got really wrapped up in it, and they decided to become on board and become clients and start engaging actively with a coach, taking control back of their financial life. Okay. So they're already in that process. So we're going to assume that they're building up a system of insurance policies in the format, working with a coach hand in hand. They're engaged on a regular basis, and they're doing all the steps to make sure that they can start communicating this to the next generation. So they're already in that process. For the purpose of tonight, though, we're not going to be going over policies and bringing in their system and talking about it, it won't be necessary for our discussion. Okay, but just giving you insight that without that foundational level knowledge that they've already built up, they probably wouldn't be able to implement what we're going to talk about today. Without that foundational level knowledge, they might not be able to accomplish what we're going to be discussing now. Here's a picture of Nelson Nash. For anyone who doesn't know Nelson, My, my friend, my mentor, I miss him dearly, absolutely love this human being. It was an incredible human being, completely changed my whole life and thankfully I was blessed to get a chance to know him, to spend time with him. In fact, this picture, I was in the room when this picture was taken during the documentary film. If you haven't already seen it, I would encourage you to go watch the documentary film. This is Nelson Nash. You can find that at Nelson Nash Film. That's Nelson Nash film dot com. So if you haven't done so already, feel free to go watch that. It's only one hour. It's a well, well utilized hour of time in my opinion. Albert Einstein imagination is more important than knowledge. Nelson was a big fan of using our imagination and, and he focused on as one of the core elements of the infinite banking concept. He said it was an exercise in imagination, reason, logic and prophecy. So those components we're going to be exercising as a group today as we go through our example. Now we're talking about a family aquarium here. Okay. And again our goal is to capture that financial energy into this closed loop aquarium. You know, an aquarium is a whole ecosystem where fish and fish related aquatic sea life can live without ever having to leave that whole zone. That's what we're thinking about when it comes to our financial life and our financial energy. Now we have a new book that is, it's not officially launched. It'll be launched officially at the end of summer but it is available to go and access now. It's@don'tspreadwealth.com so don't spread the wealth is really about the, the, the objective of being able to host family banking meetings and the importance of those and what that can mean for your kids at an early stage. It includes lessons for kids. Mindset is very important and that mindset matters as we go into the discussion that we're going to have for this passive income strategy. This without this mindset in place, it might be difficult to implement what we're going to talk about tonight. Okay. So all these things are like building blocks or like Lego building blocks on top of one another. So here we go. Let's get into our example. We have now the. The very first family vehicle here. We had a, the parents were age 30, they had their first. Their first kid. We shoot forward 16 years in time, and now they're ready to get their driver's license and go ahead and start driving. Now in this day and age, I remember for me, when I turned 16, I was probably writing the driver's exam within, probably within 10 days of turning 16. Like it was pretty quick and that was common. I grew up in rural Alberta, and in fact, my parents needed me to have a vehicle so A, they could stop driving me places and B, so I could work on the farm and I could work in their business. And they needed me to have that. So it was like a push in this day and age, what I'm hearing, I could be wrong, but maybe you guys can let me know in the chat box. Would you say it's more common for people to get their driver's license around 16 or less common? So let's hear more or less in the chat box. Let's see what everybody thinks about that.

I know my, my children actually start thinking about it at 15 and a half years in Manitoba. Maybe that's, that's the different law. But yeah, we have more and less. Less.

Less, more.

A little all over map, isn't it? Yeah.

It sounds right.

I think a lot of that's going to be based on where people live relevant to, like geographic areas or how far away are you to resources? I think definitely in the rural side, we see probably a bigger push to get those things done. Okay. So at this point in time, the parents are 46 now, they need a replacement vehicle anyway. And so rather than buying or helping their kid buy a car, their kid's gonna get their car and dad's gonna go get a new one because dad needs a new one anyway. Now, when dad transitions old car to the kid and go gets new car, this child, of course, is now gonna have some responsibilities. We're gonna talk a little bit about that in a moment. But what's important to recognize here is that car that dad is transferring, that car is already paid for, so he's transferring the car over to the kid. And there's not like there's a loan outstanding on that vehicle, but we're going to talk about a financing arrangement because the car has value, and that value is now understood at the family level because they've been having discussions about it. Okay. So the parents are still making their own vehicle payments, they're buying their own vehicles. They're doing it in a way that they've learned how to do over that previous 16 year period. They're already trying to recapture a lot of financial energy using their policy system which is we're not going to dig into a lot today. But the focus here is again when we're transitioning to the, to the kids. So when we look at this just kind of at a high level. So we've got cars we can see here's our young family and as they're, they're growing and transitioning now we've got these adult ish, adult adjacent youth who are looking to start driving in, in the world. And let's take a look at how we have set up this idea of car purchases. So at age 16 we're going to get that first vehicle that's the hand me down, you know, we're going to call it from mom and dad. They're going to go actually buy or purchase their first real vehicle around age 22 again could be above and below that to, to be determined. And roughly speaking about every six years we're going to see another vehicle acquired or and you know, that six year period really comes from a lot of the feedback that we've received from people over the last 15 years of doing this. I mean we've done events with, I don't know, I've probably asked this question well over a thousand Canadians and based on being in rooms full of people, the average has been fairly consistent between about five and seven years. Is roughly every time someone's swapping a vehicle, there's always someone who gets a vehicle to last 10 or 12 years. But they are on the outer fringe. They're not what I would say the norm for us people and a dual family household. Usually you're rotating one vehicle out about every five years, roughly speaking. So maybe you get 10 years out of one vehicle but they're alternating between when you purchase. Okay, that's common. What happens. So here's kind of the ages that we're setting out where the, you know, each kid is going to be buying vehicles. And as you see when we get down to the later years, we see the vehicle styles kind of change a little bit. Granted I'm using some very basic icons here but you know, use your imagination folks. We've got kind of this crappier looking hatchback car, that's your Honda Civics and whatever, you know, or minivans. And then we've got maybe we're moving into some slightly nicer looking vehicles. Maybe we've got some nice SUVs, and then, you know, I've got like an Indy car here. Of course, that's you're at 64, hopefully you're not driving that, but you can use that as a representation for a little bit more of a luxury vehicle, essentially. Right. And you'll notice that we're also spending a little bit of a gap between the replacement time frame. Often as people get into their older years or more quote unquote golden years, they're. They're not needing to replace vehicles as frequently, although that, again, not always the norm. But they might have a desire for new ones, but they don't have maybe the need to replace them as often. So that's kind of the premise by what we're looking at here. So how do you think I did there, Rome? You think I cover everything well enough that we were good to move on and start looking at the next segment?

