How To Build A Real Estate Empire Without Financial Strains

So I want to get into the real estate track here and I want to get everyone's mindset in the right frame of mind. So the picture of this, this house is actually a house that I sold here a few years ago. It's one that I owned for not quite a decade, but. Well, actually now that I think about it, I guess it was over a decade. You know, sometimes you, you get a couple pieces of real estate, you don't even remember how long you've, you've had them for. So this is the one I'd done a few renovations on. I had a basement suite in it. It was a good cash flowing property, but I sold it when I moved to Chilliwack B.C. and but what I want us to think about on the call, so, and everyone's at a different point in their real estate journey. So you might be a seasoned real estate investor on the call. Maybe you've got, you know, 10 plus doors, maybe you've got your first door, or maybe you're just looking to acquire your first. So wherever you're at in the journey, I just want us to think about this for a second. Imagine you had 45 properties, okay? 45, and they were 100% paid for. You didn't owe a dime to any third party lender at any kind, so you had great cash flow on them. It was 100% passive. There was, it was full management. You never had to worry about any calls, any of those midnight phone calls. The tenant move outs, you know, the boiler went, the furnace isn't working and it's, you know, Christmas Day and you know, there's a family that's living there that's wondering how they're going to keep the heat on. All these kind of things that happen. And I'm just curious, I want to do a check in for the people who are on the call. Who, who here's a real estate investor that's experienced one of those phone calls before. So if that's you, go ahead, type a Y in the chat box. I'd be putting my hand up. It's, I've had lots of interesting calls along the way. Yeah, it's fun owning real estate, that's for sure. There's a lot of, lot of positives to it. But of course there's also some, some stress that can come about. So just imagine you've got these properties, 45, fully paid for, no maintenance. If you needed to, you could access 90% of whatever those properties are worth with no questions asked. You wouldn't even have to go to a bank. You wouldn't have to fill out any Mickey Mouse stupid paperwork. You weren't worried about the interest rate spikes and all these other things that are going on in the marketplace. You had immediate access on demand to that, that equity to go and get the next deal if you needed it, or to do something else that you had in mind and it would create a passive income as long as you live. So now that you've got that picture in your mind, I want you to just think of a word. Think of a word that comes up for you when you think about what the impact of that would be in your life today. And put it in the chat box. What's the word that comes up for you if you had that available? Go ahead, type it in.

Read a few out to me, Ginger, and let me know what's coming in there.

Well, we have a great. We have freedom, we have peace, we have control. Priceless family stable joy. Priceless stress free peace, Nice.

I like that. Okay. Awesome generational wealth.

Yeah, I just keep coming.

I want to high five everybody on the call. Thank you for participating. This is amazing. This is. The impact of. This is something that is possible and it is achievable. And why is that the case? Well, I know it's the case because it happened to Nelson Nash. Now, the property that I'm talking about isn't physical real estate in the way that we think about it today. It's property in the way of contracts. Okay? Contracts. The law of contracts. And when Nelson graduated, when he passed away in March of 2019, imagine there was 17 properties that you had. Those 17 properties, you know, you have 45, 17 of them were sold immediately the day that you graduate, and they were sold 100% tax free. There was no capital gains, there was no probate you had to deal with. There was no infighting with family members trying to figure out how to sell and sort through properties at different market conditions. And dealing with realtors. Nothing wrong with dealing realtors, by the way. But, but doing all those steps that you would need to do in a typical process, when somebody passes away, they just happened on autopilot and they sold for their highest ever value that they were ever reported at. So again, just so, so empowering. Well, if you think about that, you had 17 that sold, but you still have a 45. There's still 28 that are left. So 28 of those properties pass automatically and tax free to the family that you love and care about, and they get to still reap all the Benefits and rewards of having those assets. This is what happened to Nelson Nash. It wasn't rental properties, it was life insurance contracts. The law of contracts, property contracts. So Nelson had 45 properties, 45 life insurance contracts on his that he owned and controlled. Seventeen of those, 17 of them were on his life. In other words, he was the body, he was the life insured person. So when Nelson graduated, when he passed away, there were 17 death benefit checks paid 100% tax free to his family members. Is that good or good? Okay, now the remaining life insurance contracts, he owned them, but he went, at the time that he passed, the next owner of those contracts was already declared on the, on the policy documents. So they automatically inherited those policies and there was no taxable event because they went to family members. So 28 assets passed tax free to all of his family members, most of which he had three, had three kids. And then he had a whack of grandkids and a whack of great grandkids. Okay. Now he passed most of those assets down to his children and he strategically selected who would get them. And his wife Mary, who's still with us today, also receives some of them. Now when Mary passes away, many of those 28 contracts are on Mary's life. And you know, we don't know how long Mary's going to be with us, hopefully for, for, for many years yet to come. But at some point in time, graduation will happen and when it does, as it will for all of us, there's going to be a secondary windfall, tax free event. More of those properties which have grown in value are going to sell, are going to pass and create a tax free death benefit to the loved ones. And there will still be assets that remain because Nelson insured his, his children, himself, his wife, his grandchildren and his great grandchildren. That was the power of what he was able to create over his life. So just do a quick check in. How cool would that be? If that could be, that could happen to you. Not, not the part about you passing away. I mean, we all know that's going to happen. But if you had a system like this of property value that was accumulating that you could work with and use. How cool that. Let's, let's do a scale of 1 to 10. One being. I don't think I would like that at all, Richard. That sounds too crazy. I'm out of here. And a 10 is. Holy Toledo. How do I get some of that? Let me know where we're at. Gingin, what's coming in?

We Have Danielle said you just blew my mind. And that is crazy. From Jeffrey 100 by Ida and we have 10 and infinite.

Okay. Okay, good. Well, this is, this is great. So when we talk about our real estate case study later on, I want you to think back and reflect on this component that we talked about with what happened in Nelson and think about as you is, as you go through the purchasing and buying of rental properties and doing different deals, what if you could fund those deals by utilizing the asset capacity of insurance contracts where you're storing wealth for the purpose of using it to do the things in life that you want to do, such as buying real estate. That's the thing we're going to talk about when we go through our case study today. See, wherever you are, you're at your current financial situation, your current condition, wherever it is you're looking for this ideal financial future of yours, I don't know what it is for you. You know that better than anyone else on this call, but you probably have a pretty good idea. Well, we want to figure out and we want to help you through the rest of our session today. And as we do, our ongoing education, our videos, our podcasts, et cetera, our book series, they're about helping you create increased control so that you can have a wrapper of tax free protection around you, creating a legacy. And as we do these things, as you increase control, you increase confidence and it increases your peace of mind. And as that happens, what happens is you expand, you expand your capacity, your capacity to go get more real estate. So imagine you bought your first piece of real estate. Well, if it went okay, you probably looked at buying another one. And as you know, if you, as you buy and add more and more to your, your portfolio, your experience improves, your education gets better, your confidence goes up. That allows you to expand what you're trying to do. When you build your assets. The same mindset applies for, for this. As you have access to more capital, opportunity awareness goes up. Your ability to see deals, deal flow, recognize them. Deals that were probably always there that you didn't recognize before, you now start to see them for what they are. It allows you to continue expanding so that you can create legacy continuity and you can have the wealth transfer you're looking for. A lot of this has to do with mindset though. So we're going to bring family banking in a little bit if we have enough time later. So I just want to do a quick check in who here on the call has kids or grandkids. Go ahead and type a Y or an N in the chat box. Let us know if you have any of those little rugrats like I do. And if you don't, that's totally cool as well. But just want to get an idea who's on the call today.

