How I Discovered The Secret Banking System of The Wealthy

Welcome to tonight's session. I'm going to be sharing a little bit about.

Personal Journey. I'm going to be sharing about basically my. My life, my last 14 years of implementing and getting started with this process we call the infinite banking concept. It's something that I've embraced many, many years ago. It started in August of 2009 for me when this book that actually in this picture you can see my son Nathan is holding up. Becoming your own banker. That is my copy of the book. And he basically doesn't. Well, he knows now he's got a copy of that book signed by Nelson, the author, but he hasn't had a chance to. Until he proves himself that he's not going to destroy the book, he won't get his hands on a copy of it. But in 2009, that book came in and it completely changed and revolutionized everything in my life. And so everything that I'm going to be sharing with you today is direct and it's real and it's coming from my own personal life experience. And you know, there's an old saying called open kimono. So that's kind of what's going to happen today. I'm really just going to, you know, give yourself a look at what's behind the curtain on everything that's been going on for me. I'm going to share a couple of stories over the last 14 years about how not only I've used this system, but the reasons why I've needed to use it in some of the things that have happened over my lifespan. So I think it'll be a great learning opportunity for everybody. So we're going to do a couple of very basic housekeeping items here as we get started. So just to kick it off, I'm going to share essentially today you're going to get three stories out of my life from different points in my life. I'll be talking through some challenges that I've experienced and how I've had to overcome those challenges and how they kind of circle back a little bit to the infinite banking concept. I'm going to walk through building my system, what I did to start it, how it expanded over time. I'm going to summarize where that system is at now today, as of, as of this month, I'm going to give you up to date numbers on that and I'm going to talk a little bit about family banking meetings, which is something I've incorporated. In fact, the picture on the screen right now is from about April, I believe. It's April last year where we rented a house in Vegas with a pool. And this literally is the picture from our family banking meeting that we did last year. So, um, really, really good. And then my goal is to have us done at a reasonable time. Once I get through all these stories and these things I'm going to share today so that we can open it up for just general Q and A and, you know, we can kind of do some, I guess, rapid fire or we'll do our best to tackle as many questions as we can, you know, for that. That might be on your mind based on what we do here today, but also maybe some things that have, you know, been rolling around in your brain prior to coming into the session today. So we'll do our best on that. And thankfully I've got an amazing team with me here today to help assist in that. So on the zoom, you will probably notice there is, you know, several, you know, depending on how you've got the display set up, there should be a box that kind of looks like two speech balloons, something like that for Q and A. Please, please, please utilize the Q and A box. If you have a question, place your questions in there. The chat function, which is also available where you can engage with, you know, with, with everyone else that's in the call. That's where I'm going to be asking some questions and getting you to respond through some answers through the chat. But if you have a question, please make sure that you put that question in the Q and A box. It's very important. And then our teammates that are on the call today can help tackle and answer some of those as we go through the session. Okay, so what I'd love to hear first off, for everyone, we got a good idea where people are at. I'm seeing Victoria, Niagara Falls, Calgary, Edmonton. Go, you know, go Oilers. Sorry, don't. Don't hate me, but big Oilers fan and, you know, so wherever you're coming in from, we've got an idea where people are at. I would love to now find out if you're new. So if you're new, if this is your first time attending one of our webinars, type a Y in the chat box. If you've never attended a session of ours before, you've never been on a webinar or one of our live events, please type a Y in the chat box. I just want to get an idea for who's kind of new and hasn't really been a part of some of our stuff before. Okay, so I'm Seeing a fair number in there, maybe. Niffer, give me an idea. Roughly how many do you think are coming in that, that are hitting the new button?

Well, we've got probably close to 20 on our way up to towards 30 of like new people. So welcome.

New faces on our webinars. Welcome.

That's great. Thank you very much for, for sharing that. So if this is your first time attending, the next question I would have is, are you familiar already or have you heard of or have some idea, maybe you've watched some videos or something about the infinite banking concept. So if you've never heard of the infinite banking concept, you've never seen the COVID of this book before becoming your own banker, and you have, you don't really know anything about the concept. Type, type an N in if you're not familiar. If you've never, you know, never seen this book before, you don't know what the infinite banking concept. So you type an N if you're, if you're completely new. Okay. And then Nefer, just kind of keep me up to date on how many people might be jumping in there.

No, you know what? We have some new ones. Absolutely. We love to see that. We want to be able to educate as many people as possible, but very few. Okay, so we've got a little bit of an experienced crowd here tonight, so.

Awesome. Excellent. Well, thank you for that. That's going to be good. That helps me frame up what we're going to cover today. So for those of you that are brand new and it's your first time, but also those of you who haven't either seen that book before, read that book, aren't familiar with the concept, we're not going to be going into a deep dive of what the concept is tonight. So we're not going to be going through a long explanation of what it is. And, and going into that background today is all about, you know, real world stories. And the real world stories just so happen to be mine. So what you're going to be learning is about how I built and created my own system implementing this process. And so we may not cover all the questions that you have, but make sure that you check in with either. Who invited you here, a coach on our team, using that Q and A box as we go. If there's some things that are unfamiliar and if you aren't able to get your answers because you're new and you want some more after we're done the session today, first of all, stick around for the Q and A. But secondly, we have Tons of resources available for you to continue your journey of learning, including our podcast channel Wealth About Bay Street. We have our Bankers Vault YouTube channel and a ton of other resources. So we have lots of opportunities for you to get that information. Okay, great. So let's dive in here a little bit more and talk a little bit about these stories. So again, these are all real life and what's, you know, might surprise people and I'm really curious to see if anyone else has had an experience like this. But for myself personally there's been about five times over the last year know over a 12 year period, the last 14 years. But in, in about a 12 year period where I was kind of like Homer Simpson here, just smacking my face against the, the, the counter. And in those periods it was roughly three to six months and they varied depending on the period where I barely made an income. I had a transition, a major upheaval in my life, something that came up where income was impacted drastically. And if you think about that over a 12 year period of time, the total amount of time is roughly 20 months. So that's not quite two years, but it's getting pretty close to two years. That's about a 17% period of time over a 12 year period. So that is a little bit about an introduction into the stories that you're going to see. So some of these stories I'm going to share with you today, and these are just three of many that I have, are really going to be about those periods and how I was able to overcome some of those challenges and implementing this system and still be able to build my system for the infinite banking concept. Now these stories are in a timeline, but the timeline isn't in order. I just want to prepare everyone for that because there's a rationale to that around how it ties into my family system. But I think the stories themselves, hopefully you will, you will enjoy. So I do want to give everyone fair warning. There's going to be excessive use of GIF images as we go through today. So hopefully everyone will be enjoy that to some degree. If you find one that you really like and it puts a smile on your face, make sure you put a smiley face or a happy face in the chat box for everyone else to see. Now everyone, I think on this call, we're all looking to have success in different areas of our life and success may mean different things to you. These are some of the bullet words that we see when people think about success. For me, the two that are on here that connect the most is significance and legacy.

The.

These are the ones that I feel are the most connected to me. And so myself and building my system and thinking about what I want to create in my life. These are kind of some of the words that stick out for me as I go about certain aspects of my life now, I would imagine, and I'll ask everyone just to let me know.

Life probably happens to everyone. So if you've experienced some life coming around and maybe, you know, kicking you in the shin, doing things that you didn't particularly appreciate, maybe not working out always the way that you wanted, go ahead and type a Y in the chat box. Niffer. Let me know if we've got anyone who's experienced some life events here on the call today.

Oh, yes.

Lots of wise. Lots of wise. Lots of life is being had.

So the good news is that we're all in this together. Okay? No one escapes getting through life without a couple of battle scars. And these stories I think that I'm going to share are going to be around that. And you may be, you may resonate with them to some degree as you think about, you know, your own life and your own circumstances. So I think it's really important that we have to have focus on a goal and a target. Just like throwing darts at a dartboard, if you don't know where you're aiming, it's pretty hard to hit the target. I've always been a very focused person and I've had a goal and a target. And since I read this book, Becoming youg Own banker Back in 2009, my focus and my target shifted. And I knew beyond a shadow of a doubt that after reading this book, which completely changed everything in my life right down to my very core, that I was going to be laser beam focused on building my family system so that I could create a legacy and I could have a layer of significance through that legacy, through this message and that medium, by, by doing what we're doing today. Being able to facilitate this session for everyone that's in attendance is part of the. The feeling of significance I'm hoping to create in my life. And so I'm deeply honored that you're here with us today because it means a lot to me that you're learning and actively looking to grow yourself in different areas of life, specifically around your financial life. So the key thing is that you need to have focus and a target. You need to know where you're shooting from. And this is a great quote by Robert Kiyosaki. It's not how much money you make, but how much you keep, how hard it works for you, and how many generations you keep it for. It's one of my favorite quotes. And this is where, you know, tying into the family banking system is really going to be important. So with that in mind, I'm going to jump into my first story here. Now I like to call these two by four moments. Some may remember the movie Tommy Boy, one of my favorites. Absolutely hilarious. And this scene always stuck out to me. And I feel like we can probably resonate as we see this repetitious smacking happening here, that this is something that's happening to us in life in many, many areas. And that is something that we want to make sure that we, we resonate what they are. We take the lessons that we learn in that overcoming of those, of those situations. And I think you're going to see that a little bit as I go through these two stories. So story number one begins in March of 2017. This story is actually in two parts and it begins actually right here. So what you can see is a picture of a ultrasound. Now this ultrasound is of my daughter Nora. My wife told me that we were going to be blessed with our second child, Nora. And absolutely amazing and wonderful news. And it was shortly there after that that we had to go in actually to the emergency room. We had some ultrasounds and some other testing done and they came back and notified us that she had what was called a subchorionic hematoma. That's a pretty big word. I had to go actually look how to spell that word. And through that experience it was really. Well, I mean it was a real gut check moment for us. And they basically indicated, at least the first doctor pretty much was indicating that we needed to be prepared to lose the baby.

Following that we, we had some follow up consults. And the result of this that we learned, you know, these things are measured in the size of small, medium and large. They keep it that simple. Small, medium and large. And what we had was on the large scale. Once it gets to that scale, it tends to have more potential problems and pitfalls that can come with it. We learned in a follow up test that there wasn't just one of these, but there was actually two of them. And both of them were on the scale of low, medium to, to large. They were both large. When we found that out, I can tell you it was a, it was an epically difficult period of time. And the result of that is, well, I mean we, we had to rethink some things and Our regular doctor had indicated that my wife really should be on, not an official bed rest, but she really should be on, be very careful about what she's doing as far as, you know, how much she's lifting and that sort of thing. So the idea of bed rest was introduced. Although it wasn't exactly official, we did need to make sure she was monitoring how much she was lifting. Now here's my son Nathan. At the time that this was going on, he was right around 15 months of age. Here's a picture of him standing on a box of CDs at that age and, you know, being a young boy, our firstborn child growing pretty well. Despite the fact that he didn't want to eat anything, he still seemed to grow really good. Um, he was getting pretty heavy. You know, by the time that we were at the stage of the game, he was probably roughly between, you know, 21 to 25 pounds. And with my wife being told basically she, you know, she probably shouldn't be lifting more than a carton of milk. Nathan was bigger than a carton of milk and he was growing. So that created a lot of challenges. Now, I'm curious for anyone on the call, if you have kids or grandkids, go ahead, type a Y in the chat box for me.

Yes, yes, yes, yes, yes. We got lots of big families here.

Lots of big families. So, you know, I think all the parents in the, in the session here, you can resonate with how something like this could be a real impact in your family life. Now if you have a, a 25 pound kid and at the age of 15 months, what does it, what does a young kid want to do? Who do they want to spend all their time with?

