How the Wealthy ACTUALLY Pay Off Debt and Buy Cars Without Using Their Own Money

How many cars have you bought up to this point in time in your life? Now think, okay, what about your spouse? How many cars have they bought? Now consider, where are you at? Maybe you're 25 years old, you got your first car. Maybe you're 65 years old and you've got 10 under your belt. But now consider, okay, think forward into the future. So the growth, relevant growth amount in that same time frame of purchasing the car was much higher for the infinite banking sister, when we're purchasing the first.

Car, okay, so imagine this. You have two people starting with the same amount of money. They have the same goals, the same opportunities, but they end up in drastically different financial realities. And what made the difference? One individual managed their money by implementing the process of becoming your own banker, the infinite banking concept. And the other individual did not and stayed stuck in the traditional financial system. So, Rich, let's dive in.

Yeah, well, in order to do this, we're gonna, we're gonna go right to the source material, we're gonna go right to Nelson's book. We're gonna look at the example again of, you know, buying cars because why? Everybody needs a car. We're all spending money on cars. It's a huge call it a suck of financial cash flow that, you know, deteriorates out of people's lives all the time. And you know, Jason, we've been doing this for so many years and I don't know how many thousands of people we've asked the question and get them to, you know, get participation from a group in a room, from anywhere from 10 people to a couple hundred people. How many cars have you bought up to this point in your life? Okay, so listener, that's you. We're asking you now write that down on a sheet of paper. How many cars have you bought up to this point in time in your life right now, Think, okay, what about your spouse? How many cars have they bought? Now consider, where are you at? Maybe you're 25 years old and you've got your first car. Maybe you're 65 years old and you've got 10 under your belt. But now consider, okay, think forward into the future. How many more cars are you going to need before you kick the bucket?

And how are you going to buy them?

Yeah, where's the money coming from? What are you going to do? Are you going to go pay cash? I mean, the price of cars are going up. Are you buying used cars, more expensive cars? Like, what's, what's the situation there? So all of that is relevant but just consider how many up to this point, how many more going forward, and then think about your spouse as well. And then I want to challenge you to go one step further, one second layer, which is how many cars are your kids gonna need? And if your kids get married, what about their spouse? If you start to really put all those pieces together, it's like, wow, that's a lot of capital flow that potentially is going to just completely disappear out of our financial capacity. Like, it's going to leave the aquarium and someone else is going to get the benefit of all that money.

And so this case now that we're going to look at is a case where we're looking at two individuals. They've got the same amount of money, they have the same objectives, but they're going to achieve two very different outcomes. And for the purposes of this case, given that we're referencing R. Nelson Nash's book titled Becoming youg Own Banker, we're going to refer to these individuals as twin sisters. And these twin sisters got together one day and they enjoyed a cup of coffee, and they were just having a conversation saying, look, just given the fact that we're twins and we've talked about what financial objectives we have, wouldn't you know it? They're identical. We want to achieve the very same financial outcomes in our lives. But one of the twin sisters decided to do it outside of the traditional financial system and go about it a little bit differently. How did they do that?

Perfect. And so for those of you following along, if you have Nelson's book Become youg Own Banker, we're going to reference page 45 of the book. So I'll bring that up on the screen here. And I just want to give everyone ability to kind of see the whole thing. It's, you know, it's all kind of math and a big spreadsheet. So I'm going to zone in on this. We're going to make it quite a bit bigger, and we're kind of zone in on the top section. How's that showing up for you, Jason? Nice and clear there.

Yeah, it looks. Looks great.

Okay, great. So a couple things we want to do. We want to isolate some. Some aspects. So number one, at the top, we have deposits of 5,000. So first thing Nelson would talk about, look, there's seven ways that you can get the use of a car, and those seven ways are, first, you could steal it. Well, that's not very good because we don't want to, you know, we don't want you doing anything illegal. And that's not really, you know, theft is the first labor saving invention, Nelson used to say, so stealing, it's not really a viable option. All right, But. But you could, in theory, get the use of a vehicle that way.

Yeah.

All right. The next one is gifted. It could be gifted to you. So maybe if you're. You received a gifted car from your parents or something. You know, I. I actually had something like that to some degree happen to me at one point in time in life. So that could be one other method. Well, the next couple of methods are you're going to lease it. Okay. Where you don't really own the car until you buy out the lease.

So.