Yeah, we have a lot of yeses, Richard.

A lot of yeses. Okay, great. So this, you know, a lot of what we talk about today will resonate really well with you. And if you don't have kids, maybe you have them. You want one, you have nieces and nephews. The same kind of application applies. You know, Robert Kiyosaki. I'm sure a lot of people on the call are familiar with him. I know some of my journey in real estate started because I read the book Rich Dad, Poor Dad. I'm sure many people here have read that book. This is one of my favorite quotes. It's not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for. The key part there is how much you keep and then how many generations you keep it for. Those are the things that really resonate with me. And I think about that often as I think about Nelson Nash and what he taught us. Hence why a lot of what I do has to do with these. These little takes right here. And I want to get us on the same sheet of music. So imagine for a moment, you know.

I like rock music. Okay. Yeah. I like some country. I like a little bit of everything. I've got a fairly eclectic music taste. But just imagine for a moment, you've got. You walk into a. A room of your house, and there's two stereos going off. One of them is playing, like, classical Bach music or Mozart or something, and it's blasting pretty heavy. And on the other side, it's got, like, AC DC going off. There's thunderstruck or, you know, Hell's Bells or something.

Is.

Is. Is ripping off pretty loud in the background there, and they're in the same room. So would that sound really good or would sound pretty. Pretty crazy and crappy and be hard to even figure out what's going on. What do you. What do you guys think? Would you find that would be a little bit of an awkward sound?

Yeah, right.

Be kind of. Be kind of odd. Right. So the. The thing that we want to do is we need to get on the right sheet of music. You know, if. If we were listening, if they were tuned to the same station, they were playing the same song, it wouldn't sound to you, it would sound okay, so same idea. If you're playing in a band, you know, if you're, if you're reading off of two different sheets of music, then the sound is not going to sound very good. So we want to get ourselves positioned to understand a little bit about what is this tool that we're talking about. So the way that Nelson set these up is using dividend paying, participating whole life insurance. Okay? So that was the asset class that he used to develop his own system and what he taught people to do to implement this concept. It is the way it's meant to be done. So I'm not going to go into all the basics of, of the, of the insurance contract, but I want to talk a little bit how it works. So if you have a pen and paper handy, I want you to write this down. The key of this whole thing is that by age 100, age 100, the cash value CV stands for cash value. Everybody must equal the death benefit. DB is death benefit. The cash must equal the death benefit by age 100. Okay? So that is a contract. Just like if you got a mortgage and you borrowed 500 grand and you have to make a mortgage payment and after 30 years it's down to zero. You have a contract with that mortgage company. If you try to break the deal, they're going to wreck your credit, they're going to come after you, et cetera. So you're contractually obligated to make those payments and they're putting up a big chunk of money. It's the same idea with the insurance company, except it's almost in the reverse. Okay, you make a payment into getting the insurance and the insurance company puts up this huge chunk of tax free money that if you die at any point in time, they're going to pay it to your family tax free. But what also happens is they build an asset. That asset is called cash value. So you can see on my diagram here, we start out with a, with a, with a base whole life policy, whatever the size is. You can see it's this kind of light gray thing here. And then we add and we start stacking up as we go. We stack and stack and stack these things called paid up additions. Now you have the ability to, through the way we design these to, to control a lot of how you do that. There's a huge amount of flexibility. We're going to talk about that later today in our case study. But basically you can put extra deposits in premiums in. They purchase paid up death benefit right away and Those come with a cash value component instantly that helps you build up and build up and build up. And then you get to earn dividends from the life company. And those dividends get chunked right back in and they do the same job. They buy more and more paid up additions. And the end result is you have a pretty good compounding scenario that takes place here. This white line represents cash value. And so anything below this line is equity. So if you look at this line, you look anywhere below that, consider that as just like equity in a house. The difference is if you've got equity trapped in your house, a lot of times you can't access it. And today the lending rules, well, might be a little tricky to get money today based on what's going on in the lending environment. And so in this environment with the insurance company, you have contractual right to be able to access that capital and you can access 90%, that's 9, 0% of whatever that equity is on any given day. Okay? So that, that is the, that is the foundation of how this thing works. So just remember this really crystal clear. The cash must grow to equal the death benefit by age 100. It has to happen. The insurance company is obligated to do it. So every time that we increase the death benefit, this paid up addition goes up and up and up and up and up and up. And the dividend comes in and it goes up and up and up and up and up. What we're doing is we're forcing the insurance company to create a future cash flow for us. The death benefit must be realized and the cash must grow to equal it. So it's got to get faster and faster and faster as it chases after the end result. So that's what's happening in the background. Now with that in mind, I want to get into our real estate example. You know, it used to be a couple of years ago, especially in the Toronto marketplace, man, deals were everywhere. I think nowadays the deals are still there. Funding the deals has changed a little bit and a lot more people are holding their capital tight and they're a little bit hesitant maybe to let loose of the purse strings around deals nowadays. But there's still lots of stuff to be had out there. Of course, here's the way that people are used to doing these things. Okay, we have our money, we go and deposit it at a brick and mortar bank, one of the big five banks or whoever it is. You put your money on deposit, then you go find some deals and you need to fund those deals. So you fund them Using opm, other people's money. It's either the regular bank or B lenders or it's hard money or it's joint venture partners. You're using opm, but usually somewhere along the line there's a, there's a typical brick and mortar bank involved. Hey, whether you're funding down payments, you're doing private lending, you're doing rentals burst strategy, which we're going to talk about that a little bit today. And then the, the result is that you're the one that's jumping through all the hoops. So who here on the call, especially in the real estate game, has ever felt like you've had to jump through a few hoops to get a mortgage to get your deal done? Let me see in the chat box there. Help me out, Jingen.

Yeah, we have a couple LOL emojis and we have a lot of yeses coming.