Yeah, absolutely. I would add that some people will buy maybe vans in, you know, in 30s, 30th and 40s, especially if they have like a big family, like six, six people in a family, then they may actually need a van, which also is a different type of vehicle.

Now I will say so. Personally, I'm a minivan driver. It's okay. You guys can send the hate mail to Chilliwack if you want. But I absolutely love the minivan. It's very utilitarian. So much so that we even wrote a chapter on the financial minivan in one of our books because of that very reason. There's a lot of advantages that the minivan provides for me. And although my wife didn't want one, she's now very happy that we do have one. So I kind of won that battle. Heather, I love you. Sorry. In case you're watching this at some future point in time. So this is, this is looking at, you know, the oldest child, but then we have to add in the middle child and then we have to add in the final child. So we have the same dynamic happening for each of them. The difference is that they're phased out by about three years in time because their kids are three years between ages. Does everyone understand what I mean there? So they're doing the same car purchases, they're buying the same price points of cars, they're going to get different cars, but we're looking at the same price point, and they're doing them roughly three years later than their, than their next oldest sibling. So we're seeing like a cascade effect build up of these car purchases. Okay. So if that makes sense, if everyone's with me, type a Y in the chat box. If you're following along.

Essentially it's 11 cars for each child. And then it comes to 33 vehicles. There you go in the last pack. Yeah. Everyone says yes. Yeah.

Okay, great. So now here is the vehicle price points or the purchase values that we're looking at. It's. It's actually not even purchase values. It's really more of the financing value. Because when you're thinking about the car payments, the car payments aren't based on the purchase price, they're based on the financing package. So for the purpose of our example, we're going to use these numbers because we're trying to keep this very high level. But in each one of these numbers, you're seeing, imagine that's the financing value of what's being financed. Maybe there's some trade in value of the previous vehicle or maybe they put a little bit of money down, whatever that is. And then this is what we're going to assess on the financing value. Okay. So you can see in the younger years, you know, we're basically raising the price about 10 grand every vehicle, give or take, until we get along the track. And then we're buying nicer things. Nicer things. And then when we got down to this age, we're just saying, okay, we're going to keep it about the same. All right, that's kind of the model that we're looking at for our example. And then that's going to happen for each of the three children. Now here we're going to look at the monthly payments. So back here we're looking at the financing price. Here we're looking at the monthly payments. What is the child going to be making as a monthly payment on these vehicles? Again, we're keeping this very simple, very high, high level. $200 a month on the $10,000 financing package. Well, over the period of time, that works out to ballpark, about 12.8% as an interest rate. Oh, well, it's a lot easier than if I would have said, hey, we're going to make a car payment of $179.43. And I had everyone put that up on the screen. Okay. So I'm trying to keep things at a very simplified high level for everybody today. So you can see those monthly car payments that that one child is making on a car, and then each child is going to make the same equivalent payment once they Acquire a car for the same price point. That's essentially what's transpiring here. Now I want to give some context to this. I think context matters a great deal. This is an example of a conversation I had in the last, I think it was maybe 45 days. I've had a lot of travel in the last two months, so I was going to say it was a month ago. It's probably actually about two months ago that I had this conversation. Young man in Alberta, lives in the Edmonton area. He's at 30. He just turned, actually just turned 35. And he works in Fort McMurray. He's got an oil field position. He does like, I think pipe QC in that, in that zone. We actually, you know, he was referred by a client of mine, a guy that I used to work with a long time ago, super nice young man. And he just traded in a vehicle that he had, a truck, 250,000 kilometers. He owned that vehicle for six years. Exactly the target that we're talking about here. On our call, he was having some maintenance issues and was really concerned about the vehicle shutting down on him when he was out on site and not being able to deal with it. Although they have heavy duty mechanics and stuff up there. It's a real pain because he actually needed, he needs to use it. He's charging himself out as a subcontractor. He's charging himself and his truck. Okay. So he needs to have that reliability there and he spends a lot of time in it. We actually talked about how much time he spends in the vehicle. So it was a 10 year old vehicle he went and made the trade in. And when he bought that vehicle, it was $35,000 when he acquired it six years ago. Okay, so just for context, 35,000 at that point he traded it and he got a brand new Ford F150. This is not the exact Ford F150 he got, but just an example of one. And the price tag was $90,000. After the trade in value of 12,000 bucks, he still had to finance almost $84,000. So everyone just think about that for a second. What transpired? How did he trade in 12 grand on a $90,000 vehicle and still end up financing almost 84. What happened?

Let me know if we see any answers coming up.

We have poor math.

Poor math.

Well, that's, it's definitely not method. I would, I would like to see. So what ended up happening was is that, you know, they got to get the warranties, the extras, the mud flaps, the. This the that all these extra bells and whistles that they try to load up and potentially even like.

Creditor insurance. So as an example, a lot of times what will happen in a financing package is they'll say, oh well, if something happens to you, Roman, something happens. You want to make sure the payments made. Now in some scenarios that's a monthly payment. But in some scenarios, especially in vehicle financing, what they do is they take the entire price point of that, that advantage that you would get and they front load it into the price point of the financing package and then you're actually paying interest on, on the insurance that's tacked in because you prepaid for the insurance.

Yeah, they like, they love to sell packages. Right. So they will include in nice package and they will give it to you as a package.

That's right. And, and then, you know, often it's a little confusing when you're in there, you're excited about your vehicle and they keep you waiting for a long time. So everyone's gone through that process, I think we all kind of know. And, and sometimes it's really good and sometimes not. So if anyone, by the way, if anyone sells vehicles in here, I have clients who own car dealerships. They're amazing. No slate against them. I'm just saying that there, there are common themes that people sometimes are familiar with in the car buying process. So really the price tag wasn't 90, 000. It ended up being about 93,398 after it was all said and done. So that's why the financing package is that amount. Now the car payments here for this gentleman were $1,200 a month. Now he had asked, he said $1,200 was a payment that he could work with. They talked about that in the financing department and he said, I'd like to have it paid for in six years. So what happened in this scenario is they set up $1,200 payments for six years. However, if you do the third grade math, that doesn't get his vehicle paid for because the actual amount of payments he has to pay it for is longer than that. And so what's going to end up happening is he's going to have a buyout amount. So he had $1,200 payments actually over 84 months. But what they did is they gave him a six year term. So that means that there's a balance to pay out at the end of the term. He's going to have to refinance or pay out cash to pay out the remaining of the vehicle. That's essentially what transpired. So the calculation was actually over seven years. Twelve hundred a month for seven years is almost $101,000 of actual payments. That's the financial energy, that's the cash flow. The jelly in the sandwich is the $17,402 of interest cost over that period of time. Okay. Again, our goal is trying to get that money flow back. So thinking about the money flow, just to reiterate, here's that energy that we've got, that water, that power. Now imagine for a moment what would happen if, if this, this young individual. Okay, so I use my real world story and that sets up what our children are now doing in our, in our actual case study. They're now 16, they're buying cars. They're 22, they're 28, they're 30, whatever five, they're 46. They're going through these stages of life and they're financing so parents can get this financial energy. We can retain that financial energy. And what I want people thinking about is what do the parents do when they're getting this energy? If they're at a stage of life where they're in their early mid-40s and they're still buying their own cars, and perhaps they've taken a policy loan from their insurance policy and they're using that to pay cash for a car and then they're making repayments to their own system. Well, what would happen if they were to take the kids financial energy and cash flow of car payments and then they accelerated the pay down or the replenishment of their system on their own vehicles? So just kind of think that through for a minute. Let's, let's just draw it out as an example. And Roman, maybe just let me know if you can, you can see this once I start drawing here.