So someone else owns it, and you're using the car and paying for the privilege to use it. All right, the next thing is. Here, I'll stop to share for a second. The next thing is you could finance it so you don't own it yet, or you have title to it, but you don't really own it until you've made the final payment. So you're using someone else's money to go acquire the car. Okay, so that's the next method. Now, the following method is that you could, of course, pay cash for the car, but you can only pay cash for the car if you have the cash. So that means you first have to go through a capitalization period where you build up a pot of money to have enough money to pay for the vehicle. So that requires delayed gratification. That's one of the elements of Parkinson's Law. You have to. You know, Nelson used to say, show me someone who's willing to put money aside for seven years and not touch it, and I'll show you someone who's conquered Parkinson's Law. So the cash buying method requires capitalization, requires energy, effort, commitment, and consistency to build a reservoir before you can have the thing. So you may have to delay having the use of the car for a longer period of time.

And when you think about paying cash, leasing, or financing. So if we. If we narrow down to those three of seven options, every single one of those options involves a permanent transfer of money away from you. So you described it best in the cash option. You're building up money on the books of someone else's bank. In order for you to get the car, you have to withdraw that money to go buy it. And when you do that, you get the car, but you give up the opportunity to earn interest on that money, not only for your lifetime, but everyone else who comes after you when you lease the vehicle, you're really making a payment which is someone else's passive income and you don't really ever own anything. And then when you finance the car, you're making a payment and you're driving an asset that is just continually depreciating in value. And every payment that you make is a permanent transfer of that money away from you. So one of the two twins said, look, well that's the traditional method of buying cars. Like that's, that's how you buy cars, dummy. Like, don't you know that that's how you get it done? And so that's what I'm going to do. But I'm going to utilize the bank a little bit differently. But it's going to be someone else's bank. Whereas the other twin sister said, well, I read this book titled Becoming youg Own Banker and I got together with this guy named Richard and he encouraged me to purchase a dividend paying whole life insurance policy. And he encouraged me, given that our financial objectives are the same, he encouraged me to put the same amount of money into the policy that you're putting onto the books of someone else's bank. And then he said, look, let's just sort of compare what the outcomes are and you decide what track you want to go down. And so how did that work out, Rich?

Well, and actually it was really easy for them to make that decision because the example was right in the book. So that's, you know, what helped, what helped things along. So here we go, we're going to bring that back up again so we can see our deposits going into a respective system. Okay, so we're talking about system. This is capitalization taking place for seven years. Now Nelson's example, he's not showing using anything until the beginning of year eight. It doesn't mean that it couldn't be used earlier. But for his purpose he said, look, if you can commit to doing this, you're, you're setting yourself above your peers because you understand how to conquer certain human behaviors. All right, so this is right, this is money going in. This is an inputs column. We have car payments here. So both of these individuals, we have two twins. We have the. What's referred to as a CD sister, or in Canada the GIC sister. Okay, so we have, we have that one and then we also have the IBC sister. So the two twins. So this is their respective accounts growing over here. We're going to buy cars throughout this lifetime. So I'll scroll down, we add it all up, I'll Just give you the, I'll give you the shortcut. It's 11 cars that we're going to show in the example. Okay. And in each example we're gonna, we're gonna do a withdrawal. So in this scenario, Nelson was, he wanted to meet people where they were at. So we're not looking at policy loan situation, we're looking at withdrawal from the respective system using that capital to go pay cash for a car. And then we're making a car payment. And Nelson had it worked out as an annual payment, but he used the monthly equivalent basically to create the payment stream.

And he, there's no policy loans.

No policy loans. He based this off of a trade in value of a Chevy Malibu when he put this all together. So this was the original impetus because it's a car that his wife actually had. And so he based it on, of his own personal experience of, okay, I got the old car, I'm going to trade it in. They, when I trade it in, they say I, I owe them 10,550 to get the new Malibu. And this is, this is how we based the whole example based on that. Okay.

And as you, before you continue, Rich, one of the things I wanted to add to preface as you dive into this, which is going to be awesome, I want to preface this and our, our amazing video editing team can maybe help emphasize this in the video. We need to understand that there are four characters in the financial play. So I want all of the viewers to think about this as we're working through the example. The first character in the financial play is the depositor. Both of the twins are going to be depositors. One deposits money onto the books of someone else's bank by purchasing a certificate of deposit. The other pays premium into a dividend paying whole life insurance contract with a reputable mutual company. So that's the depositor. The second character in the play is the borrower. And even though we're not referencing policy loans, nor are we referencing borrowing money from a conventional bank, when you pay cash for things, you're still working with borrowed money. The third character in the play is the banker and the fourth character in the play is the bank owner. And we'll tie those final two characters into this example once Richard leads us through the next few steps. Back to you, Rich.