Always. Okay, so I mean I could go into some fun stories about banks. I can tell you, last thing I want to do is go walk into a bank. And last time it, I was pretty frustrated in general, not, not my favorite thing. We do need them. They, they are the, they're what allows things to move through for us to get the deal. So I mean they're, they're, they're a partner in the deal whether we want them or not in a lot of ways. But what we want to get to a position of. So, so you go through this process so that you can get cash flow, you can, you can build equity, you can have capital gains, you can create the environment you want, but you're taking on all the risk and you're signing over, you know, on these debts and doing all these things and man the paperwork process to get that mortgage qualifying done is what a, what a, what a pain that that is. We want to transition people to help them figure out how can we do this where now we, we transition where we deploy our money instead of having it sit inside of a bank or, or, or regularly depositing it into a bank. What if we were funding premiums in a whole life contract and our money and our wealth was sitting there and then from that point in time we're still going to use OPM other people's money. It's just that the other people's money is going to be the insurance company that we co own. As soon as you own a participating whole life contract, the word participating means ownership. You participate in their profits. Well, it turns out they're pretty profitable and they've been doing it really well for a very long time. So they share those profits with you each and every year. So now when you borrow money against your policy as collateral, similar to like a home equity line of credit on your house, the difference is if you borrow against the home equity line of credit in your house, you don't usually earn dividends or get anything back from, you know, the main bank. If you do it with a life insurance company, you do. So now you co own the lender and the lender is charging a little bit of interest but that goes back into the profit pool for everybody. So that's kind of a little bit of how that works. So we want to implement the same process of what you're doing anyway. You're funding the same deals. The goal is to create the same kind of cash flow and capital gains. We just want to change the method of where the funding is coming from and to augment your ability to have more control. One of the additional benefits of course is just like I showed you In Nelson's example, 45 insurance contracts, 17 death benefits paid and there's 28 assets still in force today. And he's, you know, he's, he's been gone now approaching five years is the tax free windfall, that generational wealth path that we can, we can accomplish now what our goal is is not to do this overnight. You know, Rome wasn't built in a day. You've heard those expressions before. The same thing applies here. We're going to transition that over time. You're still going to use opm, you're still going to use traditional banks and things. But the goal is to try to minimize your relationship with them and to be in the driver's seat of it so that you can slowly and incrementally transition your dependence on those institutions to becoming independent with your own system. That's really what our focus is. That brings us to our case study. So here we've got a young family and this case study is loosely based actually on a client of mine. There are, you know, all the stuff dynamics have been shifting and changed but you know, loosely based on a similar scenario. So we have a FELLOW that's age 45, his birthday is in May, I pick me for a reason. It's going to talk about some of the strategy on how we design the policy for this individual. Married with two kids are under the age 10. He does need insurance protection. He doesn't really have any proper insurance. He's got some through his employer, but he doesn't have very good insurance And a lot of times when we meet with folks, this is the case. So number one, he has a problem he needs to solve and we're going to try and solve that. He has very strong family values and a desire to build a legacy. This is really a key, fundamental thing for him. And he does not like banks. You know, the last couple times he had to go through the mortgage process, he was like flipping his desk over, ripping his eyeball, you know, ripping his hair out. Just, you know, absolutely frustrated with the whole process. And I'm sure there's people on the call who are, who are like that. So I want you guys to just consider what, what status this individual is in. And now and I'm just curious, I mean there's people of different ages and you know, we've got of course men and women on here, but a lot of people with families. Just let me know is, is this something that seems normal? Are there people that you know in life that are like this? Maybe you're one of these people, but is there people that you know, they're just like this, let me know type of why in the chat box if, if you know people who are in this similar situation.

Yeah, we have a couple wise coming in and count myself as well Richard.

And, and, and this is quite common. We deal with families that are like this and we deal with people all over the map, all different ages and all different, you know, categories. But you know, this is a fairly common scenario with a lot of people that we work with. So further to that, they'd already done the education, they've already read Nelson's book, they've already gone through our education process, they've watched a webinar similar to this like you guys are on. They've, they've consumed some of our other content so that they can have a good foundational knowledge and they've already been able to make the decision that this is something they want to implement in their life. Now he's actively involved in real estate. The, his focus is on the BRRRR strategy. Buy, rehab, rent, refi, repeat, do that over again. He's got good cash flow from his existing rental real estate already. You know, when he has to do some mortgage renewals, that might change in a couple of years but as it sits right now there's some great cash flow there and he's also got his career and so combined household income is about 225,000. And right now they're going to be redirecting as they, as part of this design, they've already thought about this. They're going to be redirecting money that's already flowing through their life to look at that as funding the minimum requirement on their plan that they're going to set up. So that's what's going to be the driver on an ongoing basis for the minimum. And, and they have other cash flows coming in. So one of those areas might be their RSP contributions. Rather than continuing to do that, they're gonna say, you know what, I want more control over my money in my life. I'm gonna redirect that money that was going there and instead I'm gonna apply it here. And there's other areas in their budget that they've been able to, to do that with as well. So here's a pretty ugly house. I don't know about anyone else. When you see long grass and you drive through the neighborhoods and you see the really long grass that has been mowed for a while. Who here you can do show of hands or type of wine the chat box. Who here smells opportunity when you see that?

So one of the, one of the early things I learned on in the real estate game is like, well, look for the places where there's, everyone takes care of their lawn except for the one person that doesn't take care of the lawn. That's where the deal is. Okay.

Looks like we have a couple like minded real estate investors here as well.

Couple familiar with that. So he recently had a deal that paid out. It was a property sale with a JV and he's got 95,000 available from that previous deal. It's ready to deploy. He's already got the next deal lined up. The deals all spoken for. It's closing in about 90 days. He needs 85 for rentals and holding costs. Okay. And he wants to create long term efficiency on their capital. So he's not just thinking about this one deal as the next thing. And the only thing he's thinking about, what are all the other things going on in my life, what is, what's happening with my family situation, what are some of the things I'm doing long term in the future. I want to, I want to get a little bit off the hamster wheel and I want to get into sustainability. I don't just want to go deal to deal. I want to do something more on a sustainable side. So he wants more efficiency. So he's already got the accepted offer. Again, he needs 85. He's got private money lined up to close on the deal so that he can get the rentals done, do what he needs to, and then set up the refi when it's all complete.

And this is not their first rodeo. Okay, I found that, found this GIF image. I thought that was pretty good. This kid like, you know, helping out at the Renault and he's just singing with the hammer. I thought that was pretty fun. So I'm sure there's a few people who have maybe experienced this. I know I've swung a few hammers, done a lot of rentals in my, in my time. I don't plan on doing any anytime soon again. I don't think my wife will let me do it again. But, you know, he knows what he's doing. He's not doing all the work himself. He's got people and contracts, but he doesn't mind going and getting his hands dirty. And with all that in mind. So now we, we know what the real estate deal is. We know a little bit about the goals and the objectives of this individual and their family, what they're looking to do. Now let's talk about how we set up their program for the infinite banking concept to begin the process of implementing this and in this design. So everyone, you know, I want you to do this right now. I just want you to hold up your hand, hold your finger. Not, not to give me a thumbs up, but you got a fingerprint at the end of every finger of yours. It's unique to you, just like you've got a unique fingerprint. What, what's going on in your financial life, in your financial household. You got a financial junk drawer, I'm sure with a bunch of bills and stuff in it like everyone else does. There's different and unique things about your situation that won't overlap to everybody. So this case study won't be exactly like you. And that's okay. Just recognize the purpose of what we're doing here is we're trying to identify what was going on with this individual in their family life and how are we able to think through things, work with them hand in hand, taking their variables and implementing something that would make sense in their life given all the things they were looking to accomplish. That's really what our team is exceptional at doing. By the way. If, if, if you don't already know and maybe one of my team members can do this. You know, if you're getting a lot of value out of what we're doing today, you can always book a 15 minute call with us to get your, your program, see if this is gonna be a Fit for you, et cetera. Have a call with one of our coaches, maybe, you know, Gingin or one of the team members. You can go ahead and put that in there. You can text the word schedule to the phone number that's in the chat box and you can go ahead and get that set up. So here's, here's the program that we designed for this, this individual. So it's a $50,000 a year annual capacity. When I say capacity, that's the maximum amount that they can put into their particular, this, this particular contract. Okay. They couldn't put a dollar more in that than if they wanted to. If they want to do more, they can absolutely do more, but they need to go get another insurance contract. So my family system, I currently have 12 insurance contracts, and I'm adding number 13 as we speak again, time permitting. I'll share a little bit about that at the end. 50,000 is the maximum capacity. 12,500 is the minimum required, or what we would refer to as the base amount. It's, it's the. Think about the base as like the foundation. You know, if you go to the basement, well, that's where the foundation is located, isn't it? You know, if there's a tornado that comes by and tears the house down with the foundation still in place, yeah, sure, you got to build some new walls and everything, but the foundation still there. Okay. So the base is 12,500, which means 3,37,500 is flexible. It's up to the individual and his family if they want to put that money in. It's. It's planned for, it's a target, it's something that they want to do, and they're going to do it in this situation. But what it's doing is it's giving them a lot of control. It's giving them the ability to ebb and flow as their life shifts and changes and as deals, as deals shift and change throughout their life as well. Okay. And so what that gets them is a $500,000 starting whole life policy on, on the husband and as well as $1 million term rider for 20 years. They needed the coverage. And in fact, that's probably borderline what they need. But that was a good start for them at least getting going. So they got $1.5 million of initial coverage, which is something that was on their requirement list. It was on their, their checklist of things they needed to get done. How are we doing so far? Everybody with me?