Not yet, but we see the blank screen.

I was going to say that highlighter is definitely not going to work. So I'm drawing a mouse, everybody. It might look a little bit tricky, but let's just assume that this is the period of time. And let's just say we have a, a vehicle payment over six years. If we make the regular monthly payments and we go along, eventually it'll be paid off in six years. Whereas if we actually go and start accelerating that by making extra payments. So now imagine you take the kids payments because the kids are making car payments and we hammer that balance down much quicker and we get it paid off in, let's just say two and a half years or three years. Well, this entire time frame, there's no more outstanding loan, whether it's to the insurance company or a third party on mom and dad's vehicle and all the payments that mom and dad were making. So here's mom and dad, they were making a payment they were committed to, plus what the kids are making. That all can start building up and accumulating. Let me grab a new color here. Let's use, I'll use black for this. And it actually begins accumulating like this until they need to go purchase the next vehicle. Does everyone see what's happening there? Okay, so parents, mom and dad are making car payments on their own. They've got their own vehicles now the kids are making car payments, but they're making it to the bank of mom and dad, to the family system. That energy could be used to either double up or accelerate the recapture scenario of mom and dad's own other resources, whatever it is that they need and it could be piled up and accumulated or it can be reducing, say a third party debt or reducing a policy loan that they have outstanding. So then once that's gone, they can now start accumulating again and they're building up for the next purchase. So that's part of what can take place here. And I want to like expand on that in a great deal. But I just want to give everyone context to how that financial energy can be utilized by the parents. But they get to be in the decision making process. They're in the driver's seat. Money and the money flow, and that is so key.

Okay, awesome. What? Can I hop on for a second, Richard?

Of course.

You know what comes up for me when I see this is when there is like a waterfall which is just falling freely, this energy is basically just getting disappearing. Right. But when you build a dam with the turbines in it to generate power, you basically control the flow of water and that water actually works for you. That's exactly precisely what this family has achieved where they have put it down and all this water is now turning. This flow of cash is turning the turbine of the family and generating power, generating energy, generating the legacy for the family. That's what comes up for me, if you don't mind.

Yeah, totally. I appreciate you sharing that, Roman. I agree. That is exactly, you know, what we're seeing taking place there. And like that analogy is really helpful for people to see. So here we're going to start looking at that.

We lost the audio, Richard. I'm not sure.

Am I the only one who doesn't have the audio?

No, we lost him.

Somebody else.

Oh, here you go.

Got me there. Okay, great.

Yeah, I.

All right. Sounds like we're gonna be okay. Let me know if it happens again. Okay, Roman. Okay, so here's a picture of my wife and I at our. At our wedding in Jasper, Alberta. I liked. I negotiated for goofy photos in the wedding photos. I had to negotiate for a certain percentage of those that were allotted for. This was one of them. And so we're now showing people getting married, the kids getting married around age 30, just like the parents did. And if that's the scenario, and we have a second generation now beginning to look at buying cars, we need to start factoring in the spouses. So here we see the oldest child gets married. Spouse probably already has a car, but is going to need one soon. Like spouse needs a car. We have the next child, three years later, gets married, spouse needs a car, and likewise. So we see this trajectory of marriages happening, families growing, car purchases continue. And now we're adding a whole nother body into the car purchasing scenario that wasn't there before. So we're going to almost explode the car purchasing potential and then the financial energy potential that exists for mom and dad as they go into the future. So to take that a little bit further, we have that cash flow that, without having clear direction, if we didn't have something in place to contain some of this, what would happen in most families is that that financial energy is still going to flow, but it's going to flow to someone else's banking institution. It's going to land on the books of someone else's bank, and it won't be this family. And that's what we're trying to fix and correct. Instead, what we want to do is we want that cash flow to be directed with a proper warehouse. This is where Nelson Nash's concept of becoming your own banker comes into play. So again, if you haven't already done so, make sure you schedule a call with one of your coaches to. To look into understanding this. You know, check out our content, get a copy of the book to really learn how you can have that warehouse work for you. So we can reduce outgoing payments to third parties. We can start to reuse capital that the family is already working with and recycle it within the family aquarium. The family system, just like water circulates through, like, the aquarium's filters, and then it's able to be reused again. Yeah, you're still injecting some new water, but there's also a recycling kind of process that Happens there as it's being clean and recycled. Same concept that we're looking at just around money. So now let's look at the parents in this situation. Well, at age 30, for the parents, they had their, you know, first little kid, that little. They, they were welcomed with this beautiful young child. In fact, I was on a call today with a young, with a young man who was literally expecting to be going to the hospital for delivery of a baby today. So pretty cool scenario. So here we go, age 30. And now if we shoot forward a couple of years, here's 16 where their kid is getting their first car. That's going to be this kid over here, boom, getting their first car.