Type an M for mom and a D for dad.

Oh, there's a lot more. Well, no, there's more ants.

Well, in, in my, in my household it was pretty much all mom all the time. And so it was really heartbreaking because she to some degree was limited on what she could do, which she didn't. She didn't want to be limited, but we had to be really mindful and prepared for, you know, again, not aggravating her to any degree because of the, the potential danger to, you know, the pregnancy. And well, when that happens and you want, you have a kid that wants to be picked up pretty much all the time. Like, you know, every waking hour of the day, it's up, down, up, down, up, down. That meant that someone else needed to step in and that's someone else that ended up being me, which Also meant if I'm focusing a lot of my energy there, then I'm not able to focus a lot of my energy on my business and meeting with clients, which then generates into not growing a great income. So can everyone kind of follow along and imagine where. Where I'm going with this? It was a very stressful time. The result was it was about five months, roughly where we had very little income coming in, and it was hard to maintain, you know, working with my clients and doing those kind of things. Thankfully, everything worked out fine, and baby Nora joined us in September of 2017. And she is, you know, absolutely incredible to the point where, you know, here's her last year, having a good time, doing some dance moves, and she's quite the character. So we're eternally blessed. She's our little beautiful miracle child. And thankfully, that whole experience is behind us. But the impact of going through that financial timeframe and the stress built around the whole circumstance, the emotional turmoil, that was really, really difficult. And it takes a lot to bounce back from that. So these are some of the things that happen in my life. And there's several of these types of indicated stories. This particular story goes a little bit further than that. So part two of this story just kind of adds a little bit more, I guess, context. Now, everyone here on the call must earn some kind of income. For most people, when they earn, their income goes in their bank account and it's done. It's a completed transaction. There's no. There's no additional components to it. That is not the case for every industry. So just for a question asked the group here, has anyone ever experienced type of wine in the chat box? Have you ever experienced being paid for something, earning the income, receiving it, and then years later, having that income taken away from you because that you. From the job that you earned the money, type of. Why, if anyone's ever had that happen to them before.

We'Re getting some yeses.

A couple people, yeah. It is definitely not very common. Most people don't have a circumstance where that happens. However, in the industry that we're in, which is in the insurance industry, that does happen. So a couple of months, three months after my daughter was born in January 2018, I had what our industry refers to as a chargeback. Okay. A chargeback is a situation where a policy that was in place is no longer in place. And depending on what time frame that happens, whatever dollars that I earned has to be paid back to the insurance company. Okay? That's how our industry operates. And in this particular Situation, the amount of the chargeback was around $20,000. It wasn't a little bit of a number. It was a pretty big number. The funny part is, and I don't know if it's funny, but in retrospect, maybe it's a little bit funny. This particular contract had been in place for 57 months. That's almost five full years. The particular situation with this policy at the time, which I'll expand on a little bit more, was that there was a chargeback for a hundred percent of every dollar that I'd earned. It was actually. It was actually two different contracts up until the 61st month. So I was about four months away from there no longer being a chargeback. And so this is a situation where it's very unfortunate, but it's also was to a large degree out of my control. Why do I say that? Well, let me expand. My client just so happened to have a very successful plumbing company in the. In the general vicinity of the city of Edmonton, which is where I'm from. And in fact, this gentleman, we'd become good friends. He'd been to my house a number of times. He attended a lot of our events. He'd referred some individuals to me and I'd referred several individuals to him. The situation here is we were actually meeting and having discussions about expanding his system, adding more contracts to grow his own, his own situation because he had started a brand new business. We had a meeting in person at my office In November of 2017, just shortly after my daughter was born. We had another really long meeting on the phone in December. We. He had two policies in place. One of those policies was six years old, the other one was five years old. And both of those policies were at a point where they were growing greater than what he was putting into them. The problem was something had changed with his behavior. He wasn't doing and listening to the things that we were coaching him to do. He was letting himself, you know, his business, the new business and his other business get, you know, get him so busy that he wasn't paying attention to what was happening inside of his. His policy system. Shoot forward to January of 2018. Well, everyone probably knows that in 2018, in Canada, around October, marijuana became legal. Prior to that, it wasn't. And this particular gentleman, he had actually started the beginning phases of building a dispensary, but he was hitting the ground running a little bit early. And there was other people doing it as well. He wasn't the only one. And he had actually had the RCMP come and Check out his facility. He made sure everything was on board with them. He had lots of meetings with people, including meetings with city officials, and no one told him specifically that he couldn't do it yet. In January of 2018, near the end, they basically shut down the facility and seized everything. And it was shortly after that period of time where this whole circumstance happened and that led to the chargeback situation for me. So something that had happened five years previous, almost six years pre. Almost five years previous. Now this gentleman, because of his own changes in his own lifestyle and his behavior and a new business, could no longer continue on with the thing that we had built. And it had a direct impact on my family life is kind of the situation. That's sort of what happened. So it was a pretty impactful experience. I went from having a difficult time earning income that year because of the pregnancy to then having, you know, back to earning income and trying to rebuild and re recoup that big hard year to now almost going backwards again with a large unexpected expense right before tax season as well. So, you know, turns out I, you know, called him. We had lots of voicemails, lots of messages, sent him registered mail, did everything we could to reach out to the individual. I found out later that he had gone out of the country. He ended up going into a bit of a, you know, he had some emotional things that happened. He went into a bit of a depression, I think. Thankfully he's better, he's fine. He. He's returned and he has a new business. You know, we don't speak anymore. But he did reach out to me about two years later and apologize, which I do appreciate. And so I hope he's doing well now. But nevertheless, that. That was the. The real life impact that happened to me in my story. Now everyone knows that you should have an emergency fund. We all know that that's important. We should all have one built up. Where you store the emergency fund, I think, is what's important. We're going to talk about that today. But the best laid plans that we might have don't always come to fruition and you can't cash someone else's good intentions. So this. This gentleman who was planning on growing his system and we're having good conversations about. And then everything flipped. 180 degrees was quite a surprise in my life. It really made an impact for us in that time frame. Now, the next 2x4 moment I want to talk about as we go into our next story is.

It'S. It starts a little bit earlier. So our first story was in 2017. Here we're now rewinding the tape a little bit and we're going back to 2014. Now this story actually takes place over about a six year period of time and it's actually a real estate story. Now this is a picture of my wife, my beautiful wife Heather and I getting married in Jasper. Now hopefully everyone's had a chance to visit Jasper. If you haven't had a chance to visit Jasper, I highly encourage you to do it. This is a picture taken out of Jasper Park Lodge. It was an absolutely beautiful day. It was an incredible experience. One of the wonderful things about Jasper of course obviously is its beauty and the mountains and you know, all that amazing stuff. But it does have this other thing that comes with it and that is a price tag. So when you visit Jasper things tend to cost a pretty good dollar. And additionally when you pay for a wedding there, let's just say that it's, it's not what I would, what I would consider a budget conscious wedding decision. But that is what was important to her and I and to our family. And so we figured out, we, we figured out how to make it happen. Now with that experience, of course there were several things that happened to me in the year of 2014. So first off we had our wedding. Now thankfully and much appreciatively my in laws and you know, through, you know, gifts and things that you do get on wedding, there were several people that contributed to some things. So we were able to bring that cost down. But nevertheless the cost that we still had to incur was around 20,000. After everything was said and done I had a large backlog of back taxes because a previous, an accountant, a previous accountant had had a heart attack, disappeared, had to sort through all of that, took a while, found a new accountant. That one couldn't clean up the mess. I had to go find another one. And over a period of about six years I went through this huge turmoil with some business changes where I'd created a pretty big mess and a nightmare. Took a long time to clean that up and including the accountant bills and everything, you know, I had a large tax bill to take care of so that had to get taken care of and I needed to get that taken care of so that we could buy a new family home. And I also needed a down payment for that home, which is where we're going to get to. So you add all those things together and that's about $130,000 worth of capital just in 2014 to go and solve a Few problems. Well, thankfully I had a rental property that I was able to refinance in that scenario and that helped take care of a large chunk of this. But it certainly didn't solve all the problem. I still had to, you know, do a lot of it out of out of savings and out of out of income. Just so happens where I keep my savings is in my family banking system. Now this right here is the property. Now I grew up in a small farming community outside of Edmonton. A little place called Hales, Alberta and beautiful, wonderful town and community. And I loved, you know, the idea of acreage and farm lifestyle, that independence, the, the peace of mind, country, fresh air, hearing the birds chirping, all those wonderful things. And I really believed and thought that's what I wanted. And it was a big dream of mine as for as long as I can remember. And my wife also was really invited into that dream. So we ended up finding this piece of property that was quite close to the Shore Park, Alberta. We, we found it literally right after our wedding and we ended up making an offer. And it was three and a half acres, beautiful land space, house. Could have used a few things of course, but it was a perfect location, perfect plot of land. It had some really awesome features to it. What ended up happening, of course, is that we put a lot of money into this particular property. Now anyone that's owned an acreage and an older home, I'm sure you can imagine some of the things that happen here. But so you don't have to imagine all of it. I've gone ahead and I've broken down a few of the numbers for you. I've crunched them in advance. In 2014, so we made our offer and had it accepted in August, right after our wedding in 2014, we moved in. Purchase price was about 630,000. The mortgage 580 and we put 10% down. So after that and closing costs, it was about 65,000 that we had into the deal. Okay. That's how much capital we had to come up with to get this done. Now we sold that property because we now live in Chilliwack, British Columbia. We've moved. I'm going to get to that story in a moment. And in that experience we ended up selling this property which was basically during co during the COVID year, the lockdown kind of experience. And we had some challenges unloading the property due to the timing, due to a lot of people didn't like the way the kitchen layout, you know, that sort of thing. They love the land they love the location, but they didn't, you know, feel. Feel as in alignment with the house that we did. So after everything was said and done and we had our payout penalty for the loan, some. Some realtor fees, thankfully, I was able to negotiate that pretty good because I was a realtor myself. The end result is we walked away with 44,000. Now, there's a lot more that goes into the story, and one of the things I want to highlight on. I have an asterisk here around the. The COVID situation. Well, for the payout penalty. When payout penalties are incurred on mortgages, generally there's. There's two primary ways that they're calculated. It's usually three months worth of interest on the. You know, on the overpaid balance, or it's something referred to as an ird, an interest rate differential charge. And of the two of them, usually the IRD is the nastiest of them, but it only is triggered in certain circumstances. Now, right now, we're in an environment where interest rates have skyrocketed. Everyone's familiar with that. But if we reflect back and we go back a few years, roughly around I think it was 2016 or so, give or take, there was a period where rates were rising then, and. And they were starting to climb up at that point. So we had actually, for the first time in a long time, in all the real estate I've owned, I actually locked in a mortgage because, oh, I'm never selling this beautiful acreage property. We're gonna. We're gonna be here forever. Why would I ever get rid of it? Lo and behold, life does throw you curveballs. And because I had actually locked in. And then during COVID to stimulate the economy, they dropped rates again. I was now in a position where I was at the IRD charge. So when I phoned to check out the payout penalty, when we were first considering selling the property, the. The number was. It was about one third of this $9,000, about 3,000 bucks. By the time we actually sold because of the impact of COVID the payout penalty had had tripled, roughly speaking, in that scenario. So just to give you some context about the way things are unexpected and also around how banks tend to have a lot of control over things in our life. Now, we did a lot of things to that property. I built a salon for my wife. I built a huge deck out front. Right before we sold. We did a bunch of renovations on the interior. New carpet, new stairwell, new banisters, electric flooring, new tile. So I, you know, built a closet in the basement, you know, a whole number of things. Of course that all had a cost to it during the experience of having the acreage. Of course I needed to get a blade for a truck because we got a lot of snow and we had a big driveway. Here's kind of a rundown, here's a little bit of a recap of all the different things that we spent money on while we live there. And some of them were required just to be able to sell the property, including the, the update that we made to the septic system so that we could be able to market the property for sale proper, properly, I should say. And coincidentally on this, I had two furnaces, an air conditioner, hot water tank, a new pressure tank and a pump. All those things were added, and they were added by the same plumber that I mentioned who was my friend and a client of mine who ended up disappearing to Mexico. And we had the charge back on, on the first story. So it was the same guy that did all that work in that property that helped me out. Anyway, you can see there's an awful lot of, awful lot of things that went over in about a six year period of time. Now when you take the original down payment numbers and you add all these additional costs that I put in, there was about $145,000 of money of our dollars that went into the property. When we sold the property, we got 44, 000 out. So I'm not a math wizard or anything, but I would imagine you guys can, can help me and, and see where the math landed. This was what was missing for us out of that situation. Now life is life. I, I have no regrets on it, but what it is, is a, is a good and a powerful story. Now it goes a little bit further than that. We need to consider what else happened during that, you know, six year period of time. Well, we had to make mortgage payments, you know, and the mortgage payments, it was just shy six years, was 70 months. That totals $185,000. So that was the flow of money, the financial energy, monthly going out of our hands over to someone else's bank. It does not include the property taxes or the home insurance. When you have an acreage that's farther from a fire, you know, a fire hall, your home insurance rates are up a little bit more as well. Just, you know, so, you know, so there's certain periods of time where you have this face because you just can't believe some of the things that you see. Well, if we take a consideration here and we look at the $185,000 of mortgage payments that I made over that time frame. My wife and I, we paid down, obviously we, we paid down some principal on that mortgage. But if you subtract the principal and you just look at the interest component was $103,000. Well the interest rate was very low. This was during record low interest rates still. And the interest rate wasn't what mattered. What matters is volume. What's the physical amount of money that's going to flow through your hands and out the door to someone else's, someone else's account that you never get to see again? That's the key takeaway, the teaching point here. And if we do the calculation, 103,000 over the 185,000 of payments, the total interest volume was 56%. In other words, 56 cents of every dollar I paid on a mortgage payment went to interest in this scenario. And at the time I had a rate at two and a half percent. And when I locked in and that 3.1% on this very mortgage. So the rates was actually very good at that time. Now let's take that one step further. $65,000 went down. I had the upgrades plus the, the, the payments of the mortgage. It says interest, but it's actually the mortgage payments. The total amount of energy, financial energy that we contributed to that situation was about 330,000. We received $44,000 when we sold the property. So in essence I got 13% of all the financial energy back. I'm missing 286,000. Now the question I have for everyone on the call, type this in the chat box is who got all the money?