Yes, Richard.

Okay, sweet. So anyone ever seen that movie Back to the future. I love that old Marty McFly. That guy, he knows what's going on. So I love this image.

We're going to.

We're going to help this family become time travelers, or at least the husband, and we're going to let him go back in time. We're going to do something called back dating. Okay. And the reason we wanted to do this is, number one, because we can. It made a lot of sense in their specific situation. And it had to do with the fact that we want to show you guys some of the flexibility that can exist. And I say can because really depends. Depends on your situation, depends on a lot of the variables. Insurance company we're working with and so forth. But this is one of the flexibilities that we have available in this situation. So we have an option to backdate 364 days, if you may. Remember I mentioned that his birthday was on May 15th. Okay, well, we're in October 2023 at the time of this recording or this session that we're doing. He turned 45 in May. Well, his insurance age, if we go six months from May, that puts us to November. May to November is six months. So as of November 15th, his insurance age, because he's six months closer to 46, is he'll actually be 46. So we're right at that cusp where we're able to do something really cool for him by, by doing this backdating. So we will keep him at age 45 no matter what, but we actually are able to backdate, go around the clock back to the previous year, October 2022, and we're going to able to lock his insurance age in at age 44. So who think that's pretty cool? If you think it's cool, go ahead, type cool in the chat box for me.

We start to have a lot of cool coming in.

Okay, great. Well, hopefully it's not because everyone's in Edmonton, where it probably is actually cool. No, just kidding. So, I mean, I thought it was pretty cool. So did Borat agreed with me in the design of this deal. Now, a question I have for everybody is when is a dollar worth more today or tomorrow? Who says today? And who says tomorrow? Go ahead and write it in the chat box.

We have today, Today, Yesterday.

Today, Yesterday. Well, actually, yeah. So yesterday would be, would actually be the right answer. So, you know, again, I always relate this to, like if you remember buying a can of Coke or something, you know, from the vending machine at school when you were, when you were a Kid. And it was like, used to be like a dollar or 50 cents or a different price, and now it's like 2 bucks or 250, depending on where you go. So that, that's a clear indication when a dollar's worth more. So if we're able to backdate this individual to 44 and we lock in his minimum required premium for the rest of his natural life, haven't we locked in the strongest dollar now? And then he's going to pay for it in weaker dollars. So we've, we've done some inflation hedging right there just by getting the policy set up. Now, here are some of the steps involved that took place. First off, he went and got educated. Okay. He had a meeting with someone on our team, discussed it, and there was a plan design. It probably happened over a couple of meetings to get all that set up. Had to go through a life application. Yes, it is life insurance. Get over it. It's a requirement. Okay? Then of course, you can't have a contract until you fund the premium. So we got to get that done. And because he's got a deal coming up on the table, the deal's got to be coming up in 90 days. What's actually going to happen here is we're going to switch him from annual funding, which he did year one annually. He's going to switch to monthly and pay the minimum premium in this scenario. Again, this is unique to his situation. If you can pay the whole annual, we'd obviously recommend that in his situation. There's a reason we're doing it this way. Okay. I want to really isolate some of the flexibility and the control features that he has to navigate through his real estate business. So he's going to switch to monthly, and he's funding that monthly from his regular life cash flows. Okay, that was already. We already talked about that. But he's going to take some of his extra money that he's got available, and he's going to fund the entire flexible portion of that policy immediately for year two. So year one's funded 50 grand. Year two, he's going to make one monthly payment, and then he's going to shove $37,500 into the. Into the program right away. For year two, he's going to be able to borrow from those funds to work on his renovation project. Then he'll go ahead and do his refi. He'll replace out of the refi, he'll replace the money he borrowed back to the life company, and he'll sit there Waiting for the next deal. Okay, and I'm curious. So real estate investors on a call, you have to save money. You, you, you do your, your performing, you do your spreadsheet. You, you, you do the math on all your deals. You go and you plan for maintenance and reserve account refunds, you plan for vacancy, you don't factor that into your net cash flow. But the reality is if your property's rented, you don't have the vacancy. And if there's no repairs for a while, you don't really have any repairs. So those funds end up building up and building up and building up until you eventually need them. Isn't that what happens? That's basically what happens for most real estate investors. Ina. So he's going to be able to work with that excess that's happening with his existing real estate and with the new ones that he does. And he's going to now start thinking about storing that capital in insurance contracts. So when he has a vacancy, when he has to do a repair, replace the furnace, replace the roof, etc. He's going to borrow from the insurance company's money pool because his money is in there working all the time. And he's going to go ahead and take care of the repair or the maintenance or the vacancy cost is just, he's going to change the location of where he stores that because he's got to store it anyway. Instead of doing it a brick and mortar bank, he's going to start doing it with an insurance company he co owns. Very, very powerful. Okay, so. Oh, there we go. So, so let's take a look at that deeper. So fund year one, he puts $50,000 in. Remember he's 45 years old, but we backdated him to age 44 so he's got a, he's got to pay the last year's premium because he went back in time. The moment he did that, he instantly, instantly created $120,000 of new whole life insurance death benefit. So his original whole life was 500. Boom. It just went up to 620. Then immediately thereafter, working with our team, he's gonna again, there's a bit of a, some paperwork that has to be done here. He's going to switch from being annual payment to monthly payment, pay the first monthly payment. Then he's going to do an online bill payment transaction. Boom. He's going to send in $37,500. He's going to fund that flexible premium into year two and BAM, instantly brand new death benefit will be created again. And yes, it's going to be more in the next year and then he's going to borrow to do his rentals. So so far, how is everyone doing with the steps? If you're with me, type a Y. If you're confused out of your mind, type it in.

Looks like most people are typing why as they follow through. So I just want to add in because when we switch to monthly, we can just pay the minimum required, the base premium into monthly and the additional paid up addition portion of the premium. You can make ad hoc payments before the next anniversary date. So you have almost 12 months to do that, right, Richard?

That's right, yeah. Thanks, Jinjian. So you've got a one year clock and the year isn't January 1st to December 31st. The year is policy start date to the next year policy start date. So, you know, I have, I have a lot, I've done a lot of backdating on policies of mine. So I have like three policies where February 10th is the start date. So February is a big month for me because I got to pay a lot of policy premium. I get to pay a lot of policy premium, which is wonderful. It's also when I get a dividend party. And that's because my birthday is August 10th. So six months back I backdated and so I have several policies that come due at that time. So the anniversary date is February 10th to February 10th every year. Okay. Same scenario with this guy. It's just he's on the other end of the, the year. He's in October. So now, okay, so we got, we did this. He's basically one month in. He's a, he's a year and a month in, in, in, in the reality of the policy. But in actual time, he's only in the first month, isn't he? Okay. He's gained 242,000 of brand new tax free death benefit immediately.