Perfect. So just created a couple like little basics here. So what Nelson's talking about in this CD, sister, we've got a person, they take their $5,000 at the beginning of the year, they put it in a GIC or A CD certificate of deposit. It's paying five and a half percent interest. Well, recently you could get something close to that. Now the rates are going back down again. When Nelson did this originally back in 2000, that was a prevailing rate. Now they're in a 30% tax bracket. So he said, you're gonna have to pay tax at the end of the year. So he's looking at the net value of about 4%. So you can see at the end of the year, the 5,000 has grown to $5,200. That's that 4% net. Okay. The following year, another $5,000 goes in. It grows, we take out the tax. The end result is we now have $10,608.

Okay.

Over here, the IBC Twin goes and gets a dividend paying whole life policy. She puts a $5,000 in as a premium. Okay, a premium. And then she has a cash value. Well, this is the net cash value in Nelson's example that was available. So in the very first year, the twins get together for Christmas and they're sitting around having, you know, an eggnog or whatever they're doing, and they're discussing, oh, hey, how's things going over there with, with Richard? You know, he got that policy or whatever he said he was going to do for you. I know I put in 5,000. What do you got going on? Well, she says, well, you know, Richard says, going to be a long game. And, you know, it's really a long term thing. And so I'm committed to the process. I've got 1933 bucks. So meanwhile, what, what do you think is happening with the CD sister? She's thinking to herself, oh, my God, I told you that that Richard guy, that insurance guy, was an absolute yahoo. He's not looking out for you at all. My word, you got to get rid of that thing right away. Don't do another year. You should just get rid of it today and you should come over to the regular bank and do what I'm doing. Because this is working out like hot potatoes, let me tell you. Right. That something to the effect is the conversation going on. Yeah. All right. So year two goes by, they get together, they have a similar conversation. Of course, the CD sister is much farther ahead. They continue doing this for a while, and it's not until. And I'll just give everyone a bit of a preview here and I'll. Let's pick a different color. It's not until year 15 where all of a sudden the IBC sister pulls ahead and has a higher account value than her twin. And from that point in time, she maintains being higher for the rest of the life of the entire system, really, the rest of their existence. Okay, so that's, that's the long game versus the short game. And when we run a race, whether you've ever done that before, a marathon or something, what do you care most about? Is it how quickly you come out of the gate or is it how do you finish the race? It's really how you finish that matters. And we see that happening inside of the twin sister example. So now let's talk about cars. So you can see right here, we purchase our first car in year eight. Now the purchase again, we have an account value. That account value comes down. So what we're looking at here in these columns is the end of year value. We had an end of year value, we took 10,000, 5, 50 out, but we repaid 30, 30 as car payments. And we still earned interest or accumulation on cash value respectively, in each of these systems. And they continue to rise again. So a couple things to notice here. If you take a look from before we took the money at this stage, and then when we take the money the following time, what is happening with respect to the increase in their system?

If you take a Look at the CD Sister 49,000, minus the 41,000, it grew about $8,000, roughly speaking.

Right.

If you take a Look at the IBC sister, her account value is 45,821 versus 35,960. It's pretty close to 10,000 bucks. It's a little bit off. It's off by maybe it's about 99, $9,800. So the growth, relevant growth amount in that same time frame of purchasing the car was much higher. For the infinite banking sister, when we're purchasing the first car.

Okay, now they've had four years of fun with the Malibu, and it's time, you know, it's, it's got lost a little bit of its gene. It's got a few dents from being in the parking lot and the, you know, shopping carts. And they're going to do a trade in. They're going to trade in the old one and they're going to get a brand new one. So we're just going to keep that price consistent. The reality is it might be worth a higher value, but for the purpose of example, we're just going to keep all those the same. They do the same process, take some money out, go pay cash for the car, negotiate a good deal. Hopefully with the car dealer, which is not shown on here, but ideally you can, there's probably some savings available there as well and they're going to continue to consistently make those car payments back into the system. All right, so we know at year 15 that the infinite banking sister has now pulled ahead as far as her cash value in her policy relative to what the twin has at the regular bank. And if I keep scrolling down here and we're going to go all the way down to looking at a retirement phase, there's a couple key elements we need to take a look at. So we're going to zone in here on line 51. In fact, I'm just going to highlight line 51. Let's get a big green color going all the way across the line here. So here's line 51. This is the point where they've made their final car payment and they're not getting any new cars at this stage. Now, by the way, one thing I didn't mention is that this started at age 21 for these twins.