Let me know what we're coming up with there.

Niffer, thanks.

Yep, that's exactly who got it. The banks or someone else?

Other people, someone else. And for the most part it was the bank. Now I don't own stock in that bank, I don't co own that bank. So I didn't receive any benefit from that other than they, they had money. I needed to tap into their big pile of money in order to get the property. So they did me a service and a favor, but I paid for the Service. I paid $103,000 for the service over a five year period of time. Okay. Now in my opinion you should have the money in that, this scenario. I would have much rather had the money for my family. And I think that's what you on this call should be looking for. We want to position you so that you can be the one to benefit from that flow of financial energy. And I am betting from, in a large, a lot of areas of my life, but this was one that I just wasn't able to tackle just yet.

Now.

Perspective is very important. And so if we consider this and we look at the down payment and the principal pay down, that was the actual, like, you know, initial capital that should have been where assuming that the market was flat and never went up or down, that would have been, at minimum, the equity I should have had. And so, just based on that, I only recovered about 30% of what the principal is. To me, this equals something. It's a lack of control. It's a lack of the ability to determine the outcome. I didn't control the real estate market. I didn't control the impact of COVID I didn't control the interest rates and what the bank of Canada is doing. These were all areas that were outside of my control. Okay. Sometimes in life we kind of feel like we're going one step forward and then we're taking a whole bunch of steps back. Usually we don't have this smiling grin on our face when it's happening. Okay, now a question I have for everyone is, do you think or do you believe that you can become your own banker for all of your needs overnight? So go ahead, type a Y for yes or N for no in the chat box.

One person, yes. Everybody else looking. So far, it looks like, no, not overnight.

No, not overnight. Okay, so I'm going to go to Nelson Nash's book here on becoming your own banker on page 48. This is called expanding the system to encompass all income. And one of the things that Nelson says here is that, let me just find the right spot. He basically indicates that it will take the Average person approximately 20 years to build a system where you could get all of your income to equal premium. And ultimately, if all of your money runs through someone else's bank, if you own and control your own banking system, wouldn't it be logical to have your money run and flow through your own system first? And that's fundamentally what we would like to see happen. I'm not in a position where that's happening yet, but I am getting a lot closer. And I'll share that with you in a moment.

Now, really funny. I was working on my powers, reviewing this PowerPoint earlier today, and it just so happened that a Facebook memory showed up for me, and I took a screenshot of it on my phone today. I'm like, I got to add this to my slides. This is a post that I made in 2015. Nine years ago, on the exact same day. April. April 23rd, nine years ago. And this. This says. I'll see if I can get my highlighter here. The cost of using your own money is increasing while shareholders are being showered with huge dividends created through profits. It's the banks are suggesting that consumers might being hit by added fees to make up the difference in the profit because banks are not making as much money with low rates and they're looking for ways to increase their profits. Now this came out of an Edmonton newspaper. I don't remember which one, but my question for you and everyone in this call. Did any of you get a letter from your bank telling you that your fees and your day to day banking fees were going to go down because interest rates have gone up? Anybody receive that letter?

I certainly didn't receive that letter.

No. No one's received that letter.

I do remember receiving letters several years ago about my fees going up. Does anyone remember getting some of those several years ago?

Okay, so I think we can all agree that's a situation where we don't have a lot of control. And if they're telling us that they need to raise fees because they're running low on profits, yet they're record breaking profits, that seems a little bit mismatched and a little bit disingenuous in my opinion. And yet if all of a sudden they're able to make a lot more money in theory because there's higher rates, which I actually don't really believe is the case, then shouldn't it make sense that they should give us some kind of a discount somewhere else? That's not what's going to happen. So the result is that we have what's referred to as cost creep. The costs keep creeping up on you slowly. And when a change in the future happens that should. Should replace or.

Or.

Or that cost should revert to a previous amount. It never does and we're just stuck with it. It's kind of like the boiled frog theory. You know, you can slowly boil a frog by just turning the heat up is the. The way the adage goes. Okay, so just very interesting. Now it's not all bad in my opinion. That money that I spent on, you know, not. Or not returning, not getting the money back from selling my acreage was the best $100,000 plus that I ever spent. And here's the reason why. We have an amazing and unbelievable life where we live now. We made a lifestyle decision. I knew I wasn't going to get the money back. Made the decision anyway because we wanted something much more. We exchanged value for a lifestyle. I live a two minute walk to this beautiful river right here where my son is playing. This is overlooking our neighborhood, beautiful mountains. This lake where I paddle board regularly is a 10 minute drive from my house. We have an unbelievable lifestyle. And I recognize I paid the cost for that lifestyle to make that change. And I would, I would make that deal any day of the week because of what it's given our family and memories and value for our lifestyle today. It was worth it. Okay, the key thing is we got to come back to focus. During this whole time frame, I kept building my family banking system. I'm going to share with you exactly how I did it. Over that time frame, I had a focus on it. I never lost sight of that. And even though it was difficult and was hard, I kept my intentions clear about what it was that I wanted to. Now, the next story, the next two by four moment that comes up is a life transition that happened in 2016. Now, this was a major transition in my life. I was, I was shifting from, you know, one one entity where I was conducting business to another. And my son, my firstborn, was born in 2015, December. And this is really just a few months after that, six years after starting working with a company. And I put a lot of energy, invested time in with the company. This is a picture of me conducting one of the very first presentations that we ever did around this concept of infinite banking, taken in January of 2010. So this is going a long ways back over the time frame of the six years I spent with this company. And there was some wonderful and great times. We did approximately 75 events that I was involved with. There's probably more, but about 75 or so that I was involved with. We served and educated and taught about 1600 or so people over that entire time frame. We had a lot of fun doing it. Very similar to what we're doing here on this webinar today, only was in person. But there was a point where creative differences were just becoming a little bit too big to deal with. It was time to make a change and to make my transition. So I decided that I would go fly solo. And of course it's a big transition to make because there's a lot of unknowns in that situation. And being in the insurance realm, here's where some of the unknowns are. Well, my son was born in December 2015. So come January, you know, I'm still able to earn an income. Everything's going well. I'm making the decision that I'm going to transition and move things on. It's. It's not. Something happens overnight, takes a while to come up when and make a plan as to how you're going to do that. So come February, I was spending a lot of my energy and my time thinking about how I'm going to get this transition done. And I wasn't do spending a lot of time working on generating an income. Unfortunately, that's just the way that things worked. There's a lot of moving parts that needed to be done when you're licensed in an industry. I gave my notice in March, and as of that moment when I left and transitioned, I could no longer conduct business and insurance until I had my license set up in a new location so that I could begin talking about insurance again. That process took longer than I expected. It basically wasn't completed by the end of March or, sorry, April, I should say so. March, April. I really couldn't even generate an income. I wasn't. I wasn't technically licensed and allowed to do that. So it wasn't until May that I was able to start picking the game ball back up. And at that point I could start reaching out, contacting clients and, you know, speaking to people about what it is that we teach. And it really wasn't until June where I was able to start seeing some money roll in. Now, I don't know if anyone knows or not, but in the insurance business, you know, it's not like, like an electrician or a plumber where you go in and you fix the thing that's wrong or you complete a job, you send a bill and you get paid right away. This is something that can take quite a long time. There's a lot of things that you don't, you don't realize how long it takes. And often there's people who, for whatever reason, they might be uninsurable. And if that's the case, you might put a lot of work in, but you might not get compensated. This is just the nature of the business that we're in. And it's fine. It's the way that it is. I love what we do. I'm very happy with it. It's a. It's one of the most incredible blessings that I've ever experienced to be a part of what we do. But it doesn't come without challenges, and these challenges are real. So for those of you that are brand new, you probably wouldn't know These things. And so this is just part of my life and my life experience. The result is this was a transition where it was a very difficult income time during that period.

So four to six months or so, very little income. You got to build everything back up. You got to get policies and underwriting. It might take one, two, three, maybe four months even before they produce an income later on. I had a newborn. It's my firstborn. We didn't know what we were doing. We had to buy all the stuff that you need for new kids. How did I survive this whole experience? I used policy loans for my system. I was constantly using policy loans, dipping into my emergency fund, my reserves, which I store in policies, whole life policies that I have for my family system to help me get through all these lean times. They were there for everything that happened. Okay. Now in 2016, after these major changes happened, come June, I was able to go get. Go to work, get like hardcore, get really focused. And like, I had to crush it. I worked like a rented mule. I was just going, going, going. Lot of late nights, a lot of sleepless nights. Missed some time with my newborn son because I had to make up for all the lost time. I had to, I had to, I had to make up for past decisions to be able to put some money in the bank account. The good news is in the new situation, I was able to earn a little bit more, you know, on a per situ, per case scenario than I was previously. So that helped quite a bit. It helped actually enough that by the time that 2016 was done, I actually ended up having my best year ever. So in that last six months, I crushed it. And I didn't know that was going to happen. It, it's. Sometimes the world just makes things work out for you. I do think the effort I put in certainly helped, but the reality is I was able to add three more policies into our system. I doubled my income from the previous year in that last six months. And that was incredible and a huge blessing. But it wasn't without hard work.