We shoot forward a little bit further in time. We now have the parents, they're in their early 60s, and at this stage of the game, these kids are now getting married and increasing the size of their family. They're welcoming new members of the family as they're growing. Okay, now obviously there's some expenses there at the wedding. We're not going to get into that today, but perhaps that's another area of cash flow and financing that can start to find its way back into our system if we're thinking about it properly and we have the right mindset in place. Now from this period of time, they're going to want to start thinking about passive income or quote, unquote, retirement. Now, in our word world, we don't really like the word retirement. Retirement, in my opinion, means the big sleep. It's to be put out of service. So we talk about passive income and, and being able to continually add value into the world with the things that you do and the gifts that you have. So, but this is what we're going to be start talking about in the parents timeline. Now, I want to circle back a little bit to when we got that first hand me down vehicle. So the hand me down vehicle that we got, it was about $10,000. And that $10,000 vehicle or its value, it didn't have any debt on it. So it's not that the children were paying. They're making a payment, a financing payment. But mom and dad don't have a third party that they owe. So the kids payments are actually building up, building up, building up. And mom and dad are building that up into their system until they need to go pay for the next vehicle. When they pay for the next vehicle, the balance is going to come down and then they build up with two car payments. Then they buy another vehicle and the balance goes down, and then they Build up with, you know, three vehicle payments potentially or two. And then now every once in a while you're going to have a year based on when the kids are purchasing and when the spouses are purchasing, where you're going to have an off year, you might actually be buying two, maybe even as many as three vehicles in that one year because the need for a vehicle is going to ebb and flow. So you might have a, a bigger drop, but then you're going to have more payments and the vehicles are getting more expensive as we go throughout time and we're going to actually increase the amount of payments and we're going to increase the volume of money that's coming back into the family system. Okay, so just to recap, we kind of talked a little bit about this, but thinking about what happens as people go through these different phases of life, the types of cars, if you think back about what kind of car you were driving when you were 18 years old, and then you compare it to the kind of car you have now, you know, if you think about the type of vehicles that you see people driving around in, once they've well established in their career, their kids maybe have finally exited the nest and maybe they're not spending as much money on their food bill and their food bill gets replaced with a car payment because they want to finally a nice vehicle. You know, these are the kind of things that we see happen pretty consistently for people. So just consider along that wheel of life how things do change over that timeframe. So let's look at the parents and do a bit of a summary. So from age 46, that's when they find they, they have the hand me down vehicle to child one and they're starting to receive payments all the way to age 66. And then we're going to start looking at 67, where they're going to begin using a bit of passive income from this strategy. So between these two ages, they finance nine cars plus the three hand me down. So there's a total of 12 cars flowing into the kids world, nine of which were purchased over that time frame. The three hand me downs of course, over that 20 year time frame. Now before I go any further on this, Roman, I just want to do a check in. First off, I want whoever's on the chat box, just let me know. Does all this sound reasonable so far for something that would happen with a typical family? Are we on track with what? Maybe it's not exactly your family, but is this the kind of thing that you think would be Reasonable to happen in a family scenario. So let's, let's see what people say. You can be an N for no and a Y for yes.

Yeah, we have a couple yeses so far, Richard. Yeah, we have all yeses. It totally makes sense because the time frame of six, six years totally makes sense. And the amount of vehicle. Vehicles makes sense. Absolutely. And the payments the average family is doing on the car is totally making sense. Yes. Everyone says yes.

Okay, great. Thank you guys. I appreciate that. I want to make sure I'm not just, you know, talking. Whatever. Richard's got his mind. I appreciate the validation. It's really helpful for me. Okay, so, so we can kind of see, here's the three first vehicles. Then we can see. I had three vehicles that were purchased that were worth 20,000 when the kids were in their early 20s. We have six vehicles that are purchased that are worth about 30,000. That's because we have the kids plus spouses now adding into the mix. And that's all happening in that same 20 year time frame. And so, and again, it's over a variety of purchases. Maybe we haven't finished paying or receiving all the payments for those yet, but the purchase, the acquisition of a car has happened in that chunk of time. So if we add all this up, the total payments and financial energy that have transitioned over all of these vehicles that are, that have the potential to flow through the parent's life is $355,000 worth of financial energy. Now let's just pause there for a moment. Just consider what kind of a difference and let's use it. Let's use a scale of 1 to 10. On a scale of 1 to 10, one being Richard, I could care less. Why would that even matter to me? And a 10 is. Oh my God, that could be revolutionary. What degree would having this financial energy available when you're reaching 66, 67, what kind of impact could that have for you? So on a scale of 1 to 10, let us, let us know.

We'Re getting 8, 10. 8, 10. And in fact, Richard, we had one comment someone mentioned. What if I don't want to finance vehicles? What if I want to pay cash? How would you, how would you answer that? Yeah, so.

Very good comment. So in this scenario, these people are paying cash for vehicles. The financing is that the children. So you could look at it this way. The, the parent is becoming the car dealer.

Yeah.

They're going and buying and negotiating the deal, acquiring the vehicle that the kid wants. And then they're saying, here's a contract that you're going to sign. And I have, I have a, a registered loan arrangement on this vehicle. And you now need to pay me a payment for the use of this vehicle. But we're going to contain those payments in such a way where when I go and I leave planet Earth, you're going to be able to get access back to all your car payments. That's the generational impact that we're going to create here. So I'm kind of jumping a bit ahead. But to answer that question, we're going to create an environment where all the financial energy for the car purchases are going to be able to be contained and then also available to the children who made the payments once mom and dad are gone. So we're going to create this multi generational impact.

Yeah, I just wanted to add that if you are even paying cash for the car, how did you save up for the car? How did you save up this. You probably from your income. You set aside 200, $300 every month. Right. To be able to pay cash for the vehicle. So is it a payment, Richard, or is it not a payment?

Yeah, I mean, a payment has to happen. So even if we pay cash for something, we're still making a financing decision. We finance everything that we buy. We're either going to pay, pay up a premium to access someone else's pile of money, or if we use our pile of money, which is our cash, and we drain it, we're giving up the potential earning into all the future tomorrows that we have of that money. So there's still a cost, and that cost is a financing decision. So even if we're paying cash, there's nothing wrong with paying cash. I don't want to suggest that there is, but there's something to be aware that we need to reckon with the opportunity cost of that cash because it now can't do something else for us. So we're still making a financing decision. And that's, by the way, that's very well discussed and covered in the book becoming your own banker. So if you don't have a copy of that, please make sure you get a copy after this call that will help clarify that question substantially. Now we're shooting forward to these parents who are at age 67, give or take, roughly, and they're now in a position with the six cars that are being financed between their children and the spouses, where they're generating $4,200 a month in monthly repayments on cars. And these are based on $30,000 cars each of the six cars. And that works out to, you know, $50,000 a year of cash flow. It's a pretty good amount of cash flow so far. So my question for everyone is, could the parents use half of that? If you're generating 50, just shy of $51,000 in monthly repayments coming into your household from car financing or from children buying cars through you as a, as a source of value, could you take half of that amount of payments and use it to go do something else? What, what does everybody say.

We'Ll get? Yes, yes, of course, they can only do half of it.