Okay.

By the time that they get down here, they are starting age 72.

Okay.

This is when they're purchasing. They've, they've finished making payments on their last car. They're probably not putting as many miles on and they're not buying any more cars in this particular example. Well, the CD sister over here has $258,000, 259, we'll call it inside of her account value. So she did pretty good. Like we should absolutely like high five bump chests. Well done. This is from effectively self financing cars. She paid cash for every car. She committed to repaying the repaying car payments because she would have had to do it anyway. And she kept it all going back to a system which is so happened to be at someone else's bank so she could generate some earnings. Over here we have the IBC sister. Now if we take the difference here between these two numbers and for the purpose of our example today, Jay, I won't round it. I'll actually do the real. We'll do the real math. So we have $964,638 for the IBC Twin minus 258,927. And I'll leave the change off because I want to keep it simple. So this is the total difference for the IBC sister. Let's just call it $706,000.

Is the total difference in their account values.

Not a little number. That's a big number. Yeah.

And there, there's a primary reason for that outcome. One of the twin sisters was a customer, the other one was an owner. And I'm referencing the twin sister who went the IBC route, who became a.

Co owner of the life insurance company. And that position of co ownership put that twin sister in a position where she became all four characters in the financial play. Was she the depositor? Absolutely. She deposited the very same amount that her twin who purchased certificates of deposit purchased. She put in the same amount of money.

Into someone else's system. Whereas the IBC twin was a co owner of the life insurance company. So she deposited money, she withdrew to buy cars. She's still working with borrowed money. When we reference lost opportunity cost, she's the banker because had she requested policy loans, which she didn't, throughout this whole part of the journey, she would have controlled the repayment schedule of those loans. And she's the bank owner. So where did all that additional financial energy flow to? Well, for the customer twin, that flowed to the stockholders of the bank that didn't flow to her. Whereas with the IBC twin, all that financial energy landed right in her own policy.

And so if you're working with the very same amount of money, but you're just changing where the money resides, and then from that place you're achieving a series of financial objectives, then logically, how much of your capital do you not want residing within the IBC bucket versus being just a customer? If you have the option to be the owner and the customer.

That creates a significant financial advantage as evidenced by what the calculation you just did.

And if you take, if you take into consideration, if you think about the amount of time we're looking at here, okay, we got 51 years. If there was $5,000 worth of deposits on the front end, that's 35 grand. Plus all of these car payments that they made, all of those would have been deposits on the books of that other banking institution.

Right.

Well, they're paying interest for the privilege of getting access to that money to go do more with it. So this $706,000, the differential, I really, you know, I don't think it's a stretch by any means that that's how much revenue would have been generated on those deposits for the bank owner over that same time frame. So stockholders would have received that off of that same timeframe.

Yeah, that's so true. And now they're at a point where it's retirement time.

And here's where things get really interesting. And, and again, it's, it's clear we can see how much money one of them has over the other. But this is where I think it's really important to recognize. Look, both of these individuals did well. There's nothing, there's nothing wrong about doing it. The, the CD sister way in comparison to the person that paid cash. And all they have is the 30, 30 car payments for four years stacked up in an account and maybe a little bit of interest that accumulated somewhere along the line. Like they're way further ahead. And the person that borrowed the money from the third party bank and had nothing left over, they're way further ahead than that person. And the person that leased cars the whole way and never even had ownership of the car over that same time frame. But they needed the same cars. They're light years farther ahead of that person. Yeah. And the person that stole five of those 11 cars and then got pinched and thrown in jail and spent the rest of the time in jail, they're way ahead of that person. Okay, so like just put everything into perspective essentially is what I'm getting at.

Yeah.