So how do we grow the family system? Well, number one is that we kept our mind focused. We kept our mind focused on what it is we wanted. We knew that we wanted to grow. So in 2016, my system started the year at $14,000 a year. What I was depositing, what I was putting into premium in the policies I had at that stage. By the time that the year ended, I had increased my system to $40,000 a year. That's a huge jump. It's almost three times it's almost triple the amount. And the only reason I was able to do that is because the last half of the year was so good because I had doubled my income. Well, I wanted to more than double the size of my family banking system because Nelson Nash taught me. The author of this book, becoming your own Banker, he taught me, don't be afraid to capitalize, Richard. You have to put some money in to get the big thing that you want long term because you've got, if you're focused and if you're committed, everything that you want can be yours. But you have to be able to be focused and committed. We went from only having four policies in our family system to seven. And it took us that this was six and a half years after I got started doing this, this work. So it was, it took a while for us to get to that stage. See, the time is going to go by anyway. No one here on the call has a DeLorean. We can't go back in time. The time will go by anyway. And I knew that was the case. I knew that I could never be younger than I am at that moment. And if I could lock things down for myself and my wife and my son at that time, we would be able to create something of tremendous value later on. Nelson. This is a picture of Nelson. And I often asked him, nelson, when did you know it was time to help grow, to grow the size of your family banking system? His response to me was always the same. It was, Richard, as soon as my feeble brain could envision doing so. In other words, he did it as he was always thinking about it, because he was always thinking about it. A path on how to do it always materialized for him. Because of his focus and his intention, he was always able to keep growing. And when he passed away, that's why he had he one time he had 49 insurance policies and he gave a couple away and he had a couple of death claims. And when he passed away, there was 45 that he, that he had. Seventeen of them ended up paying death benefits and 28 are still with his family today, still growing and earning and generating passive income potential. So it's very powerful. So let's get into the family system. I'm going to walk you through what my system looks like in my 15th year as it sits right now. And I started my very first policy and again, this was all I could muster at the time. I, in fact, this was a huge stretch for me. I, I was starting a brand new business. I was only about a year and a half into having my real estate license. I was still trying to get my sea legs under me. I was having an issue with my getting my taxes done. This was the maximum amount of money I could possibly fathom in 2010 that I could work with. And it was probably a big stretch at that time. 15 years later, or almost 15 years later as far as having my physical system in place. It's 15 years since I got Nelson's book. It's 14 since I started my system. 13 policies in place, and they range in size. The smallest one is a thousand dollars a year. The largest one is about $90,000 a year. So they're all over the map Today, my entire system, I can, I can choose to put in about $207,000 annually into my program. Okay? That's how I have it set up today. My minimum required that I, that I must do, and that is required for all the policies to make sure that they stay in force is just shy of 52,000. But 155,000 is completely flexible and within my control. I value control a great deal. So the total I get the privilege to pay is about 207,000.

Now, out of this, the breakdown, I just wanted to give people a little context. So of these 13 policies, four of them, only four of them are larger than $20,000 a year.

Seven of them are smaller than $3,600 a year. In fact, the average is only about $2,300 on those policies. And then there's a couple who are kind of in the mid range. Their average is around 5,000 bucks. So the bulk of my system is in, you know, the larger premiums are in four, four policies. And a lot of them are little ones just built up over time. It's all part of one system. It's like, think of it as, you know, you, you, you have an apartment building and you own all the units in the building. Okay. Same kind of an idea as that. Now, the next thing we should kind of consider are, who are the bodies, who are the life insured people that I have these policies on as part of my family system? Well, I have three on my wife, there's five on Richard, There is two on my daughter, and two on my son. And just in case anyone's wondering, wondering, I did not get the dog insured. We're not allowed to do that. So, no, these, these two are actually on my son right here. Okay, so two on my daughter, two on my son. And then I have a business partner that's insured. And that's the most recent one that I've added to my system. So I'll expand on this a little bit more.

This is a breakdown of how much premium I'm able to deposit into my system on each person based on all those policies. So about 40,000 on my wife, roughly 6,000 on each of my kids. And the bulk of all the dollars go on Richard. And the reason that is, there's several reasons. Number one is Richard's the primary income earner. My wife makes is. Does the amazing and hard job of actually making sure that our kids survive day in and day out. Well, I get to get. I get to get up on a zoom call and have this fun experience. So because I'm the primary income earner, I have the one. I'm the one that if something happens to me, it's going to pose the largest financial impact to the rest of the family. So hence, I'm the one who has the bulk of the premium and the bulk of the death benefit. I also have a business partner who's insured as well, and that's the most recent policy. Now, breaking that down one step further, what does the death benefit look like across all of it? Well, the entire System is about seven and a half million dollars worth of death benefit, while 4.7 of that is actually on Richard's life. I'm the person who has the bulk of this, this death benefit. Okay. Because I'm the one that's the biggest risk if something happens to me. We need to spread that. We need to bring. We need to replace Richard's income if something happens to him. Okay. For everyone else. And of course, I have a business partner, so there's. This is a new policy. And if something happens to him, I have a financial interest in making sure that we can. I can use that capital to help continue growing that business. All right, so that's kind of a breakdown of how everything's set up. In other words, this didn't all happen overnight. I didn't. 14, 15 years ago, I didn't sit down with a piece of paper on a loose leaf scratch pad and a spreadsheet and say, how am I going to build my family system? And I tried to map everything out, projecting into my future. Of course not. You can't build everything overnight, but you have to get started. So what did I do? I started with policy one, $4,219 a year. It was all I could mentally consider possible at the time. And it was even a stretch for me at that stage of the game. And then I kept building. I kept building from there. I also have critical illness and disability on my life. I have four critical policies on my own life, three disability policies on my own life, two critical illnesses for my wife, I have a disability for her. I have critical illness on both of my kids. There's another 9, 400 a year in premium. I put on those things that doesn't show up anywhere in my family banking system, it's something different. Okay. Compounding can only operate when money sits still. It has to stay somewhere for it to grow. It's slow and it's boring. And because it's slow and it's boring, sometimes people get frustrated with it. Well, with insurance, because you can get money into insurance, dividend paying, participating, whole life insurance. The, the vehicle that we use to build this system. It's just the tool. It's a tool in my toolbox and I need a tool to get the job done. This is the most efficient tool. As I deposit premiums, that money is now in the system and it's in constant motion for the rest of my natural life. I'm going to show you more about that in a moment. But in most scenarios, when you're trying to great compounding or putting money into a GIC or some kind of a, of a fund that you want to get growth on, it can only do the job of that one thing. It can't go work for you somewhere else. In the insurance structure that we utilize because of the power of collateralization, you can utilize, you can utilize it as collateral to get access to capital to go and do other things in life. So it creates a multitasking effect of money. It took me 4.7 years to get to my first 14,000 a year in policies, in premium, that was four policies. It took me almost five years to do that. It was on two bodies, myself and my wife. It took me six years to get to 40,000. Seven policies, three bodies. My son had joined us at that point in time. It took me nine years to get up to 137,000 a year. Nine policies, four bodies. Now I've got my daughter involved in the question. In March 2022, I increased my system. I hadn't had a policy for a while. It's been a few years. I was getting a little bit stir crazy. I wanted to get another one and I had to figure it all out. Things were starting to go really well again and I wanted to expand my system. I added three additional policies. The total premium of all of them was about 42,000 it was the largest increase to my system at that, at that point in time, it was about a 31% increase to the entire system. And part of the reason for that is that I wanted to create a policy for my taxes, my annual taxes, I have to pay them every single year. Surprise, surprise. Go ahead, type a wine the chat box. If you guys have to pay a tax bill every single year. And Sierra has no sense of humor about it at all. Okay. And so because of, because of that situation, you know it, I said, look, I want to have the money that's going to go for the tax situation which I'm going to pay. I want to be able to have my family use that money first before I give it to the federal government or the provincial government. So I created a policy just to contain as much of that as I could. I funded the premium. When it's time to pay my tax bill, I borrow from the policy and I pay the tax bill over the course of the next year as I'm saving up for my next year's taxes, which I have to do anyway, I replenish the policy loan and I take extra profits that I generate and I, and I pay the premium and then I'm just able to do that again. So I've now, I'm now using and my family will be blessed by the same tax dollar that I have to give everyone else before I give it to them. That's one way that I've thought differently and changed my thinking over the last 14 years about what's possible. This isn't about a single policy or a single insurance contract or about, about a policy illustration. This is about how we think. The only thing that stopped me from doing that 10 years ago was this squishy mass in between my ears. My brain mentally couldn't comprehend how I was going to able to do it. I knew fundamentally it was possible, but I couldn't quite figure out how I was going to get it done. Well, I figured it out now. I got there. It took me a while, but it's okay. I'm slow, but I'm worth waiting for. The time was going to go by anyway. Does that make sense? Okay. And I was able to backdate these policies to a degree so I was able to get more premium in, into them. It was very, you know, and I needed new, new ones on my kids. So all these things, it was all important to me at that stage of the game.

Now, 13 years, it took me 13 years to get to 180,000. So that was adding those three policies that I just talked about, now I'm at 12 policies, four bodies, and I had a big 31% increase into my system. Well, here we are, we're April of 2024. We're now at the 14 year mark. We're just crossing into 14 years of having policies. 15 since I, you know, not quite 15 since I got Nelson's book, but 14 of actually owning policies. I got 13 of them in five bodies and the system is up to 207,000. So what you guys are recognizing here is a progression. And that progression is happening because what I started long ago. Think about, think about rolling a snowball down a mountain. Because I started in 2010 and I had a little snowball, $4,219 a year, and I added to the snowball as it went down the mountain. Now I have more capacity to continue making it even bigger. Okay?

Now out of that.

Four policies are basically brand new. They're less than, you know, two, two years old, pretty much that represents $70,000 worth of premium or 34. One third of my system is basically new. It's new within the last pretty much 24 months. So a lot of what I'm doing is, is all added very recently. It's, it's, it's been a long process to get here and you know, but it's, it's well worth it in my opinion. Here's a really quick snapshot. I'm not going to go through all this. I'm just going to highlight something, you know, really quickly. I just want you guys to kind of see the start date of these policies. Now these policies, some of them are backdated. This one on my wife, I didn't actually complete it until, you know, March of 2022, but I backdated it to December. This one I only started in December a couple months ago, but I was able to backdate it almost an entire year. So now I've been able to pay two premiums, but it's actually a brand new policy. Okay? Each one has its starting initial death benefit. A couple of them have term riders. There's reasons for that. It's a strategic usage. And then I have paid up additions. This is how the system grows. This is all additional accumulated whole life that's been added to my system because of, because of my efforts, because of the way that I've built it. It's a progression. It happened over time. Okay?

Cash grows every single day inside of these policies. I'm going to show you exactly how much in my system this is an image I had created years ago based on a drawing I used to do in our live events. A policy has a minimum guaranteed amount. It must grow to equal the original death benefit by age 100. Okay, Niffer, can you see this like little magnifying thing bounce up on the screen? Can you see that there? Probably not. How about now? You can see it now.

Magnifying? Oh, yeah, yeah.