Yeah, you, you could do more than half if you want. But for the purpose of our example, we're going to focus on just using half and we're going to take the other half and we're going to have that going and still plugging back into whether it's loan repayment in the, in the infinite banking system or whatever. So it's still going to be utilized. It's just going to be utilized differently. 50% of it, though, we're going to go and be able to buy groceries with. We can use that as a source of passive income. Passive because someone else is making the payment. So if we take half of that, we got about 20, $100 a month of extra augmented cash flow that could be used as a retirement scenario. Now, as cars are purchased, the parents may need to dip into their infinite banking system every once in a while. Because some car. Sometimes you're going to have years where you purchase two vehicles. The price of the vehicles are going up. Sometimes you're going to have. There's different periods of the year where you do it. You know, if we showed $150,000 in one year of vehicle purchase because there was three vehicles purchased, let's just say they're not all being purchased on the same day. Okay? So recognize that throughout the course of a year, that's going to change. But the parent can decide how they use that cash flow. They don't. They don't have to make a rash decision. They might say, hey, for the next three months, we're actually going to go to Europe and we're going to take all of those car payments and just use them while we're in Europe. And then when we get back, we're going to start replenishing our systems so they have the autonomy to be able to make these decisions. All right, the purpose of our example, we're just going to highlight on the. The parents using 50% of what that cash flow Coming in is now here. Just to recap. I wanted to bring this back up so everyone's kind of back up to speed. This is the trajectory of vehicle purchases that we're, we're seeing with the kids. Okay. So we can see that the pricing of them is getting a little bit more each time they buy a new one. We get out to this older age for the kids, mind you, and they're buying a little bit more expensive vehicles. But at this point in time, when the oldest is 64, the parents are well into their 90s. Right. So the fact that those parents are probably not even receiving those payments at this point. So we have to exercise our imagination a little bit here from that perspective. But let's summarize the first 20 years of the parents doing this. So there's a lot of numbers on the screen, but I'm going to walk through this a little bit. Roman's going to jump in and help me out as we go and we'll kind of ad lib a little bit here with some of this. But consider for a moment, when we started this parents age, they're getting that hand me down car. So this vehicle number one is a hand me down car. This is a hand me down car. This right here is a hand me down car plus a $20,000 car. Because the oldest child is buying their first vehicle actually from a dealership or a used car. Does that make Sense? So there's 30,000 of vehicle purchases, but it's actually two vehicles happening right here at this stage of the game. Okay. And we can see the accumulate the cumulative and we're only looking at if we just isolated the car payments. Here's the accumulation of all those car payments happening over time. We can see as we acquiring new vehicles and multiple vehicles and the price point of the vehicles is going up that the accumulation of monthly rev, call it revenue, but monthly cash flow that cycling back to mom and dad is increasing over time. Okay, Roman, what are some observations you have when you look at this that you want to highlight for anybody?

That the there is a constantly estimate payment that they need to make for the cars and the stream of payment that are they're getting from the children.

I don't know if this makes sense or not, but what I'm getting is that they have to have a big enough system to buy those vehicles and they also want to.

Make sure that they redirect portion of those payments back to the system. Again, it's up to them, right?

That's right. And something I really want to touch on here. And I'm glad that you mentioned it. So I'm just going to use a highlighter. So if we think about vehicle one and vehicle two and vehicle three, those first three vehicles, those didn't have any. The parents could collect all of that, that cash flow and they could stockpile it, they could build it up essentially. Or earlier I did a drawing where we said if mom and dad have their own vehicle that they're making payments on, what if they took all that payment energy and they rapidly, you know, eliminated the debt or the, the excess payments on the vehicle that they own. So that combination of cash flow can be rebuilding it basically somewhere else. So really when they get to the stage where they're buying vehicle, they're not even buying vehicle two. They're just receiving payments on this. We're showing 10,000, but it's not actually money going anywhere. It's just the vehicle keys and the title to the vehicle is transferring hands. That's all that's really taking place. So really for this whole first chunk of time, almost all this accumulated payments, if you just looked at it, that could have just been stockpiled and earning interest in a high interest GIC or some kind of an investment or whatever as an example. And now they're going to take out 20,000 to go buy the vehicle for the oldest kid. But they still have, you know, $12,000 left, plus they're now getting a higher volume of payments. So it's hard to see that on the spreadsheet. But I want to paint that picture for everyone. We have to understand that how this flow is taking place is very important and also setting up the right parameters to make sure that we're understanding and the kids are understanding how that's going to work. So again, in our book, Don't Spread the Wealth covers some of that. Not vehicle purchases specifically, but that mindset component of having those great conversations with your, with your children. So let's, let's now take this. And now let's go to age 67 and we're going to start breaking down the final section of the parents lives and taking a look at what happens here. So this might be a little bit difficult for everyone to see on their screen. Bear with us here. So we've gone now to age 67 and we can see the annual car payments there, our monthly car payment, the amount that I mentioned earlier. And the parents say, hey, we're going to take 50% of that and we're going to start buying groceries. We're going to use that as a supplement our retirement income, that becomes a passive income stream for them and as these payments. And why 50%? Well, why not? Right. They're going to take the other 50 of that financial energy and they're still using it. They're just using it in a different way. They're repaying policy loans or there's a number of things they could be doing with it, but for our purpose we're just using 50% of spendable dollars that they're using. Right away the other chunk of it, the other 50 will become spendable. It's just when, when they want to use it or not, it might be for more random scenarios. Maybe they want to do an investment purchase, maybe they want to buy a cabin at the lake. Like there could be other purposes why they want to make that work. And so you can see they're still buying vehicles for these kids along the track here. These years where we have 90,000, it's not a $90,000 vehicle, it's two vehicles, 40,000 and a 50,000 bar vehicle being purchased, etc is kind of taking place. And what's interesting about this, if we look at the cumulative passive income over a 10 year period starting at 67, going to the end of 76, there's over $300,000 worth of accumulated passive income that they've been able to spend in that time frame. I think that that's pretty good. The other thing that's kind of nice is that we can see because of the lifestyle and the price of vehicles increasing and the number of vehicles, etc, the car payments are increasing. So their passive income is, is going up with it. They're, they're. Because it's based on the purchasing requirement of their children essentially and their children's spouses. So let's extend this a little bit more. We're going to go from that, that point in time and we're going to take a look at the next 10 year snapshot. 10, 11 year snapshot. We can see a couple of key things. So number one, we had 300,000 here. Now we're at almost 500,000 at age 80, you know, age 81 in cumulative. So they've gained almost $200,000 of passive income over that period of time. And then if we go from age 81 again to basically down here at age 86 in about a five year period, they've gained another 200, $220,000 of passive income. So the utilization of income I think is very, very interesting to see. And we look at the total Cumulative vehicle payments. The kids have made up to that point in time in their life. It's. It's almost $1.8 million worth of vehicle payments. That's a lot of energy. That. Again, go back to that picture, that image of that waterfall in your mind. That is all that financial energy that's flowing through this family's. This two generations of this family's lives. We haven't brought the grandkids in yet, but now, if you want to use your imagination, you can start to think about, okay, there's a third generation that might exist now. They might be at driving age. What are. What are their kids doing with the grandkids? How is this beginning to materialize for them in some way? Now, if we move down and we're going to go all the way out to age 95 in our scenario here, we can see the annual car payments have gone up. We're at 105,000 of total annual payments, 50% of that, $52,000 a year. And we can see the cumulative passive income that's been created over that entire time frame for this family scenario. A lot of moving parts that are happening here. Don't get me wrong. There's a lot going on, but this is really very simple. It's. We're going to use cars. We're going to use a lot of them. The kids are going to need them. The kids spouses are going to need them. The grandkids are probably going to need them. Someone is going to get the money. Who should it be? If you guys think it should be you, type me in the chat box and let us know if you think it should be you getting all that money.