All right.

And as you remember, he had 95,000 sitting aside to fund his next deal that came out of his last deal. He was already there. So that's where we were working with his own variables. So now he's paying that monthly payment out of his regular cash flow. He's redirected other cash flow to pay the monthly. That's where it was coming from. He immediately takes a policy loan of $70,000, 70,500. That's what he can access out of the policy right away. So where are we at? Let's kind of summarize a few things. So what has he done so far? He's put in $88,575 on day one, $50,000 for the first year. He funded the flexible premium portion or paid up addition premium of $37,500. And he made one monthly payment and he's funding those monthly payments out of his regular cash flow. He's got collateral available. He can access a policy loan from the life company with no questions asked. He now can do a, literally click a button and do it online. And the money can be in his bank account in about, let's say, four to five days. Four to five business days, give or take. He's got an asset value of $78,500 in the policy and he's increased his legacy. So he got a brand new policy, had no death benefit before, so now his family's protected. They weren't. We got $1,500,000 of insurance coverage and we added $242,000 of whole life boom in the first month. That becomes a future cash flow. I'm going to talk more about that in a little bit. So this is what's, what's happened in this whole time frame. He's got liquidity of approximately 80% of every dollar he's put in. He's put in 88 and change. He's accessing 70. He's accessing about 80% of every dollar so far in his first deal. So he's got the deal he needs to. He needs 85 grand for his rental project. He had 95,000. He used $87,500 plus one monthly payment. But the monthly payment's coming from his regular cash flow. He only used $87,500 of the money he had sitting aside. So he still has some of that money available. He takes a policy loan. He has total control over it. He does not need to make a loan repayment. We want him to do that. We're going to teach him how to do that. We're going to coach him on why that's important. That's part of the education process. But he's not required to make a more a monthly payment. He gets to choose the payment schedule. So now he's got 70,500 plus what's still available from his original money. He's got 78,000 to work with. Now rentals, anyone that's done a Renault, you know that rentals take time. That doesn't all happen immediately. And sometimes contractors are late or things don't come in or, I don't know, there's a pandemic. And you can't get lumber. Like all these things happen that can screw up your rental project a little bit. So they take a little bit of time. He's planning about four months for this to go on before he can, he can either either put the property back on the market or go ahead and do his refi. In this case, he's going to, he's going to do the refi, but he's prepared to sell it if he needs to. His policy is going to keep growing at this stage. This particular policy will have about $22 a day in daily cash value growth before he receives the dividend in the second year. That's what's happening in it at that point. So in a few more months, he'll have actually access to some more capital he can access out of the policy yet again. So this is what's happening as he's looking to close in on his deal. So let's summarize that. We got a problem here. There's $5,000 Richard missing. He needs 85 grand to do the, to do the reno. He's only got about $80,000 to work with. Where's the other $5,000? I think it's important to ask that question. So let's take a look.

And, well, you know, before I do that, I guess I'd like to hear from other people. If you're, if you're a real estate investor, you're, you're funding rentals, you're closing in on the, on the project, you, you're using money as you go through a four month time frame. Where would you get other money from to close on the last $5,000? What are some areas that you could go to find it? Let's, let's see what everyone says in the chat box.

You have heloc, private lender, family.

Daniel says cash value.

Oh, cash value. Okay. Yeah, good, good. Okay. So, yeah, exactly. I mean, this is common HELOC credit card. I mean we're probably only doing the last, the last few items that need to be done in that last month of the reno. So you know, he, he was going to be using those things anyway if he needed to dip into them. So he's got, got a personal line of credit. He's got a HELOC already, so he has access to the rest that he needs so he can complet.

It's not really a big issue, but I just wanted us to, I want to recognize I'm not hiding $5,000 anywhere. Like he has the ability to tap in Extra capital if he needs to. So let's talk a little bit about this policy loan. He takes the policy loan, he goes logs into his online system with the life insurance company. He opens up, he clicks on the values tab, he clicks on request a loan. He fills in three boxes and he hits submit and it says, your loan request is being processed. Okay? That's how simple it is. You can check your online account as often as you want to see the loan balance, to see the loan available. It's very, very simple. Now, not every insurance carrier has that. We primarily work with one because it has all these amazing variables with it. The current policy loan rate is 6.5%. The insurance company. A policy loan is an invested asset of the insurance company. If you co own the insurance company, you need them to put money to work for the benefit of everyone that's in that company. This is one of the areas that they put money to work. Okay. But it's basically like a line of credit. It's like a heloc, except there's no payments required. Most every other line of credit requires a minimum monthly payment or a minimum interest payment. That is not the case here. You want to do that? We're going to coach you to do that. It's important to recognize the power of payments. Your mindset is the most important feature of all this. So we've talked a lot about what the policy allows you to do. But if we're not thinking correctly or we're, you know what, you know, you're the one that could effectively ruin this, not the insurance company. So we need to have the right mindset in place and we spend a lot of our time and our education and our coaching on doing that. But let's take a look at this as what happens. Let's actually look at him. So he's got the deal now. He's got access to the money. He can take 70,500 policy loan, but he's starting the rental. He doesn't need to take 70 grand out right now. He's not paying a contractor $70,000 immediately. He's going to slowly start paying out amounts of money. So let's say in month one, he takes a $20,000 policy loan and then he starts paying. He uses his credit card, he buys material, gets the things that he needs, and then he takes a $20,000 loan and he pays off his credit card so he gets all the points so that he can take his family on a nice vacation on his credit card. Is that a good deal? I think so. He's not paying any interest to the credit card company. This $70,500 is his future operating line of credit, and it's going to continue growing. So let's look at month number one. He took 20,000 out, and the interest rate is six and a half percent. That's $1,300 over the course of a year. But we're not at a year, we're at one month. So we divide that by 12. This quote, unquote interest only payment is $108. Right? He borrowed 26 and a half. It's only for one month. It's $108. Now, I want to talk to you a little bit about the insurance company. The insurance company has this big giant money pool. It's called the general fund. Policy owners, just like this people, they put premium deposits in to the money pool. They can access policy loans. Okay? The policy loans land in their checking account. They can use it to go do buy cars, buy real estate, fund contractors, buy stuff at Home Depot, whatever they need to do. Then out of their checking account, they can make loan repayments back to the money pool. At the end of the year, they share profits with the owners. That's called a dividend. It's part of the divisible surplus. That's basically how this works. It's really very simple. Money goes in, you can access some money out from them. It's not the same money. It's a different pile of money. You make some repayments. Whatever you repay, you can access again. Everything seems to move around pretty good. They've been managing the money for over a hundred years, really well, and they've been profitable for a long time. So they've got a really good system in place. You get to participate in that system. You're literally just like plugging into it. And you're now changing the way that you move money throughout your life. Okay? Very simple. So month number two, he takes another $20,000. Got to pay some contractors, got to pay the drywall guy, the taper, the mudder, and, you know, the electrician. We had to do a panel upgrade, all this kind of stuff. All right? So now we've got 40,000 that's borrowed six and a half percent. That's 2600 for the year. But it's only. It's only been one month with 40 grand. So the monthly interest now in month two is $216. Month three, let's take another 20 grand. Cool. We've got 60 grand. It's a monthly interest of 325, month four, we take 12. Five. He's, he had 70,000 and change. And then the policy kept growing from month one to month four. Because it kept growing at, you know, 22 bucks a day. He was able to access more policy loan value by the end of month four. So he takes out a little bit more. He's now got 72,500 outside of the policy and divide that by 12. His now monthly interest payment is less than 400 bucks a month. Okay, so he had 100 and 216 and then 325 and now, you know, 400 bucks and he's four months in and his renovation is complete. So over that timeframe again, let's assume, Tom, let's assume he has three more months. Maybe because for whatever reason, he had some struggle with the bank. It's a difficult lending environment. He had tough time getting the lending sorted out. Maybe he didn't get his tax return completed on time to get the refi done. Maybe there was a lull. I'm just adding three extra months of holding cost into the deal. Does that make sense? So let's just say something happened. He's got three extra months of holding cost in there. So I just want to be a little bit more conservative. Meanwhile, while this whole thing is taking place, his policy continues growing every single day while the money is borrowed. That is very, very important for everyone to understand. Okay, let's summarize the borrowing. I did a little bit of calculating, you know, just like this little kitty cat there. I plugged in the numbers. So month one, two and three, we add those together. Month four and then months five to seven, I'm adding some extra holding cost in here. We add all these quote unquote interest payments. That would be 20 less than 20 $300 over the seven month time frame. He had the money borrowed from the life company. Now, in my example, I'm assuming he actually made a monthly payment and he paid a simple interest payment. He does not have to do that. If he didn't make payments and he just let the interest roll up a little bit, which he can totally do. It might be more like 25 or 20$600 of combined interest, but it's going to be pretty close to that. Okay, everybody with me on what's happening so far. He borrowed the money from the life company. He got the money in about five to seven days. He borrowed 20 grand a month. He paid his credit card, he bought material, he paid contractors. He did it again. He did it again. He did it again. Now he's refined a property. When the refi is done, what does he do with the refi money?