Okay, great. Okay, so here, here. By age 100 of the life insured, the original contract has to grow to equal the original death benefit. So for everyone, if you got notes, you're taking a note, you know, taking any notes, I want you to write down by age 100. This is in Canada, it's 121 in the United States, by age 100, the cash value must equal the death benefit. This is the contractual obligation that the insurance company has. So these policies aren't growing because of the market, because of anything that the federal government or anyone else is doing because of presidential elections or it's insulated from all of these other geopolitical events and the turmoil of markets. It grows because it's contractually obligated to grow. The insurance company has no choice in the matter. The cash value, which is your asset, must grow to equal the death benefit. There are no questions asked. It is, it must take place. And as it grows, I get to add these things called paid up additions. This is what the flexible premium allows me to create. I get to control that. And because I can control that, it adds increasing dividends and those dividends get to grow on top and I get to control the impact of how they grow based on my own behavior and my own actions. The result is we create an ever growing machine that is on autopilot as we grow. That's essentially what gets created here. Okay? And the benefit is we have an insurance company that's going to administer the whole thing for us and we get to clone them. So not to get into a lot of details, but it's pretty badass. I gotta tell you. I love what we do. Here is a snapshot over a 14 day period, April 3rd to April 17th. There's a lot of work to get all this numbers and thank, thank big shout out to Lynn, my assistant, Lynn, she's amazing, who helped me do all this in that time frame. In that 14 day period this month, I did not add any new premiums and there were no dividends paid because it wasn't an anniversary date. So I wanted to get a snapshot of a period of time where it Was in between anniversary dates, in between funding premiums. And we're just isolating what took place in that 14 day period of time. My cash value grew on the entire system. $2,082 over that time frame. Guaranteed growth, that's $100 and basically $149 a day. I have an asset that will grow non stop until somebody dies. The only thing that's going to stop it is either me, if I choose to cancel, which wouldn't make any sense, that would be very illogical, or if one of those insured people passes away, it's only two things that'll stop it. Okay? Total and utter control.

Now here's a snapshot of each individual policy and the growth that they had individually over that time frame. You can see that one of them was only about a buck 82. Okay, wasn't a, wasn't a massive amount over that time frame. But each one of these grew this amount over that 14 days. And you stack it all together, there's the almost $2,100 or 141 bucks a day. That's what's happening inside of my system.

What's the minimum premium again? Well, 51, 978. Let's just round it up and call it 52,000. I hope everyone's okay with rounded math. Let's take a little snapshot and understand. Well, If I take 149 bucks a day and I multiply that by 365 days, that gives me the output of my system not including any dividends. Okay? Assuming no more premiums were paid, assuming no dividends were just the system growing by, by contract based on how I've created. My minimum premium is 52,000 which means I've got $2407 extra before anything else takes place. Or the equivalent of about a 200amonth cash flow. Now is that a massive amount? Everybody say no, okay? This isn't an investment. That's not its function, that's not its purpose. This is a system where I store and access money. I put money there, I use the money. I put money there, I use the money, I have something I need. Oh, maybe I had a chargeback, which I showed you a story about. Maybe I need to do a renovation on a house. Maybe I needed a snowplow for my truck. Maybe I needed to do a salon and build it for my wife so that she could do hair from home. Maybe I needed to pay my mortgage payment for several months because I couldn't generate an income because I had to lift a 15 year old baby every, you know, 75 times a day because my wife wasn't allowed to. Are you guys starting to see how I was able to put my system to work throughout my life? Go ahead and type a Y in the chat box if you can. See how I use this over the last 14 years.

Getting a lot of yeses.

Okay, great. I mean this is, this is real life guys. This is exactly what's going on for me. I'm not hiding any. This is, this is the God's honest truth. Okay? Now this doesn't include other things. I have riders, there's some term insurance, some critical illness riders, flexible, guaranteed insurability, very important for kids. Everyone should have that. You know that that's about $2,800 a year that's included in this premium number. Okay, so it's not all whole life premium. It's the minimum premium required to maintain those, those particular policies. Here's the key piece that I really want everyone to understand. I'm trying to keep this as simple as I can and I, I know it might be complex to a degree. I already looked at the in force illustrations. I've already had the dividends declared for this year. I'm going to receive dividends on all those policies. My share of the profitability of the insurance company that I co own. When I get a participating dividend paying whole life insurance contract, I become a co owner with the company. They are obligated, I repeat obligated to share profits with me if they are profitable. Would you believe that insurance companies in Canada are ridiculously profitable? That's a great thing if you own one of them. It's fantastic. So every anniversary date we get to celebrate a dividend party. In fact, I backdated a lot of my policies. My birthday is August 10th and six months back from that is February 10th. So on February 10th I get to have a dividend party on several policies. It's a fantastic time of year. Now I'm Gonna have over $25,000 of dividends declared over this next 12 month period of time. Okay? And if I did not pay any more premium, that would still happen. All right. There's a way that I could make that work that would all increase the size of my system and it would take this number and it would grow it drastically, yet my minimum wouldn't have changed. So even if I did pay the minimum over the next year, I've created a machine that's going to continually grow greater than what I put into it. And it's going to accelerate every time I receive a share of the profits from the insurance company that I co own. Okay. Now these things take a while to get efficient. They're not immediately efficient overnight and I think that that's pretty. I think people are fair to clear that 34 of my system is brand new. It's not even efficient yet. The largest component of my system isn't even efficient yet. It will be very shortly, but it's not quite okay. So I want to give you context on all this. See, a factory tries to automate as many things as it can so that it can produce more. The goal is to enhance production which can then enhance overall profitability. That's the exact same thing that I've done. I've built a system that's on autopilot. All I got to do is pay a premium and the insurance company takes care of everything else. And when I need money, I click a button in an online login with the insurance company and I request what's called a policy loan. And a couple of days later, give or take, that lands in my bank account. It's not my money that I'm accessing, it's the insurance company's money. But I co own the insurance company. So if I access some of their money and I pay them a little bit of interest that goes into the big pool that generates profits. Who do they generate the profits for? Everyone. I want you to type me in the chat box because if you own one of these things they generate profits for you, period. There is no one else that can share in those profits. So it's. Is it okay to pay interest, some interest to an entity that you co own type of Y in the chat box? If you think that it's okay to do that.

Oh yeah, we're getting the yeses. They're understanding that's not a problem at all.

Going back to the idea, Nelson's book page 48 and 49 expanding the system to encompass all income which he talked about.

My family presently needs to generate roughly speaking around 250000 of gross income personally every year. So we earn our money in a corporation. I work still work very hard to earn a, generate a living. I do have a variety of passive income sources. The passive income sources aren't, aren't in excess of this number yet unfortunately. They're getting there, they're growing. But we need to earn money in our corporation and then we have to pay ourselves through dividends or you know, T4 income, whatever we decide to do. And with the Help of our account. Now we move to B.C. what does B.C. stand for? Somebody let me know. In the chat box.

Bring your cash.

Bring cash. That's right. There you go. Okay, so who remembers what size my system is presently? How much do I. Am I able to put into premiums every year? Can someone type that in the chat box? Sniffer. See? Let me know if anyone gets it.

207,000 or 700.

207, that's right where I'm at, 207,000 right now. So high five. Everyone got 207. Give yourself a pat on the back. Great job. So I'm already putting 207 in. That's 83% of everything that I need to earn gross revenue personally. Now, not all these policies are owned personally. Actually, most of the large ones are owned in my holding. Corporate holding company. Okay. So I'm not trying to draw a balance between the before or after tax. I'm just getting a reference point. I'm putting 207 in. Now. That's new, it's updated, it's recent. But that represents 83% of everything I need to support my family, including paying my, my personal tax bills. Right. My, you know, etc. That's taken me 14 years to get there. Our income has changed over that time a lot. I first started doing this, my income was question mark. It, it wasn't. It wasn't 40 or 50 grand a year. My income was literally question mark. In fact, it was like triple question mark. It was a very crazy and scary time for me. I'm a recovering electrician by trade. I left $160,000 a year career. And then the following year, I think I might have made maybe $35,000. And I spent a lot of money, right? So it took me a long time to come over some of these targets. But as my income goes up, the target of what I want to accumulate moves as well. So the 250,000 represents the income that I, my family and I need to pay for our living expenses, personal premiums on policies, our property taxes, our personal income taxes, our food bill, our groceries. We still have a mortgage. I haven't taken over the mortgage on my house yet. Know all those things. We still have a mortgage payment, all that stuff. That's what I need in order to accomplish that. Okay. This year I'm going to receive dividends on the policies of about $25,000. And that's going to grow even further next year. So if you take that, those dividends actually become a premium dividends when we Use it in the system. They actually go back into the system and actually become another premium. So it expands everything. Everything is growing and expanding. And again, for those of you that are new, you. You may not interpret all this. I appreciate that. But I also appreciate you being with us here. So that's going to raise me up to about 232,000, which is going to be about 93% of my personal. The personal gross income that I need. Before today, working on my slides, I didn't even realize that that was the case. I figured this out probably two hours ago before I joined you guys, and I'm like, wow. I had no idea that I was approaching the level of what Nelson was talking about in his book. So it was just a fun exercise for me to go and rethink my thinking about how this is all happening and appearing for me. Okay. Now, by age 100, the cash value must equal the death benefit. By age 100, I'll be 43 this year. I'm not yet, but I will be shortly. That means I've got 57 more years left before 100. My children have 92 more years. 92 and 94, respectively. Okay. The bulk of that energy, the. The system is going to grow in my lifespan before I go, and then it's going to create an automatic cascade effect of prosperity and down my family line because of the legacy that we've built. As of today, I have outstanding policy loans with the insurance company of $316,000. This is our. As of April 3rd, that number has actually gone up as of today, but as of April 3rd, it was 316. When I captured all these numbers, I had 312,000 available. I literally just took a policy loan yesterday for $27,000. So. But as of April 3rd, these were the numbers. I have 25,000 of dividends on the way.

Key takeaway here is that the policy owner is always in control. No one else is ever pulling the strings. Here you get to control the strings. It is so liberating. I can't even describe to you how liberating it is to have that feeling. It is unmatched by anything else financially I've ever experienced. In my opinion, that's just me. You make your own judgment about that, but that's me.

One of my favorite quotes that I learned from Nelson Nash does having money safe and available when you need to take away any of your options, well, over the three stories I told you guys, would you say that I had some of my options taken away?

I had this. I Had a lot of money going out and there was a lot of money not coming in during a lot of those periods. So it was a little bit chaotic. But because I had access to money and you know, policy loans didn't solve everything, my system wasn't big enough to solve everything. I still had to use third party loans, lines of credit. I still had to dip into all the other stuff. I don't anymore. But at that time in my life, I absolutely did. I pulled every lever on planet Earth I could in order to get through it. Because my focus, if I can do this, if I can get through this, on the other side of this, if I keep building my system, everything is going to work out. Everything will be okay. I knew that. I knew it in my core. And everything has, even through all those hard times. Okay? So again, can't Forget, by age 100, the cash value must equal the total death benefit. Well, In February of 2010, my first policy, the starting death benefit was $148,000. Didn't have any term insurance on it. I had no worthy idea what I was doing. Just trying to figure things out. I just knew I needed to get started. And I said, I can do 4200 bucks a year. Let's figure where that gets me. And that's, that's what I end up with in 2024. Now the, we're at 13 policies. The original starting death benefit, the original starting death benefit. Not the total, but the starting amount on each policy, what they begin with is almost $3 million if I add them all together. But now I have paid up additions. Paid up additions are these building blocks of increased death benefit. Each increased death benefit block comes with cash value. It builds up and it builds up and it builds up and it follows the leader quite literally, to the point where he even wrote a book called Cash Follows the Leader. Because sometimes people struggle with this understanding. But quite literally, as the death benefit grows, the cash, which is your asset, must follow it, must grow with it. We have paid up additions of $2.3 million. So not quite 50% of the original whole life. I also have some term insurance in there. Most of that is on my life. I'm, I'm the one who has most of the coverage. When I look at my system and I subtract all the loans. Remember I had loans about 316,000. If I subtract all the loans, the net value of the system is 7.3 million of total death benefit. One year ago I did a presentation in Vancouver, very similar to this I, I shared a similar, similar story and I used the numbers from a year ago. The total death benefit at that time was 6.4 million. There's been an almost a million dollar increase, over $900,000 increase in the size of my family system in death benefit. If the death benefits grow $900,000. What does the cash have to do? Somebody type in the chat box. What does the cash have to do?