But in the following year, they each take 50,000 as a passive income. Again, we're looking at, you know, a quote unquote after tax environment here in this relationship that we're talking through this. Well, we need to first understand what all went into the system. So there's a couple of columns at the bottom here. And I want to isolate this because a lot of people don't realize this is the case. This column represents all of the amount of withdrawals that they took out for car purchases. So they did 11 cars and this is the total amount of withdrawals. This money actually came out of each respective system.

So that's a minus.

That's right, it's a minus. Over here. This represents the inputs. This was the money that went in. It was the $5,000 for seven years and it was the 30, 30 car payments for all of those car payments put together. So this is all that went in to the policy and this is all that came out of the policy before retirement income. Yeah. Well, in order to get a really good reference point in here, we need to put, we need to do the math on that, the third grade arithmetic, as Nelson Nash would say. So let's do 168,320.

Okay.

Minus the 116050, we have a net money remaining. So net money in the deal. How much is left in the deal? Nel Nelson would say 52,250. All right, so I'll just write it down here. 52.

270.

270. Sorry.

Yeah, that's all right.

So that's how much is left inside of the system as far as net allocation, what went in, what we withdrew to go buy cars. How much skin in the game do we have in this deal? Right. Well, this is where things are like super, super interesting from my vantage point. I want to change colors here. I'll use red for this. So each sister withdrew 50 grand in the very first year. Didn't they get the equivalent of most of that net money back?

They sure did. And it's important to point out that the CD twin actually withdrew. Right. It was cash that was coming out. I mean that's, it's a real number. And what Nelson reminded us of is that the IBC twin, there were dividend withdrawals from, from the actual policy. Right. And so that's why you see that the cash in the system, you see that continuing to go up in the IBC column as compared to the cash in the system going down in the CD twin sister column. They both retrieved the very same amount of money, but one account value went down, the other one went up.

Yeah. And then year two, we repeat that process, they've taken another 50 grand out. So now they've got all of what they had, quote unquote, remaining in the deal out. Yeah. And then they've got some friends with it. So you could say, okay, well that might be the equivalent of all the tire rotations and oil changes on all those 11 cars.

Okay.

So then the following year they take another 50,000. Okay, great. Now they got all the insurance payments that they made on cars or the equivalency of that over a lifespan, all the, you know, alternator and, you know, repairs and batteries, you know, and whatever that they, that they got, plus maybe some extra. So but really if you, if you, if you run that out, you could say the equivalency, the equivalency of what they paid to own and use and drive those cars, they got the equivalency of that back at later on stage of life based on how. Not, not, not altogether just based on where, but based on how they made the decision to finance those cars. They made the decision to self finance them using very strategic principles. They had a process. I'm going to build and capitalize and create some measure of growth on what I have. I'm going to go and negotiate good deals and pay cash for my vehicles and I'm going to, I'm going to create a loan repayment schedule. For myself and be ultra consistent on that. And I'm not going to skip a beat. I have to be an honest banker. That was critical elements to this becoming a reality in each one of their lives.

That's a really good point because one of the things that we hear when people are describing the infinite banking concept is we hear things like how you can get wealthy buying cars. That's just not the case because this is a really sharp example. There's no loan activity here. The insurance company is administering this policy and ensuring that the total cash value grows to match the total death benefit by age 100 of the life insured by age 121 of the life insured in the United States. And the conventional bank is saying, look, you bought the cd, we're going to pay you interest on this cd. We don't care that you're, whether or not you borrow against the CD to go do something, we're going to pay you interest on that CD regardless. And so this is so important to understand that what we're describing here is where your money resides. This is the key. If it resides on the books of someone else's bank, Richard just illustrated for you what the outcome of that is going to look like versus if it resides on the books of a reputable, ideally a mutual life insurance company that you co own and you become all four characters in the financial play. The depositor, the borrower, the banker, the bank owner, then you're putting yourself at an advantage significantly financially when you compare what you're doing to what your peers are doing financially. Because this is what mainstream teaches people to do, leave your money on the books of someone else's bank. And Richard has outlined excellent, he's shown you what it looks like if all that you do is change where your money resides. That's the key to grasp from this. Your money must reside somewhere.

And, and you know, we go to the summary point of this, we go down to line 64 which is age 85 at this stage and we, we see, okay, well the retirement income drawn out by the IBC sister was 650 grand. It was 283,000 by the the CD sister. Again, both did well, one clearly did better than the other. But, but one thing that we didn't discuss or mention at any point in time is because this, this whole diagram, this whole, you know, scenario is based on the focus on the process of banking and who's controlling it. Nothing was said about also having a death benefit. But in this scenario, the IBC twin does have A death benefit. And so not only did she get all this tax free income coming out, she's also able to leave $1.3 million tax free behind at that stage of the game, which is where's the death benefit for the CD sister?