Puts it back on the policy loan and then he waits there till the next deal comes around. Very simple. Okay, so we've all been on the hamster wheel before. I found this cool image of this guy. It looks like he's kind of on the hamster wheel. I mean, that's pretty incredible. I wish I could do that move. But this is the circle of us trying to get qualified again for the next deal. One of the key things that happens when he goes to refinance, he's got to go through debt servicing again. And the policy loan doesn't show up anywhere to show up on his credit report, the mortgage. You know, the lender doesn't see that anywhere. He doesn't have to tell them that he's servicing interest only payment on this 70 grand. So it has no impact on his ability to get new financing on debt servicing. If anything, it actually helps because if he went and used his HELOC to do all that, he's got an increased interest only payment that he has to debt service that could interfere with his ability to qualify for the refi. Does that make sense? So he's actually increased his control in other areas beyond just the fact that he was able to access capital from the policy and not have to make a payment. So there's many layers of control that's being added in here as we go. So let's take a little summary. Did we meet all the objectives? He needed insurance, protection, had to protect his family. He wanted to build a lasting legacy. He hates banks. He's avoided to some degree, he's transitioned a little bit over time some of his dependency on banks in this first deal and therefore in future deals. For every future deal he wants to do. Okay, he needed access to $85,000 to do his deal. That's what his math showed on his Performa. You know, I've got a little asterisk there in my example and how we built the contract. He didn't have access to all 85, but boy, he only needed an extra 5,000 to figure out the gap. He was pretty well sorted to get it done, which everyone agree with me. That we able to help him meet that objective pretty closely wasn't exact, but given the circumstance, I think we came pretty close. He wanted to create long term efficiency on his capital to meet lifelong goals. I think we're on track to do that. Let's take a look at some highlights of what happened. You know what? I'm going to just do a quick value check in Jingen. Let me know. Scale of 1 to 10, guys, is this a good case study? You're getting value out of what we're doing here and how we set this up? 10 is you get a lot of value. A1 is. I wish I was watching paint dry.

F. 10. Yes, yes, yes. We have a number that is over 100 million.

10.

10. 9.9. Shirley says infinite have 9.

9. 9.

Sorry. 10, 10, and 1. 9. Mostly tens.

All right, so thanks for sharing, guys. I'm glad. I'm glad it's working out here. Okay, so let's. Let's summarize some of the things that happened here. Okay, so in this particular contract for this individual, again, he's 45, but we backdated to 44. So in year three to four. Now year three to four is year three to four of the policy. Not. Not three or four years from now. Year three is. Actually starts next year. He funds one more premium, and it starts the next year. That makes sense. So he's much closer to that. Well, if he puts $50,000 in at the beginning of year three or he continues making a monthly payment and then he. Sorry, knocked my mic right over. Getting too excited over here. And then he funds the 37,500 flexible premium because he's built that up from his other resources. At the end of that year, from policy year three to four, his policy will increase 52,200. So he would be putting in 50, and it's going to be growing $52,000. At the end of the year five, year five of the policy. Not. Not five years from now, he would have a cash value of $254,000. Year 10, it would be $600,000. The increase from year 9 to 10 was 76 grand. So if he funds 50 grand, year 9 for year 9 to 10, the growth is 76,000. Okay, and I've got a couple other highlights here. Now let's. Let's take a look at this. So in year three to four, he put in 50 grand. He funded the premium. The growth was 52. In the end of year five, he's five years in. He's put 50 grand for five years. He didn't have to do that. He wanted to do that. He chose to do that. 50,000 went in. He would have $254,000 in his asset column, of which he could borrow 90%. At the end of that year, year 10, if he keeps funding, he's put in 500 grand. He's got 600 in year year nine. Again. Again, he. So he grew 76, but he only put 50 in. Remember, he can't put more than 50 in a year. It'll only accept the container size, will only accept $50,000 of premium. If he wants to put more in, he's got to go get a new contract. He's got to contact his coach and book a meeting and talk about how they build another part of his system. At the end of year 15, we're 15 years in. If he keeps doing the 50,000, he would have put in 750,000 of inputs into that policy and he'd have an asset value of 1 million 35 at the end of year 20. 50,000. 20 years is 1 million bucks. He has an asset of 1.6. This is not an investment, you guys. I'm not bringing this up to get you thinking about that. I want you to recognize that once you get a machine built and if you put money into the machine and the machine is growing greater than what you put into it, if you had a bank account where every time you put $50,000 into the bank account at the end of the year there was 52 grand in there and you knew that as you continue to do that, it would grow on an incremental basis. That is what we're really talking about here. Now, what also happened is the death benefit went up years. In year three, at the end of year year four, it's 2,100,000. At the end of year 10, it's $2.7 million. And at the end of year 20, it's $4 million. He started at $1,500,000. And at the end of the 20th year, by continuing this funding process, now he's up to $4 million. Here's the fun part. Remember, we had term insurance on there. He had to protect his young family. So he couldn't do all of this in whole life. He had to have some term insurance there for strategic reasons. That's something that you discuss with your coach to understand how that works in this scenario at year 21, that term insurance is going to jump up in price. It's going to renew at a very expensive rate. He doesn't need it anymore because he's built up this incredible whole life asset. So if he gets rid of the term insurance, he drops a million dollars off. He still has $3 million a whole life and it's growing every single year. That's the power of the legacy that we're building here, okay, now, 500,000 was a starting whole life. And at the end of the 20th year, he's 65 years old and he's got $3 million a whole life. That's a six times growth in the death benefit. Remind me, I get someone to type in the chat box. What has to happen by age 100?

What do we got?

Equal cash value equals death benefit.