It has to grow and it has to match, has to follow.

I literally want to high five everyone in the chat box that's doing all that. Thanks Niffer. That's awesome. Like you guys are getting it. This is fantastic. It's kind of interesting. There's like a red thing on my nose. I didn't realize I was there. So, so you know, I made a lot of large loan repayments recently, you know, in the last period of time. And I added a new policy as well. So that's, that's part of what increased that number. Right. A new, new policy of250,000 plus loan repayments bought the loans down. So there's about $300,000 or so of, of this increase that was created from the, the new policy and some loan rep.

4.4 million of that is for my family. So if Richard goes, that's the death benefit on my own life. If I go, that's how much net of all the loans that my wife is going to receive to take care of the kids. 60% of all the death benefit that I have is on me. Richard is the patriarch of the family. If something happens to Richard, it's going to be, you know. Well, I would like to think it's going to be devastating for them. But more importantly, I know financially it will be prior to having this because we have this, it's still going to suck, but we will have something come in and solve an awful lot of problems. A big time amount of problems. Okay, he's back on the shelf. What does that mean? That means loan repayments. I've made loan repayments in my system totaling $568,000. That's money that's gone back into the system for me to be able to reuse. Put it back in, take it back out. Put it back in, take it back out. It's just like a savings account. I put money in the savings account, I need to use it for transmission. I take money out, I put in the savings account. Oh, I didn't have any income for four months. I need to make my mortgage payment. I'm going to take Some back out. Okay, same scenario. I have made 50% of these loaner payments I put back in in the last 24 months. In all the previous years with all those financial challenges that occurred and all those transitions that I showed you. And there's more that didn't make the story list. I wasn't able to put all the pieces back on the shelf. I wasn't making as many loaner payments as I wanted to because I didn't have the cash flow. It wasn't possible. I owed on the policies in a lot of years to just to get through lean times. But it doesn't mean I can't backfill them later. The system kept growing the whole time. Okay, that's so important to understand. I didn't have anyone knocking on my door saying, richard, we're going to floor clothes on your house. Because I didn't make a loan repayment to my policy. I control that whole situation. I make monthly repayments of a little over $5,000 a year. There's six individual payments. They're for a variety of things. What's the impact of all these moments in my life? Well, a lot of learned lessons, number one. And another thing is I have interest that I ended up paying the life company capitalized. In other words, at the end of an individual year, if I didn't have the loan repaid and whatever interest would have accumulated over that year at the anniversary date, that amount rolls over into the next year. Okay, so it's a simple interest calculation. And then it compounds one time per year essentially over all of my policy system. The total that I've paid life companies is $86,000. Well, how much did I pay the mortgage company on my acreage property over six years? That was like $103,000. Of the two different people, who do you think I would rather pay? The one that I'm a part owner in that allows me to have total and absolute control over everything and never ask for a payment ever. Or the one that begs for my firstborn anytime I want to talk to a human being over their bank.

What do you guys say? Type in ins for insurance company and bank for the regular bank. Which one do you. Would you rather do your business with.

Insurance all the way?

Okay, if I average that out over the entire time frame of 14 years, it's about $6,000 a year. It's like 500 bucks a month for the privilege. The privilege to protect my family. With almost $8 million of death benefit in various sources to grow a guaranteed stream of future Accumulated cash value, have total control over its access. Not be asked any stupid questions. Have an online portal I can do most of the work in, not have to worry about anyone ask, you know, wondering what I'm doing. Have a private contract that the Canadian government doesn't even know. I own all of those things. I would happily pay $500 a month to get all those benefits. Happily every day. Okay. I co own that company. So future cash flow, okay, it's got to grow now. My total cash value as of April 3rd is $691,000. That's the asset I've put in premiums of about 833,000. Again a huge amount of that's in the last two years. I got, I got a lot of new policies. A big chunk of my system is brand new. And this is just the whole life portion. It doesn't include the term, the, the riders, the riders I separated out of for this calculation. So 81, I have an asset that is 81% of every dollar of premium in the whole life I have contributed over my lifespan so far. And a lot of it's brand new. Okay. I'm only at this stage, age 100 is way the heck over here. How do you think it's going to grow? It has no choice but to go up. It can only do one thing.

The total death benefit of whole life. I set to take the term insurance out, separate the term insurance and we just isolate the whole life. The original face amount plus the paid up additions. Face amount plus paid up additions. This is the total, this is the current cash value. Well, the jelly in the sandwich is the difference between those two numbers. This is how much more my system must grow. If I stopped today and all I did is pay the minimum premium and I never received another dividend for the rest of my natural life. If all I did is pay the minimum, I didn't put any of the flexible premium. I only put the 52 grand in. I didn't put the 207 in. If I just did the bare minimum. This is the future cash flow that my family is guaranteed. That is the power of setting something like this up for your family's life. Okay. Nelson Nash was a forester. He took this picture. You can't see, I cropped it. But down below is actually Nelson Nash's feet. This is a picture from a tree that got cut down in his yard after he sold his the house that he built with his own two hands to his, his daughter and his son in law. Notice the inner rings of the Tree and how the size of growth, the rate of growth looks bigger in the very epicenter of the. Of this. Okay. Seems to grow at a bigger pace or speed. But notice on the outer ring. So this, this is where my family system is in cash value today, 691,000. I know beyond a shadow of a doubt because it's already. It's already in place. The death benefit already exists that my system will grow this much more. It'll be. This is the additional amount that it will grow. That's assuming that we cut the tree down. That's assuming that we don't keep feeding the tree. That's assuming I don't plant more trees. Does that make sense? More trees is another policy on another body. I don't care who doesn't matter. More trees is more premium that I put in. Okay. Feeding the trees, letting the dividends continue to do what they're supposed to do inside of the policy. These are the things you have a lot of control over. Notice how the lines of growth as we go, in a lot of these years, they're not as big. But just because they're not as big, you have to understand the perspective. It's all about perspective. It's growing on a much larger circumference. So even though the amount that it grew might be smaller because it grew in a larger amount, the volume of growth is far superior. This is not about rates, guys. This is about volume. Don't ever forget that. Very important. Okay, here's my family. I'm going to play a quick clip for you about our family banking meeting. This was two years ago, our first annual family banking meeting. And I'm going to play a little clip with my daughter here. Okay, do it again. One more time.

Did you. Did we have fun on the family bank meeting?

Yes.

Did we talk about everything we're grateful for? Yes. Who else did we talk about?

Nelson.

We talked about Nelson. And is that book pretty special? Yes. And you have a copy signed by Nelson, don't you? One day when you're older, you're going to get that copy. Yes. And it's important that every year we talk about the family bank. Family bank, Hurrah.

All right, let's hear for little Nora there. So she was. I guess she would have been four when we recorded this. So her first family banking meeting was at 4 years old. I've been planting seeds with her about the family bank since she was 2 years old. My kids don't understand anything about insurance. They don't care. They don't even Know what Dad does? They just know he's on. He does a podcast. They know that this book that she is holding is so important and is integral to everything in our life. And they know that everything that we do centers around this book. They don't know why. They know who Nelson is and they know that he's important. These are fundamentals that they can ingrain in a very early time frame. The rest of the details don't really matter. We're talking about creating stories and building value in our kids. Okay, now this is Nora. She had this little book called Fancy as Fancy Nancy Book. And I use this book at around 2 years old to start teaching her about the family bank. There's a story about the piggy bank. And I was able to convert that into how we have our own family bank. Our own family piggy bank. And it's become this unbelievable lesson that she'll remember for the rest of her life.

I read these books with my son, the Tuttle Twin series. They're about Austrian economics and fundamental principles, and they're. They're fantastic. And I incorporate that into discussions about the family banking system. Last year we had our family banking meeting. It was 25 minutes. We celebrated our vacation. We shared what did we love about being there, having an amazing event. We talked about Nelson kind of like Santa Claus as a character. And every kids love Santa Claus. We did the same thing with, with Nelson, helping people understand that we introduced his five golden rules to the kids. We reaffirmed the things that we learned the previous year. So we did some repetition. And then I talked about active versus passive income. And I gave two examples. I'll show you really quickly. We talked about books. We have a number of books. These are the three books that we've written so far. Our fourth book, Don't Spread the Wealth, is all about keeping money in the family. Don't Spread the Wealth is going to be released in June. You can pre order it on Amazon right now. I talked about creating passive income from books, you know, somewhere between 150, 300amonth. As we release more books, that'll grow. And that's a way that we can generate and create an income. I want the kids to understand that. We talked about active income. I stand in front of a computer every day. The kids can't see active income. They can't understand what that means. My wife, however, is ridiculously crafty. She makes these really amazing wood art projects and all this other amazing cool stuff. And then she sells it on like Facebook Marketplace. So they See, people show up to the house and exchange physical money for something that's a physical object. They can interpret and understand that at the age that they are as active income. So we use that as a lesson in our family bank meeting. And then we took this picture. So just want to give you some context as to starting to have these conversations to integrate family wealth, positive conversations about money as early as possible with the people you love and care about.

On my to do list was to build a legacy. This is a picture of my son Nathan meeting Nelson Nash. I was absolutely blessed to have that picture. It was amazing. Nelson, I learned so much from. He was my friend, my mentor. I loved him dearly. I just. I think about him all the time. Amazing human being. He's here. He's here beside me. He's here with me all the time. Always got a photo of Nelson. Nelson, his wife Mary with us right here. And I just learned so much about. About life from him. More than anything else, I learned this. It's all about how you think. It is all about how you think. Okay. This isn't about an insurance illustration. It's not about an investment. It's about control over the family's financial energy for as long as possible, as many generations possible, and being able to utilize as much as possible while you're on planet Earth. Okay. Nelson would say, when is it time to go and get started? Or when is the time to get increase your system? He'd say, just go plant another tree. Get it done. Don't wait. Okay. I bring back this example of success. And what does success mean for you? I mentioned significance and legacy. For me, it might mean something totally different from you. I'm sharing a little bit about my context and my story. What Nelson poured into me and all the members of our team, what his book has done for people, it's totally changed my life. And you can see through the last 14 years of my life how it's changed and what it's changed. So with that in mind, I'm going to invite the rest of our team back on and let's fire away with some questions.

First of all, Richard, just want to say you did an amazing job here, and I'm sure that we have some great questions coming up from our awesome participants who are still with us. So please.

Take your chance and give us your questions. We'd love to. We'd love to hear from you.

Now may. Maybe there's a. One of our teammates saw one that came up that was probably a good one. We should share with Anyone. Is there one that you saw in the Q and A box that you felt would be a good one to tackle for everyone that's still listening? Go ahead, Liz. I see. I see you nodding there. You've got one in mind, don't you?

Well, I see Sherwin just answered one here.

I don't know if you wanted to.

Share your answer there, Sherwin.

The one, too, Fardin, if.

I'm sorry, if I'm pronouncing that incorrectly.