Okay.

Got any. Got any me showing up there? Roman?

We got. We're getting a lot of mes.

Yes, a lot of mes. Okay. By the way, quick value check in. Are you guys, you getting value out of this? Give me a 10 if you're getting a ton of value, a 1 if you'd rather be watching paint dry.

All right, we're getting tens. 20, 10. Yeah, a lot of tens.

A lot of tens. Okay.

The low so far is eight, but we'll.

We'll work on that eight. We'll try and get them up to a nine before we're done. Okay. So. All right, so now, now just. Again, I don't want to bring a lot of complication here. I just want to just. We're just talking things through. Coming up, somebody. So at this stage of the game, we have. These parents are 67. They. They've been in working age in Canada for a long time. They're going to start to be able to have some of these quote unquote entitlements. CPP.

Confiscation plan. Sorry, did I say that out loud? So the confiscation plan that the government of Canada has created where they're going to compensate your working income over your years of your life to put it into a giant pool where hopefully you'll get some of it out. In fact, it's really well funded, you'll probably be fine. But nevertheless you're going to start being able to draw an income from here. You get to choose when you start to take it. Some of those things. OAS is another thing. And depending on where you're at with all your income, whether you're going to have it clawed back or not, you know, that's to be determined. But let's just go through some potential estimates. So doing a couple very quick searches, even just from today, the average for Canadians right now and about in 2024 is about $835 a month as CPP that they earn. Now that will range based on how long you contributed, how much did you contribute, what time frame did you begin taking it? Did you take it at 60? At 63, at 65? All of those factors are going to, going to adjust. And so the average for the average Canadian receiving cpv is around 835amonth. So it could be higher than that, could be a little bit lower. So I just picked the average. Now if we have two people who spent their life working in Canada, then let's just times that by two. And that gives us this, we have old, old age security. If they're able to get the maximum benefit amount, it's around 713amonth. It does adjust, I believe every three months with the CPI. Now if we had that for both parties, husband and wife, great times it by two. We can see how that works. That's giving us, Roughly speaking, about $3,000 a month in an income on this family where we're assuming the dual household. Both of them worked throughout their working life. They both contributed to cpp. You know, they both got some of these benefits. The reality is that's never the case. That perfect scenario doesn't really work. But you guys can kind of see how these things come together. What's interesting is that the car financing model almost doubles their pension income and in some years it actually more than doubles their pension income. So that, and that's only using 50% of those vehicle payments. And I think that's a really important thing. So here's a method. Just through vehicle financing and the family dynamic, with good education and the right mindset, you could be able to create your own, let's call it pension by vehicles would be a way to look at it potentially. Okay, now I want to circle back again. Let's go back to that young gentleman I, I, I talked about who bought that new Ford F150. And if we think about that, here's what I didn't tell you about his situation. He told me when I was speaking to him this again, this is two months ago, that this had to do with a dealership, a Ford dealership in Edmonton, in South Edmonton. It's a dealership I've even been to, I know exactly the dealership. I don't want to mention names here, but he, they told him very clearly that if he was able to pay cash, they would have let him take that vehicle and drive away with it for 85,000. So the sticker price was 90. He could have walked away with 85. He would have saved 5,000 right off the gate. But he didn't have the capital, he didn't have the money. He wasn't well capitalized. He couldn't make that exchange. And a lot of people are in that position now. The 5,000 in initial savings, but there's also the savings value of approximately seventeen grand of interest that he's now com going to be paying because of the financing package. So there's really about $23,000 worth of savings on his $90,000 vehicle. Had he been able to do it this way. Now why do I mention that? Why is that important? Well, here's the reason. Here's what I want everyone thinking about. If we have built up a family system, mom and dad have gone through the initiative to begin building this, this warehouse of wealth. They're implementing the strategy of becoming your own banker, not the car financing strategy, the process of becoming your own banker. And now through the mechanism of doing that in education, they're creating a car financing strategy inside of their family scenario. Okay, but given that situation over that 20 year period that they were building up their resources using the infinite banking concept, what's the probability, low, medium or high that they could have been. When the kids needed to buy vehicles, they were actually able to basically go pay cash for those vehicles and negotiate with the car dealer or the private seller in a cash deal, you know. Now not always is there a cash deal to be made. Sometimes that is not the case. Some dealers I know, they actually want the financing. They're really A, financing B, business that sells cars. But that is not the case across the board. In fact, for this young gentleman, it was the opposite. They wanted to get the car off the lot and get rid of that inventory and get the, the churn happening. That's what they were looking for. So what other advantages could have been created for this family that we haven't even talked about if they were in a position where they could do that every time? And if we think about the volume of vehicles that they're buying over this two generation lifespan, do you think you'd get a little bit better at negotiating car deals? More importantly, if you had a car dealer that you could work with or a couple and you could say, hey, about every 30, about every 24 months I'm going to be coming in and buying a vehicle in the, in the thirty to fifty thousand dollar range. I want to make an arrangement where I can work with one person and we can sort something out where we can get deals done. Do you want to do that with me or not? There's some things that you can start to do here. This is the, what we would refer to as the unseen. There's the scene, the things that you can see on a sheet of paper, a spreadsheet, an illustration and a book. And then there's the unseen, the things that happen in the real world that you can't necessarily put your finger on. You need to think them through, you need to experience them. Our job, Roman's job, my job, our team as coaches, is to help extrapolate and give you some viewpoint, some guidance, ask the right questions to help you be able to see some of that unseen for yourself so that you can catch it and start implementing it in your life. I hope that makes sense for everyone on the call. So that's another area of potential value that we haven't even really talked about. I want to just mention at a high level now. I'm going to bring up my, my screens for the last couple slides here and then we can get into a little bit of Q and A so I can try to get us ending on time. Quick time check. Roman, where am I at? Any idea? Am I, am I hitting the mark? How are we, how are we doing here?