It's non existent because no account value. Even if she had term insurance, which we didn't factor in the cost of that anywhere in here either because in order to be fair, it's going to expire by that age anyhow. So she, she probably doesn't have anything. It's certainly not part of the scenario. Whereas it's built in automatically on the infinite banking sister side as part of the scenario, no matter what. That is a drastic stark contrast between one method of buying cars which is profitable, and another method of buying cars which is profitable. When we say profitable doesn't mean that it was profitable buying cars. It was profitable self financing and containing the money flow that would have went towards cars.

Yeah, you're not permanently transferring the money away from you. That's, that's the key. And if Nelson is describing dividend withdrawals in retirement, then there is going to be a taxable event triggered. But this is not about addressing a taxable event. It's about what did I put in, what did I have access to while I was working my way up to that retirement income phase of my life and what was I able to gain access to in retirement? Well, it's pretty evident to anybody looking at this that the CD twin ran out of money far faster than the IBC twin. And so if you're withdrawing a dividend that you did nothing to earn and you pay some tax on it, which Nelson would never have recommended that somebody do. He's just trying to show you, look, if you do not take advantage of how to do this on a tax free basis and you just withdrew dividends and paid tax on those dividends, you're still going to come out light years ahead of the twin sister who didn't store her money on the books of the insurance company and become all four characters in the financial play. And so this example is just brilliant because what were people saying? Rich people were approaching Nelson. And we hear it all the time too. Oh, I can just go get a CD or a gic. I can practice this process.

I don't, I could practice this with my real estate and a line of credit like, okay, what, what happens when the credit lines freeze and are frozen and they taken away from you and started you an amortized loan like they did in the 2008 financial crisis. And I think some people recently, because of the interest rate spike, also saw that take place because property values weren't maintaining the same direction. Like you don't control those instruments.

And it's just, and it's just as important to, to remind ourselves that.

We'Re dealing with. Had we had dealt with policy loans, the outcome for the IBC twin would have been dramatically even that much better because there would have been more capital going back into the system as premium after year seven, and there wouldn't have.

Been any withdrawals that decreased in the early phases when they took things out. So here's another thing. Now, Nelson would kind of summarize this by talking about.

What was similar amongst both these institutions. So, yes, there's similar things taking place. We have the conventional bank owner and we have the life insurance policy. Well, both of these require hired help. They both require administrators and pencil pushers and people working at each company. So those two things are a wash between both scenarios. Each one of them requires a borrower. Someone needs, needs capital that they have, the bank has. Someone needs their money or else they're not gonna stay in business. Someone needs the life insurance company's money, they gotta put it to work or else they won't stay in business. So both of those things are awash. Both earn dividends. The bank owner, the stockholder, earns dividends, and the life insurance policy, the participating owner, earns dividends. So, but, but how they're allocated is a little bit different. And they both earn quote, unquote interest. The CD owner earns interest on her, you know, the, the, the, the c, the GIC account, CICD account. And the equivalent of that, it's not exactly interest, but it's an equivalency, is the guaranteed cash value increase on the original base policy. So it's, it's really a matter of how the earnings are allocated is really the key things. And you know, the, the thing that comes up for me here is what questions does a person need to reasonably start asking themselves about this? All right. Did both of these sisters do well? Number one. Okay, we know that's the case. Check. Were they both honest bankers? Yes, they were.

Check.