Yes, yes, not a problem. So the question from Fardin, he asked, do we prioritize the base premium plus? I guess he meant that EDO and then pay back the policy loans. And I had answered Fardin, the base premium must be paid to keep the policy in force. However, there's flexibility in making EDO payments and making policy loan payments. So when we say edo, for those that may not be familiar with those acronyms, it just stands for Accelerator Deposit Option.

Yeah, very, very good, Sherwin. So. And just to take that one step further, and by the way, for everyone that's on the call, maybe can I get a value check in? And just let us know, Give us on a scale of 1 to 10, one is you wish that you were watching paint dry, and a 10 is that this was absolutely fantastic and exceeded your expectations. Let us know where we came in today for our session.

Well, you're doing pretty good. We got 10, 20. I think I saw a 200, which was okay, a little bit. We like those oddball ones, so welcome.

Okay, great.

Yeah, we're doing good.

Okay, great. You know, so. So premium is flexible. And in my examples that I shared over this last period of time in my life, I chose to prioritize premium over policy loans. So there was periods where I had policy loans outstanding and I wasn't servicing my loans very good. And there was a lot of times, actually where I felt. I felt kind of bad because, you know, it's so ingrained in us to not steal a piece and to make sure we're making loan repayments. And there were periods where I, you know, I. I really wasn't feeling great about that situation. But the reality is I knew that I would be able to pay them back later. I was focused on growing the system, and I knew I was very confident that I would be able to grow my income so that I could replenish those loans later on. And I'll give you an example that after the experience with my daughter, I mean, we probably used like $40,000 of capital from loans, give or take, over that time frame. When, when she was, my wife was pregnant with her and it was.

Five years later before I created a loan repayment schedule. And I, I wasn't sure the total. I didn't calculate the dollars, I didn't break pencils and I just took a wild guess at what I estimated the amount to be and I created a loan amortization and I set a repayment schedule and I started paying it back. Just because it was five years in the past didn't matter. I wanted to start replenishing and putting the peas back on the shelf from something that I did in the past. And I was able to do that in this scenario. I hope that makes sense. And the flexible premium. Here's another thing that's really important about the flexible premium. So it goes by different names with different insurance companies. Nelson Nash, in his book, he calls it the paid up additions rider. In most scenarios, not all, but in most scenarios, it can be funded at any time in the year. So if my policy starts on January 1st and I don't have the money available because I don't get a bonus or a tax refund until, you know, May 1st, well, I can fund that flexible amount. When that money comes in, when I have a windfall event, it doesn't always have to be done at the beginning. It's better, it's always best if you pay it right at the beginning, but you have the ability to be in control of that scenario. So again, very, very flexible. How you can do that? I hope we answered that question.

Here's another one for you, Richard. We get this one quite often. So you spoke about how you were able to get multiple policies. So that always brings up lots of questions. How could you get multiple policies? Is there not a case for being overinsured?

There is a case for being overinsured, but the life insurance company will tell you that.

You know, we have a pretty good gauge of what that's going to be. And for a lot of people, it's usually a much higher number than you think.

And so there was a point actually in 2018 where I was applying for a new policy in August of 2019. And I the amount of coverage was about $1 million. And at that point, based on what I declared as my income, the insurance company said that I was at the top, they wouldn't give me any more. And in order to get that new policy, I actually took a term rider on an existing policy and I told them I would get rid of that term rider so that they would grant me the new policy. So the total death benefit would still be in alignment. And so I got rid of about $300,000 of term on an old contract because I was replacing some of it anyway. And the new policy had some features that I wanted. So, so that was one example. Today, because my income has gone up, I can go and apply for more than I have. In fact, I probably should. I just haven't got around to it yet. A little busy. But my, I can apply for more now, even though I'm older. But because my income has gone up, my net worth has gone up. The ability to get more insurance goes up with that proportionately. So there's age basis, you know, think about your income. What, what, what's your income over a lifespan? If you're 25, you got a long horizon of earning income. If you're 45, your time horizon starts to get lower. If you're 65, your time horizon is a lot less lower. So the multiple of income that you could be approved for shifts throughout different ages. So that question is really relevant to, to age and income primarily.

Yep, good answer. So we get a lot of questions flying in now, like which insurance companies are you affiliated with? So the answer to that one is we have a multitude of life companies that we will use. We will find the one that's best for you and that's what we do for people that work with us. So here's a great one. Richard, how soon after starting your own banking system can you add another policy?

Great question. I mean, you can add them as quickly as you want as long as it makes sense to the insurance company. So another policy is based on, so it might be based on a different insured person. So as an example, reasons to get a new policy are you have more income or more money showing up than you think. You mentally realize that you can do more than you thought before. That's another reason. You have a major financial event or a windfall or an inheritance resell, property, like something comes up that's, that's a trigger. You have the birth of somebody, the birth of a child, the birth of a grandchild, a new member of the family joins you. That's an instantaneous reason to go get another one.

You, you know, you have a, a need for another person, a business partner getting into a business relationship. These are all rational reasons. Taking infant banking even out of the equation just to go get insurance on somebody. Okay, so the, there's no real limitation other than how much you income can afford to put in and reasonably by the life company and what Your, your own brain can conceive to a large degree. As long as we're insurable, we don't have a lot of challenges. If someone is uninsurable, then we, we figure out what to do at that stage. It is very rare where we can't help someone implement this process if they're uninsurable. Most people, most people have another insurable body. They have a child, a grandchild, a spouse or a parent or a business partner. There's someone that they have a financial interest in that usually can be the body. If you yourself cannot be.

What else we got? Give me another one.

Well, we have someone asking if insurance companies charge any administrative fees for additional deposits.

Administrative fees? Not exactly. They charge an actuarial. They charge an actuarial charge if you're making additional deposits. And again, that term can be used a little bit loosely, but let's say additional premium. You're finding additional premium. A premium is a premium is a premium. Premium buys insurance. Whether it's auto insurance, travel insurance, luggage insurance.

Pet insurance, or whole life insurance. A premium is a premium and it buys insurance. Okay, so, so when you're making an additional premium into the policy, if that's what we're talking about as a deposit, it's going to purchase something because it's purchasing something. That's not a fee, that's a purchase. It's purchasing new death benefit. That new death benefit must create cash value. Okay. And because the death benefit goes up, let me ask you this. For everyone in the chat box, if we increase the death benefit, who has the risk? The person who owns the policy or the insurance company? Go ahead. Type your answer in the, in the chat box.

Insurance company. That's right. So if the insurance company has all the risk, do they need to calculate the cost of that risk and take that cost out at the moment of the premium purchase? The answer is yes. So that's not a fee, that's an actuarial calculation. Because they, they have to, otherwise the whole thing would come crashing down. You want them to run a good business. If you're a co owner, you don't want them to run a crappy business. So that, that's kind of how that operates. Really simple.

So we got a great question on YouTube. Richard.

Oh, sweet.

And I was like, what's the oldest someone can be when purchasing a policy on themselves?

Policy on themselves, Good question. You know, I don't, offhand, I don't think I know that exactly. I think.

I think that's kind of shifting and changed a little Bit. I mean, in general, in general.

You know, people can be insured, you know, up to a, as far as I know, at least 75, I think even older than that. However.

Is it sensible to do that? Is going to be the next question. So just because you can do something, I can jump out of a perfectly good airplane with a parachute. But just because I can do that and I have done that, it's actually awesome. But my wife doesn't want me doing that anymore. So it may not be sensible if I want to stay married. Right. So the decision making process has to come in effect and that's where a good coach can help evaluate and have a conversation about that. We're going to take a look at the entire situation. Dollars in what you're working with, asset base, what's your legacy? What is it you want to do? What are you trying to accomplish? And then we can start thinking, okay, well, what's the body that we might want to consider doing it on is the consideration. And when, when people are, let's say, over the age of 60, nothing wrong with that, but it means that number one, if you're 60 years, if you had 60 years on planet Earth, you've probably picked up, you might have picked up some ailments, certain health challenges. The longer you're alive, the more probability health challenges arise that that happens. So some of the risk factors tend to go up. It's not bad, it's not wrong or any different. We have people get insured for that at age all the time. But the consideration might change around. Okay, what are we working with? If we haven't built up a big pot of assets yet and our income is about to go down because we're not earning an active income, then how much you can fund long term might shift and change. So how you build and construct something will be based on that. So that's why everything that we do is customized to the individual. It's not like we can say, hey, here's how Richard, hey, Richard got a policy of $148,000 for $4,200. I want that one. Well, Richard was also 28 years old when he did that. Right. Like, so everything has context and we need to really put that into perspective.

Yeah. And for the majority of life companies In Canada, it's 85. That's the oldest you can apply for life insurance.

It's here for Dan Allen.

Yeah, well, I'm close to that, Richard. That's why I know the answer.

Dan, you're, you're, you're the, you're the new 45.

Yeah, it's all good. So there's another great question because I'd like, you know, this is one we get every once in a while. So it's, how do I get my wife to buy into ibc? She's highly skeptical.

So a little bit of healthy skepticism is okay. I, I, I think that I'll give my personal opinion. Here's what I share with people. Nelson Nash is the great equalizer. Okay? Now Nelson's not with us anymore. It's been five years since he passed away, but he is with us in that we have video of Nelson. And in fact, the best thing that I think couples can do, if there's a spouse or a close family member who doesn't know or not sure about this, this process, spend an hour together, get your favorite snack or beverage. You know, licorice, popcorn, bag of chips, you know, whatever, soda pop, whatever the thing is you want. Sit down together for one hour, 60 minutes and watch the Nelson Nash documentary film. You can go to Nelson Nash film dot com, Everybody write that down. Nelson Nash film dot com. You can cast it onto the smart tv, sit in the comfort of your living room, and you can spend an hour with Nelson explaining about his own family, his own journey in his own circumstance. You will quickly learn and see that this is so much more than an insurance contract. This is so much more. Another great option to consider with our podcast, Wealth Without Bay Street. Now, you can find that by going to wealth without Bay Street.com forward/YouTube for YouTube. It'll bring it right to the YouTube channel. On the YouTube channel, we have playlists, and under playlist you'll see there's a client playlist there. We have new client interviews coming out actually in the next few weeks. We literally just did one last week. It is epic. A gentleman who's reversed type 2 diabetes because he learned about infinite Banking. He's changed his entire health of his entire life because he read this book that has nothing to do with an illustration or his finances, but it has everything to do with his finances and everything to do with his legacy and his family that's coming out in literally maybe about a month's time. So you can go and see those playlists and look at again the, the interview series. I think it says infinite Banking. Where is it here? It's on there somewhere. And we have probably 30 interviews with existing clients talking about their stories, real estate investment, using it, you know, to bail them out of a jam, paying off their mortgages. I mean, so many different things. Okay, so these are great options for you to consider to get in there. I think it's right there at the bottom. It says client Success Stories. That's the one down there. Henry, if that's you sharing it, Client Success Stories is the one down at the bottom there. Down. Yeah, right there. Click on that. So that, that playlist is a great opportunity for. For spouses. Great question.

Yeah, that is a great answer to that. Exactly. Because they're people speaking about it and their experiences. You know, that is something that they've experienced. So it's just. That's, you know, really great way for people to get an insight as to how other people have used this in their life.

Yeah. There's a question I see here from Sean Morris. Best to expand your system and different policies.