Boom. I'm high fives to everybody. High fives. Cash value has to equal the death benefit. So his death benefit was 500,000 of whole life on day one. Now it's 3 million. The cash is rising and rising and rising. It's got to grow to equal the future death benefit. Okay, if he's 65, it's going to keep going based on that, he's already six times. In other words, he's created future cash flow. And in this example, what I did is I said, okay, he's gonna choose, quote, unquote, choose. I love doing air quotes, by the way. It reminds me of a Saturday Night Live, Chris Farley era days for anyone who remembers that. So he's gonna, he's gonna go ahead and, and choose to stop paying the premium. If it were me, I wouldn't do that. I would keep paying the premium. But for the purpose of my example, let's just say 65. He's going to not pay it anymore, even though it'd be far better if he did. And he's not going to put another dollar in all the way from 65 to age 100. If that is the case, that policy would grow and the death benefit and the cash value would be equal, and they would be $8.1 million. Assume that dividends are similar and consistent to what they are today all the way out to that stage. So in other words, his cash value at age 65 is 1.6 million. And it's got to grow to equal this 8.1 million. So that's the jelly in the sandwich. They like to say the difference between this guy and this guy is 6.5 million. That is a future cash flow. That is a guaranteed outcome as long as he, you know, doesn't cancel the contract. Now, if he dies early, the death benefit is higher. And if he's got an outstanding policy loan, it pays off the loan and his family gets the rest of it, guaranteed tax free. That is the power of what we're building here, okay? It solves a lot of problems. Now, before I jump into the, the next session, I just want to do another quick check in. How we doing on time, Jim? Jen, I'm not watching the clock very much so let me know where we're at on time.

We're good. We're one hour, one hour ten minutes in.

Okay. Okay. I've got a few more things to show you guys. We kind of cleared up the case study. I want to talk a little bit about an example of mine. If everyone give me permission, you let me know. I don't want to go over time here today but if you want me to go over some of these examples type a wine in the chat box. Let me know if I can keep going or if we should just open it up for questions.

Great, thank you so much Richard. I'm blown away by this great example. Really shows the flexibilities and the control with what we can do. And remember Nelson Nash said, you know, infinite banking concept is a exercising imagination, logic, reason and prophecy. So I think this example really hit the nail on the head. We have a lot of yeses and I also want to do a quick value check in if you are really enjoy Richard's example today. The presentation today you great. Oh yeah, we have a great presentation return here on the comments return if you can't see it. We would love if you leave us a Google review as well. You know we have over.

That'd be great.

Yeah, we'll really appreciate that and that always give us a lot of energies to keep doing. And Richard, you're doing fantastic and I think you can go ahead.

Thanks Jenny. Okay, I appreciate that. Thanks everybody. I'll do my best to kind of try to keep us on time here. Okay so.

I'm sure everyone on this, this, this call today has had life happen to them. Maybe one of the things on the list here, it happens in different ways. It happens certainly in real estate. You know literally yesterday I was working on this presentation and I went to go pet my 80 pound Bernadoodle dog and he jumped up and he, he, he headbutted me right in the chin. So I'm surprised I don't have a bruise today. That's an example of.

Right.

The real, real problems that we have.

Right.

So I'm going to, I'm going to walk you through. I like to call these two by four moments. These are the two by four moments in life. Some of them are bigger than others. And this is going to be one, it's going to be a personal story of mine. It has to do with a principal residence that I owned and so it's not another is a real estate oriented example, but it's not, not in the, in a, in a cash flow oriented property. But I think it's interesting so I'm going to share it with everybody. So this begins in 2014. So in August of 2014 I got married to my beautiful wife in Jasper, Alberta. So if anyone's ever been to Jasper, it's one of the most beautiful places on planet earth. We have a lot of, a lot of love for that location. We had an amazing wedding at Jasper Park Lodge. And you know, the one thing about weddings is, you know, they're kind of expensive. You gotta have some money to take care of that. So that drained the bank account a little bit. The policy loan account actually is what it drained. You could say to some degree. I'm probably still paying that off. And right around that time, shortly thereafter we made an offer on a property. It was late August and I've always wanted to move back to an acreage. I grew up on an acreage in a small community outside of Edmonton called Hay Lakes, Alberta. You know, it was a very small community. I grew up on 10 acres surrounded by farms, jumping into people's tractors and building fences and doing all this kind of stuff that I was really used to. So I really wanted to have a place where there were certain lessons about growing up on a place like that that I wanted my own children to learn and I didn't think I'd be able to teach them that in the city environment. So we went and purchased this acreage, made an offer and had it accepted. And it was going to be that dream property. I told lots of people I would never ever leave this property. I fully expected I was going to die there because I thought, this is it, this is the one. I'm never leaving it. And it wasn't even that I loved the house, I just loved the land, the yard, the location. There was a beautiful trail system in the back. It had a lot of other great things going for it. What I didn't realize is that it would turn into a bit of a money pit.

So this is what actually took place. I'm just going to summarize by crunching some of the numbers for you guys here. We purchased it, we made the offer, had it accepted in August. We took possession at the end of November. We were actually in Mexico at an infinite banking training event when we took possession of the property and the purchase price was 630,000. The mortgage balance, I put 10% down at that point. I had to. I just paid for the Wedding. Although I hadn't finished paying for it, policy loans had. I had to refi another rental property to free up capital to pay off a tax bill that I owed so that I could qualify to get this property as a self employed individual at that time. So there was a lot of things happening around this and we had the down payment, we had some closing costs. So the summary is I had $65,000 in the deal. Okay, so everybody remember at 65 grand in the deal. Now something happened right before COVID My wife and I were registering our son for kindergarten at the local school right by the acreage and we really actually were interested in school. We were excited that the school is pretty close, but it was a pretty abysmal winter and we'd had two pretty crappy winters and we'd actually had two fairly crappy summers. We had a lot of mosquitoes. It was actually, we had a lot of rain. Like, well, so much rain. We might as well live in Vancouver. Like we were having some, like the weather didn't participate with us very well for about 24 months. And, and there was a lot of work happening on the acreage that was making life a little bit more difficult than we anticipated. So maybe we bit off more than we can chew, I'm not sure. But the end result is we decided that we were going to move to Chilliwack B.C. and we wanted a different lifestyle. So we made a lifestyle decision. And, and, and it was not planned, it was not expected. It started on January 1st of 2020. And you know, we, we made this decision and we thought, you know what we'll do, we'll go and we'll, we'll move for a year, we'll rent our place, we'll do a little quick rental, we'll rent it, we'll keep it, we'll, we'll, we'll try BC for one year and if we don't like it, we'll come back. That's what our thought process was. Once we got deeper down the path and we were, we were, a few months later on we decided, you know what, let's just sell it and not deal with the hassle because I don't want to be doing the long distance thing. I got to focus on our business. So let's just go ahead and put it up. Well, the end result is we had to drop the price a number of times and we, the final selling price was 563. We had to pay off the mortgage balance and our payout penalty went up. So, you know, A lot of things going on with interest rates right now. People are really aware of obviously the rising interest rates today. But if we go back a few years, we go back to, I think it's like 2017, roughly. We were starting to see interest rates rise at that time because my wife and I decided that we were never leaving this acreage. I said, you know what, we have a lot of other uncertainties in our life, things that are going on with our business. We had two young kids then at that point, and there was a lot of things that were a little bit uncertain. I said, what I'm going to do is I'm going to stabilize at least one item I am going to lock in. And now normally I wouldn't do that. I've been a variable guy pretty much through and through for 20 some odd years. And I've had a lot of success on the variables. And it's only when I locked in that I ever kind of get bit a little bit. However we made that decision to lock in. Well, that was earlier on. And when Covid began, rates actually dropped again. And so the payout penalty when we decided to sell was only 3,000 bucks and it tripled by the time we actually sold. So that kind of sucked. And I thought it would be important to share that because again, that's part of the real estate game. So we had some realtor fees, of course, I was a realtor, I knew a lot of people. So I got a pretty good deal on that. That, and the end result is we got $44,000 out. So let's, let's, let's, let's take a look a little bit deeper at the deal. So I built a big deck out front. I built a salon in there for my wife. She's a hair stylist. And we spent a bunch of money doing that. We did a big reno on a bunch of things. Flooring, heated flooring, took out a little wall, new carpet, finished off some aspects, some, some wall building in the basement, a number of other things. When I add up all the things that we did over a six year period, and a lot of it was at the rate at the end, I had to do an upgrade to the septic system. Some rentals for sales, about 15 grand. The deck in the salon was about 10. Two furnaces, air conditioning unit, hot water tank, also a pump for the cistern, upgraded the electrical. In fact, during the home inspection, if I was an electrician, if I was doing that with a client, I would have told him not to buy the house. But because I knew what to do, I was willing to buy the house. The electrical was pretty bad in the property and I had to do a roof on the shop. So about 80 grand worth of stuff. A lot of that, a lot of that was actually near the end, so probably about.