They were. Did they both conquer Parkinson's law? They set money aside, didn't touch it. They consistently made their repayments. They didn't miss the repayments. Okay, check. Did they both think long range? I think they did. Just the fact that they went seven years without touching the money, I think is an evidence of that. So. Check. They both learn how to Capitalize. These all go to Nelson's key rules. They returned the P's on the shelf. They didn't steal the P's because they created a loan schedule. They followed through. Check. Did they do business with banks? Well, one of them did. So that Nelson's four rules are don't do business with banks. Well, one of them is doing business with banks. So that, that's important to identify. Here's another couple things I think are really important. What this example doesn't usually talk about over this entire time frame of 51 years before they start taking a passive income, the GIC sister, the CD sister is dealing with bank rules and bank changes and all that kind of stuff. So even if the interest rates were completely consistent over that time, which they won't be, but that would impact both of them to some, to some varying degree, the timing of the withdrawals when you need the car isn't going to be in the same time frame. So if you're setting up a, a CD and it's a one year term, let's say, or it's a three or a four year term so she could get the interest that she needed, what happens if she, the car gets smashed and destroyed and she needs a car earlier or, or she goes in and there's a good deal and a sale in the car because you know, it's December and they're clearing out last year's stock but she's not able to access the CD because of the restriction and she would give up a bunch of interest to redeem it early. These are some of the elements of control that aren't identified in the spreadsheet. Right. They need to be identified because they're real. These exist in real life. Like you have to recognize you can't actually compare that product and this product that you can't compare them because they are fundamentally very different in the measurement of control that you have. Vastly different. Okay, and so then the follow up question becomes. And a logical person would say, okay, well what value do you place on control?

Well, look no further than the vast difference in results. And it doesn't show up in the earlier years.

Right.

When we look all the way through to year 15, we're not seeing a vast difference in results, but every year thereafter they start to appear and that gap just widens and widens and widens. And so if you think of this from the perspective of ridiculous simplicity.

We.

Identified at the very beginning of this video, you have two individuals got the same amount of money, they have the same financial objectives, but they achieve dramatically different outcomes. So think about how you're handling things, what your financial posture is as it relates to how you finance anything. We used cars in this example, but think about anything that you would otherwise pay. Cash for lease or finance. What are some of those things? Cars, property, weddings, post secondary education, appliances, recreational vehicles, the list goes on and on and on. And the way that you're presently financing these things in your life, cash, leasing or financing, you are permanently transferring that money away from you and from every generation that comes after you. When you embrace the process of becoming your own banker, the infinite banking concept, and you recognize that you don't have to be wealthy to become your own banker. And you understand the fundamental truth your money must reside somewhere. And it isn't it true at present that all of your money is flowing through the books of someone else's bank? I say that again, someone else's bank. How soon do you want to change having money flow into.

Versus through your hands? How soon do you want to change that? Rich, you and I have been engaged in this process. I was first exposed to it in July of 08. You weren't too far behind just a year and a month later in 2009. And this is what we do, this is what we specialize in. And we've never had clients call us or email us or text us and say, you know, I'm really frustrated that my cash values keep rising every day and that I have ready access capital on demand on my terms. I pay no tax on the daily buildup, I pay no tax on the death benefit proceeds. I pay no tax on the annual dividends which once declared are contractually guaranteed to be paid, can't be repossessed, can't lose value. I'm achieving a peaceful, stress free way of life financially and it's really bothering me like that just doesn't happen. But yet you watching this video, you're continuing to do things the way that everyone else is doing them financially. How does that make you feel? How's that working out for you? You owe it to yourself and to your family to investigate the infinite banking concept. Get your hands on a copy of Nelson's book. Go to watchibc.com Go to watchibc.com There's a much deeper dive on the process. And then once you see that and you read that, you're going to develop some really good insights and clarifying questions, get connected with the right person. On our team, this is what we do. We serve Canadians coast to coast. We've stretched over into the United States, serving Americans coast to coast. There's a reason why, and we're 16 now, 17 years in my case into this journey because the process works. And everything that you need to know about the concept it look no further than the book titled becoming your own banker or the books that Richard and I co authored, Cash follows the leader, Canadians guide to building wealth without risk. The most recent copy, don't spread the wealth. We have an abundance of resources for you to continue your learning journey. But the longer that you wait to regain control of your financial future, the more you penalize yourself.

Isn't that good?

Well, I think it's pretty good. But you know what I think our viewers are going to want to know is what's the next video I need to watch to get some more information?

That's a great question. And it just showed up. Credit to our editing team. There's no such thing as having arrived in knowledge. So continue that journey of learning and understand that when those twin sisters got to that retirement stage and they were sitting down having coffee together, one was crying, the other one was smiling. So thanks for watching this. This video. Thanks, Rich. That was a lot of fun.

We're practicing banking and I think it just gets to be a point where when I think about all loan when I borrow money for a vehicle, I was going to have to pay that debt somehow anyhow. I haven't changed. I was still going to save money or pay money for that vehicle.

When our children are old enough to own the contracts, these insurance contracts that we purchased on their lives, our family attorney is already preempted.