You know, when you have large lump sums come in, so you can. The large lump sums. So depending on how you're set up or structured, every policy has a minimum amount and a maximum amount. Minimum, maximum, minimum, maximum, period. Okay. If you filled everything up to the maximum and you can't put any more in, but you want to put more in, that's a natural reason to go and expand your system. Okay. So that means going and getting a new policy, which is why I have 13 of them. If I could fit all the money I wanted to put into the existing policies, I wouldn't go get another one. I couldn't fit what I wanted in, so I needed another one. Okay. That's natural expansion. Your. If you have lump sums that come out throughout the year because of a seasonal work or seasonal job or bonuses or whatever, then you can connect with a coach and construct something to allow you to accept those payments in. As long as we have a reasonable amount for you to. You can consistently, confidently maintain that minimum so that you feel confident in what's happening. You want to make sure that you're confident and the system is a blessing, not a burden. Okay. Sometimes we get overzealous a little bit and we think that we can accomplish more. You know, people. People.

Overestimate what they can get done in a year, and they underestimate what they can get done in a decade. Okay. So it's okay to go in phases and build as you go, but, you know, but the key is to get started. That. That's the key.

All right, what's another good one here?

Was there any that came up while we were doing a session that anyone thought was a good one that we should, you know, invite for the whole group?

I like this Question here, Richard. Can a policy be written on an LLC business or needs to be on a living person?

Okay, so an llc, so that's probably someone who lives in the States, which is fine. So the business, a business isn't a human. It isn't a body, isn't a person. Tax wise. It's considered that. It's considered an entity. It's kind of like another person, but it does. It's not. Doesn't have an actual physical body. You can only insure a physical human being. So you can ensure the business owner, the shareholders, okay, primary shareholders, primary directors, key people that the business requires to operate, those are the primary individuals that can be insured in a business structure. So as an example, I have a holding company and I have an operating company. Operating company sends money to holding company. Holding company goes and buys policies. Policies are on Richard and his wife and now a business partner. So the Holdco owns, I don't know, five or six of the 13 policies. Several of those policies I had started personally. There was a point where I actually transferred them from personal into the Holdco. I didn't have the Holdco set up.

Early enough. And so once I did set it up, I made that transition. There are very specific things that must be done if you make that transition. That's too many details to get into today. It can be done, but it's not always the right thing to do. There could be a reason not to do it. There could be a reason to do it. And that would be discussed one on one basis with a coach to make sure that they understand what they're getting into. And some of the risks of making an asset transfer, because that's an asset transfer from one entity to another. So just like transferring a piece of real estate to a corporation from a personal could have some ups and downs to it. The same scenario can apply with insurance. So a fair assessment. Henry.

He said, tapping his tax wizard on the shoulder. Yes, Richard.

Awesome. That's a really good one. Thanks for picking that up, Niffer. Okay, give me another one. Roman, you've got one that you've seen. I want to hear from Roman.

Hey, Richard, you mean the question?

Yeah, pick. What's a question that you suck about that you thought would be a good one for the group here?

I'm thinking about good ones.

So you've tackled already the holding company. How do you find new people to ensure only one. To ensure only. I'm sorry, I think I lost this question now. Just give me one second.

Well, while you're looking for that there's a question I see here about holding court versus personal ownership.

There's advantages and disadvantages to both things. You always get the best asset protection at the UN me level, at the individual level. But in the current tax climate in Canada anyway, this, this would be. This answer would vary in the states. We know we're not tax professionals in the states or whatever, but there's reasons to consider doing it in Canada versus maybe in the US and it's to be able to have additional deferral options so that when you want to go take a passive income, you can control, you can avoid passive income tax rules as you build up capital in the, in the holding company. So the same reasons you would want to have a holding company for other asset accumulation would be similar to why you'd want to have a policy there. You generally can work with a larger dollar in the, in the corporate environment. In most circumstances, as long as the operating company is at a, you know, small business deductible tax rate or whatever that, that you can, you can potentially have a larger system that you can accumulate there for, for purposes. But it also means that when you want to access capital, if you need capital personally, you still have to cross the, the corporate zone to the personal zone. So if everything is in the corp and the corporate funds, everything you do personally, it's always money crossing that barrier of corporation to personal. And when money crosses, regardless of the source of money, there's something you're going to have to deal with some form of consequence or accounting premise. And so that's something that people, we teach people to understand. We have a ton of great content about that.

Awesome. So this question I have is coming from Duncan. I think it's from US citizens or.

Neighbors. So he's asking how do you get more policies on yourself and how do you find new people to ensure only one of our immediate family is a Canadian only citizen.

Well, so regard. So I'll take the citizenship part out just because that can muddy the waters. We have a whole podcast that's about dual citizens, US and Canada. Like if you're, if you're dual citizens or whatever, US living in Canada or vice. You know, vice versa. There's a whole situation and people need to know about that that's available in our. I think it's the Wealth Without Big Government podcast or playlist somewhere in there. Yeah, US Citizen landmines. So we would encourage people to listen to that. But as far as finding new bodies, I mean everyone that you have. So the rule of thumb is you can go one up parents sideways, spouse and business partners sideways, and two down children and grandchildren. That's the general rule of thumb. Within the rules of thumb, there are exceptions to every rule. Just like in the tax code, there's a bunch of exceptions. Right. So you, you know, can we get maybe nieces and nephews insured sometimes not in every situation. It depends on the circumstance. If you haven't insured your own spouse and your own children and yourself, would it be rational to go and insure your niece or your nephew? Of course not. That would be illogical. So everything has to make sense as a picture when it's presented to the insurance company. And that's part of what our amazing team here helps people do in some.

In some instances you may actually insure your parents as well if you can prove that there is a financial risk to you if they pass away. Sometimes I have a client who has a parent helping in a business and, and we were able to actually justify.

Definition risk.

Yeah, perfect. And all that can get explored when you meet with team members like us because we're going to give you clarity on the situation. Yeah, those are definitely like individualized questions, you know, for people to do on a one to one basis. Okay, cool. What's, let's see, what's another one here? Is there any on the open side to the left?

Would it make sense to put all your bi weekly income into premium so that you can start compounding? So the answer is no, it wouldn't make sense to put all your income in right away because you can't build. You can't. Rome wasn't built overnight.

You have to, you have to build things in phases. You can't put all of your income into something unless you're living off of a fraction of your income. Okay. You have to have a balance between funding premium and being able to also replenish loans. Just because I shared stories today of my life where I didn't make a lot of loan repayments because I was, I had, I had income, I really had it balanced between income and expenses problems because of different, you know, and I only shared three stories. There's a whole bunch more stories I didn't share today. You know, about renovations on other properties and tenant move outs and whole whack of other things. So these, these experiences and these pitfalls are going to show up and they're uncontrollable. So just because you might have a pretty good job at your known fixed income and expenses, it's going to help. But if you Have a lot of variability or some variability comes up and now you're putting all your money into premium and you don't have quite full liquidity. And now you have to, you have to go deal with a big ticket item that's not available. Like you could get yourself into a ton of hot water. You have to build the system incrementally to get it to a point where it makes sense to do that. And you also need to, like, you know, it's okay to go a little bit bigger, that's fine. But you, you need to have a good balanced conversation with your coach. It doesn't make sense for people to just do that right away. You have to understand how the process of taking loans and repaying loans works. Everything that we do new in life requires practice. This is a lifestyle. It is not a financial plan or an, you know, it's not just something that you do and then you put it aside, you never look at it again. It is something that is incorporated into your financial life at all, at all aspects.

Okay, what else? I think the rest of them question Richard from. Yeah, go for it, Santos. Yeah, they're asking if you already have a whole life, whole life insurance. Can this be converted into universal life insurance with dividends?

So that is a really good question and I've got a great answer for that. Number one, the answer is no. Number two, I personally would never do anything like that. So we're not talking about universal life. Everything that I discussed today is all about dividend paying, participating, whole life. There's whole life that is very basic and doesn't really do much. Then there's dividend paying, participating, whole life, which is the VIP above. And then there's well structured, designed and optimized for the purposes of infinite banking. Dividend paying, participating, whole life. But that would be a really long way to say it. We need a very creative acronym to explain that we don't do anything with universal life insurance. You know, I, I meet with people. I literally got, had a gentleman email me one yesterday, which is actually an okay contract because it's level cost and it's an okay death benefit. It is a really poor place to warehouse capital because it's very restrictive. So we don't teach that. And it's not to be utilized for the purposes of building an infinite, you know, building the process, becoming your own banker into your life. And in my opinion, it's completely unfunctional for that. And Nelson Ash even indicates that in his book. Great, thanks for bringing that up.

Nice. These are Good. These are good. Any questions that came up from any of our teammates that we think would be beneficial to the group that maybe haven't been asked already?

Richard, I have a question for you.

Yeah, do it. Satish, what do you got, man?

Yeah, so I was with the client this morning and the question came up, you know, we recommend that this process be implemented with insurance companies that are mutually owned, right?

Yes.

So that we can get to participate in the dividends. And the question was, what if I have a policy with a mutually owned company and that company becomes demutualized in the future? So what impact would that have in my dividends on my dividends, on the growth of the policy, if any?

Very good question. So for a little trivia or history lesson, I guess. And I, I won't get into the weeds on it too much, but basically in from 1999 to about 2003 in Canada, there was some changes that took place primarily having to do with like I think federal budgets more than anything else. And they, many of the insurance carriers that were mutual companies, mutual meaning that they are owned by policyholders and they are not publicly traded on a stock exchange. A stock company is publicly traded on the stock exchanges. So they have policy owners and stockholders. Most of the major companies, what happened is they consolidated. They the big companies, the big fish swallowed the small fish. They absorbed all the little players. And then the policy owners were given a vote. And as long as they passed, I believe it was 75% vote, they were able to demutualize that company. If you were an owner in a company and a company went public, you would be issued stock in the company. And that's exactly what happened. So for people with like Canada Life, Sun Life, Manulife.

Trying to think what else there is there. I mean at one, at one time it was Great West Life and.

What'S the other? London, London Life. They, they now all amalgamated under one banner because they were all owned by one parent company. Anyway, our Financial Corp. If you're curious and you're a bit of a nerd like me, you might want to Google it because they're a megalolith, ginormous global entity that owns a massive amount of insurance and financial companies. Our Financial Corp. You can see an actual really cool organization chart on their website. Anyhow, so they, they demutualize and anyone that had participating policies at that time, during that window of time, they still have their power policies. They still are earning the dividends. However, they were also issued stock in the new company. The new stock entity, and then they could maintain and hold that stock or they could sell it off on the open market just like any other stockholder. That's what takes place in the event of demutualization.

That's awesome. Thank you, Richard.

It's a great question, by the way. Yeah, this is awesome. Well, I know that we're probably way over time. As my team members know, Richard doesn't watch the clock and pay attention to time very well. As everyone who's on this with my team knows that that is one of Richard's potential downfalls as too many of my clients. But this was a ton of fun. I think we've done a pretty good job answering most of the questions. If there's nothing new coming in, I would love to be able to give people their time back. If there's any last minute question, if you want to type it in right now, we can try to tackle. I happily tackle one or two more real quick. But for everyone that stuck with us here, I mean, I had a lot of fun doing this. I'm glad I was able to provide this experience and that everyone was able to stick around and told my teammates, I mean, amazing job handling, you know, the chat and all the other amazing things that took place here. So thanks everyone for, for attending. Just want to give credit to Richard on a fantastic presentation, especially walking through a very. A very authentic personal experience. It's not over glamorized. It's very specific to Richard's situation and it's. It's important just to see because we're not trying to position things that are outside of what is actual, actually reality. So it's a really good way to show how implementing this concept can really make a difference in the uncertainties of life. Yeah, thanks for that, Henry. There's a couple of sayings that the truth will set you free. And one that our CEO Jason likes to say is that all progress begins with telling the truth.