We're doing really good. We have about maybe, I should say 10, 15 minutes left to be on time.

Okay, perfect. Oh, I'm excited. If we get everyone out the door early and back to their great evening. And again they're having a ton of value here. So let's summarize what happened in our scenario and then we're going to open up the questions in a moment. So in this situation and going up to about age 90, the parents did 40, you know, 41 cars over that time frame. That included the three hand me downs. If they went all the way to age 100, it would be 47 cars. That's 27 for their kids and 20 for the spouses. That is a lot of cars. Now, earlier we asked questions about everyone's cars in this environment. I think we came out to like an estimate of about 25 cars for a household. Was that what we landed on, Roman?

Yeah, that's pretty, pretty accurate.

So we're talking about 25 cars for a household with everyone that's on this car that wasn't including all of our children.

Yeah.

So here in, in our scenario, we're actually talking about three households because we didn't even include the parents at all. So I would say, based on what everyone gave us as feedback on the call today, is that we are being very conservative and we've undershot the target based on the flow of money that's going through Canadians and Americans. Hands just on car purchasing. Would you agree, Roman?

Yes, 100%.

Okay. So I think everyone should have that as context in the back of your mind. So looking at this, in this scenario, there's over $2 million of car purchases. Car financing in this scenario. So sorry, not the purchasing, the financing amount, maybe there was some trade in values. We're not factoring that in. We're talking about the financing package amount and that's all the way to the age 95 of the parents. The cumulative payments up to age 95 for our example that was received was almost 2.7 million. And so this is where we talk about the jelly in the sandwich. That extra value, that extra interest over this entire time frame. We're talking about from, you know, 46 to 95 range. It's a long time frame of purchasing and a high volume amount of money. Someone else, someone's bank was going to earn that money, someone was going to get it, or someone was paying cash and they were going to give up the potential of that money. They were either going to sacrifice having it or we were going to pay it to a third party. That's generally what's going to take place. So a huge, I think, advantage to be able to operate this way in, in the family line. Now, last kind of final thoughts before we go to Some open Q and A. And I invite the team to jump on with me here. What are the. If this worked for cars, why are we stopping at cars?

We shouldn't.

So there's a couple things on the list. You know, I'm using a computer right now. I also just bought another one because I need it for another project that's sitting over here. My kids got a Google Chromebook. You know, there's three computers and four. Three or four computers in this house. We need iPhones and, you know, Android phones. Well, you. Right now what we do is we do a, we get, we get a free phone, but it's not free. There's a financing package. You pay for it over 24 or 36 months because you're now hooked into a contract, which is generally the case. But if you actually pay cash for that phone, well then maybe it's a thousand dollar phone and everyone has one of those. So if it's a thousand dollar phone and you got four people in the family, there's $4,000 worth of phones. You're probably replacing a ph once a year for someone. Could that be something we could build into this system?

100%. So most, most of the people I know replace phones at least once a year, once every two years. So there's a lot of phones.

And, and the concept is, is that you're, you're getting the phone for re. Because you're already paying for your, you know, your, your bill. But there's, there's a financing package component to that. And, and it's not exclusively across the board for allies, but it's generally the case. So what happens for me, I now go pay, I know, go pay cash for phone, for phones, and then I take the exact same payment. They were going to charge me on the bill for that amount for using their deal and locking into a new contract for 24 months. And I pay that amount back to my family system. So that's just one microcosm of this kind of taking place. So what I'd love to hear for the folks on the, on the call and maybe just jump in, what are some other things that you can think of that we don't have on this list? What comes up for you and your family? Some purchasing, some things that you do that we haven't talked about, we haven't captured that we think should be on there? What, what comes up, Roman?

We're getting vacation OLED tv, which is. Yeah, some, some sometimes they can cost a lot of money. Travel, rv, vacations, boats.

Okay.

Anything Else, what else?

We got cable tv, children music lesson. I can relate to that. Children music lesson is a huge expense for us as a family of seven children. Everything. Funeral policies, golf clubs and guitars, tuition, tractors, combines, furniture.

Braces.

That's a good one.

One pair of braces cost like $5,000.

So 6,000 here. So first of all, for everyone that's typing all these in, like, if you don't have someone sitting near you that you can high five, like, you could just pretend that Richard's giving you a virtual high five. So, number one, I love the engagement. I'm very appreciative of everyone who's participated fully tonight. Like, you have no idea how, how wonderful that is to, to, to be on this end and experience that and also be able to, to feed and engage with you as best as we can given our format. But based on the responses that you guys are coming in and telling us, what it sounds to me is that you're starting to begin to see the infinite of infinite banking concepts. Infinite banking is a concept. It is a thing that we think about and we understand and it becomes a lifestyle. The infinite component is only limited to what's in between. This squishy mass that sits between our ears. Your imagination, your ability to think through what you're doing and how you might do it differently is really where the limitation lives. And so the fact that you're already producing all these incredible ideas and responses on this, it just, it just makes my heart sing with joy. It tells me that not only are you, are you on track, are you getting it? Can you see the possibility and the potential? But if you live in that world of possibility and potential, that's going to create a lot of additional value for you as you go throughout the rest of your life, especially when you can incorporate this incredible process into it. So thank you so much for your participation. Love it. Love the responses. So with that in mind, we're going to go ahead and we're going to open it up to a few questions and I might have to get one of my teammates to keep me on track with the time here. I do want to make sure I made a commitment to try to get us ended by the 90 minute mark. So if someone can maybe help me with that. Anyone on my team knows that Richard is not the right person to be necessarily trusted with managing a time clock.

So. So, yes, I appreciate that.

Yeah. So this question, Richard, thank you so much. First of all, you did really fantastic job, you know, describing this. Something that is unseen right in the, in the process of banking, this is the something that is unseen. But it is a really good exercise of imagination to imagine what is possible for you as, as a family banker, how you can do it a little bit. Think about it in a little for a bit different perspective. So Cindy is asking after all.

What is owed to the insurance company for the loans. Like you haven't. We didn't talk much about what is the owning owing amounts to the company. So how do we go about paying that off?

Yeah, so great, great question, Cindy. And so what happens for a lot of people is that when they set up a system again, they're working with a coach. Everyone's objections, sorry, objectives are different in how they build and design things. What, what takes place is for a lot of people, they will go and take their insurance contracts if they have them, and they might eventually turn them into a collateralization model where they're borrowing against them to some degree and depending on your jurisdiction, maybe borrowing from it versus borrowing against it. You know, we want to get in the weeds there, but. And they're using that as a source of passive income in this scenario. What I'm talking about is instead of doing a whole bunch of that, which you could also do or you could do in combination, we're focusing on using the financial energy of the vehicles to produce and create that cash flow versus borrowing against and accumulating a giant loan against insurance contracts separately and then having this other financial energy disappear to third parties. So we're really looking at a combination of those things. So in this scenario, we didn't get into it a for the sake of time. And also it gets quite complex. We're not really keeping it simple at that point. But roughly speaking, by the time that this couple reaches about 95 or so, they're going to be looking at somewhere between 400,000 and 800,000, depending on where rates are, rates change, rates shift. So all that could have an impact, but they're going to have an outstanding balance of loans on the policies that they have or in some other mechanism. Now, when they pass away those loans, and most likely they're not passing away together, one's going to go before the other. That's typically how it works. I know for me, based on statistics, I'm going to go before my wife. Now, the reason for that is probably because I do a lot of dumb things and that tends to put me in the danger zone more so than my wife. You can ask her about that. But so, so that means there's going to be an impact of a tax free event which would eliminate a lot of those loans at that point. And then there's a run rate on value for the next partner before they pass away. And then if they're building their system well and they're again, they're creating that, that environment that they want to operate in, there's a secondary event in which case the kids who've passed all this money through the system are now being able to recoup all that, that, that capital because now they're also dealing with the estate and all the other values. They got a house to sell, maybe some rental real, maybe a corporation's assets. There's all these other things that are going to happen plus the tax free benefit that remains from the insurance contracts. So I hope that answers your question. I'm not going to give you a specific answer because the reality is it's too dynamic based on what could transpire over that time frame for it for a human being. So give you a range and more. So I want to focus on the concept of what would transpire because if we understand that, all the rest of it we can figure out along the way. I hope that helps.

Awesome. Great job. Thank you so much. Richard. We don't really have other questions. At least the team was really doing a great job tackling them while you presented Richard. But maybe Dan, if you can maybe hop on and see if there's any other questions that you would like to address.

Yeah, we can do maybe one or two more and then I think we'll be shutting her down for the day and, and final check in for everybody. Again, first of all, everyone sticking around. Really appreciate it any, you know, again, last value check in. How do we do today? Scale of 1 to 10? 10 is we hit it out of the park and A1 is whatever. I, I really wish I was doing something else with my time.

Awesome. So Quan has hand up. Go ahead, Quan.

Greg, Juan.

Yeah.

This is a question from Joyce that was in the chat and I think this will help a lot of people too. So if you borrow from the cash.

Value in your policy.

To pay cash.

For your car, there's an interest you have to pay to your policy as well. So what's the difference?

So you're right, 100%. There's going to be interest that you pay to the policy. That is correct. However, you have to start to think about the volume of payments that are taking place. If you go back to the beginning of our example, we were finding we didn't, we didn't have to borrow Anything to go and get the first three vehicles because they were hand me downs. So over about a, I don't know, an eight, nine year period of time, it was pure payments building up for mom and dad.

And then they could use those payments to go buy the next car they actually had to pay cash for. They already had the cash from all the accumulated payments.

Y.

Right. And so that model continues to happen through the bulk of the first 20 years. So they're not really needing to. There's only one or two points in time where they're maybe buying two or three vehicles in one year that they temporarily have to take a policy loan for that purpose for maybe one vehicle. But the amount of cash flow that's happening in monthly payments obliterates it within one year and then they're building back up again. So it's hard to see that when we're looking at the brief spreadsheets that we showed. But that's what I want people to recognize is that, you know, no one's buying all the cars on one day. You're buying at different periods. So that flow of energy, you're going to rapidly replenish any policy loans you take during that time frame in a very short area. Because during mom and dad's working years, they don't need that cash flow from car payments to do anything else. They have cash flow, they're, they're running their life, they're supporting their initiatives in other ways so they're able to amplify the utilization of that car car payments through those 20 years to do other things. And so as an example, they might even say, hey, maybe we haven't finished paying off our mortgage over that 20 year period. What if we took all that cash flow and we smashed out our mortgage till it was gone and now all the mortgage payments that we used to make can now go towards helping accumulate and buy cars on mass. So again, there's not like a one size fits all answer. I want everyone to stretch your imagination and think about the different ways money's flowing through your life. And if you could all of a sudden have.

1000, 2000, $3000 a month of car payments that you didn't have before, what could you do with it differently? How quickly would it accumulate or how quickly would it eliminate a third party debt even if it was a policy loan? Okay, yeah, you buy a car for $30,000, but you get $36,000 where the car payments in one year and you created a car payment schedule over six years. Well, the cars already replenished now you're building six years worth of extra payments. Does that kind of make sense? So it's hard to picture and see that until you really talk it through, but that's what we have to imagine in our mind because that's really what's taking place.

Awesome. On a separate note, the interest they are paying back because they're paying back the policy loans, who's getting that interest? Is it leaving them forever or is it staying in the system? Think, think, think about that for a second. All this interest is coming back to the company that you co own or they co own. Right. So that's staying in a system and that that interest is adding to the profitability of the insurance company and.

Increasing their net worth. So because from that pool of money insurance companies paying dividend which is increasing the overall energy of the policy and it is just getting better and better versus paying interest to dealership where you will wave bye bye to this interest and never see it again. Perfect.

And maybe quantum. I don't know if we answered or hopefully we targeted that question for that individual. I'm not sure if maybe they can reply privately or something that they did that but. So anyway folks, this was a lot of fun. Thank you for letting us have an opportunity to do this. This is something that, that I've wanted to kind of talk through and display at at a bigger format for many years. Just haven't really gotten around to doing it. So I appreciate everyone's participation again, you were an amazing group of attendees tonight. Thank you. Thank you so much for your avid participation. If you haven't done so already, make sure you schedule an appointment with your coach, check in with them, share with them what you learned in this session. Talk if you haven't already done, get a copy of the book, becoming your own banker, you can head over. Get a copy of our brand new book Don't Spread the Wealth. Again, it's not official release yet but it is available. You can access it now. You go to don't spread. Don't spread the wealth.com and sorry, don't spread wealth. I should say don'tspread wealth.com and you can get access to that and we'd appreciate that as well. And for everyone in attendance, just thank you for the commitment of your time and to our team. Thanks you guys as well. We're awesome. We apologies for some of the tech delays. I know I disappeared off the screen and had to pop back in a couple times, but that's the the advent of wonders of modern technology. And thanks to everyone at Zoom that allowed us to even be able to do this in the first place. So here's to an incredible rest of your evening, everybody. And here's to a profitable future financing cars.

Awesome. Thank you so much, Richard.

Thanks, Roman.

Appreciate you, everyone.

Have a great evening.