I don't know, maybe 50k. Well, not 50, but 45 of that or so was, was right near the end of the last year. So we take the 65 I put in the property plus the 80 I put in over the six years. I have 145 grand into the deal and I got 44 grand out. How am I doing so far on this particular deal? Obviously it wasn't a cash flowing piece of real estate. I get that. But how do you guys think about my deal so far? Is it good or good?

Probably could have gone a little bit better for me. Right.

Sorry, Richard.

So the end result is this hundred thousand dollar learning opportunity was one of the best $100,000 I ever spent. The move that we've had to bc the lifestyle change has actually been worth every dollar because of the quality of our life. And my family has gone up drastically. The reason I want to share the story is that life happens to all of us and I am no exception. Okay. So even throughout all of this, I was still able to use and grow my family's banking system. That's part of what I want to share.

So let's take it one step further. I had to make mortgage payments when I was there. I obviously I needed to live. So I didn't have anything around that it was an expensive property, is a little bit more than I could, I could chew at the time. But I managed it regardless. We made $185,000 worth of mortgage payments and we paid out 82 grand in principal. Now this is during a very low interest rate environment. That means 103 grand went to banks in interest. If you take 103,000 and you divide that by the all the payments over the six years that we lived there, 56 cents of every single dollar I paid a bank went directly to interest. That's called volume. Nelson Nash taught us about interest volume. Understanding interest volume and interest rates, yes, they're important, but interest volume is far more important. What is the physical amount of money that's going to leave your pocket and go to someone else's bank that you will never ever see again? This is what becoming your own banker is about, solving the problem for. And it does happen over time. Nothing happens overnight. But this is the area that we really want to put our energy on where we can reclaim this, this cash flow, suck this drain throughout life. And we want to put that back in your life so it's available for your, for your retirement years, for your passive income and for your children. That's the key. So I'm going to shift into a little bit of my, my. How are we doing for time? Jen? Jen, I'm going to talk a little bit my family system here. Do we have still have time for that? Let me know.

Yeah, we should still have about 35 minutes.

Oh, geez. Okay, great.

With Q and A.

Yes, with Q. With Q and A. Okay.

And a lot of yeses. Wanting you to continue, please.

Okay, so here's a, here's a little summary of my family system. I did a presentation on this in our family banking event in Vancouver in April last year. So some of the numbers are from April. There's a couple of updated ones. I'm in my 14th year of doing this. So as I roll into next year I'll be, I'll be in year 15 was we were approaching that. I started my very first policy for $4,219 a year. Now I didn't have $4,219 a year and I'm not going to suggest anyone does what I does. It's not, it's not a. Not a good idea is just the truth. And all progress begins with telling the truth. Okay. I wasn't going to teach someone how to do what was in Nelson Nash's book, the idea of becoming your own banker. If I didn't have an insurance policy to, you know, it would be out of integrity, it wouldn't be congruent and I just refused to do that. So I had to get started with something. I didn't have $4219 so I borrowed off a TD line of credit to get started. We never recommend that. It's just what my circumstance was. It was the only thing I could think about doing to get going. Okay. And, and so that's, that's how I began my journey. Now I have 12 policies in my family system and I have. Number 13 is an application. Presently I expect it to be approved. Well, I already am sure it's going to be approved, but I expect it to be able to be funded in the next two to three weeks. The policies in all 12 of them, they range from $1,000 a year up to $90,000 a year. As the capacity for each individual policy. There's a big range there between them. When I add up the minimum premium. So just like we talked about with our case study today, the minimum premium on my family system of 12 policies is 45,177. And I have 155 that is flexible. So that's the control lever I have available on a yearly basis, a lot of deposit potential. And I, I do everything I can to hit that target every year. And that's, that's grown as, of course, as I go. And I have a new one in progress right now that's going to add $27,000 into that system. And in fact, I'm back dating, I'm backdating that policy so that I can pay the entire first year, get my first dividend, and then I'm going to fund, I'm going to do back, I'm going to do exactly what I showed you guys today, basically with the new policy I'm getting. So I didn't really think about that when I was putting this together, but that's exactly what's going to happen.

So compounding happens over time. And in order to have things compound, you have to let them sit, it has to sit there and it has to build up over time. If you, if you take something out of an account that's compounding, it can't compound there anymore. You can move it and go do something else with it, but wherever it was, it stops doing motion in that environment. One of the powerful things about these insurance policies is that once the money is into the insurance policy, it continues to grow no matter what because that death, death benefit is increasing. So you're creating a compound environment, but you're not giving up control and accessibility because you can access policy loans and use the power of collateral. You have the ability to put capital to work so it's always in motion and then use other people's money, the insurance company's money to go do the things that you're working on. Okay. It took me four years to get my system up to $14,000 a year in annual premium. Okay. It was, it was a bit of a stretch for me. That was every, at every stage, it's a stretch. I'm always looking to stretch my targets and I have big goals. So that's how it happened. It took me six years to hit 40 grand a year in total premium. It took me nine years to get up to 135.

And in, in 2022, at the beginning of the year, I added three more policies onto my system and I did some backdating. Okay, at least on my wife. I added $42,000 in new premium. Okay, so one of my wife is. Is 36,000. And then I got two new policies on my. Both of my children, and they're, well, whatever, $3,600 a year or something. That was a 31% increase in the system. My family system is a big jump, and I'm now making another jump. And we're only able to do that because income is going up and assets and all those other things. The same way that you would go buy another rental property, the same way you would go look at getting the next deal for a rental property. I just look at it from an insurance contract perspective instead. So I'm always looking to add something new to my portfolio. Except my portfolio is a portfolio of insurance contracts instead of a portfolio of real estate. Doesn't mean I don't also still have a portfolio of real estate. Not all of it's doing very well, mind you. But, you know, my energy and my focus is going on to growing my warehouse so that from my warehouse I can go and deploy capital to do other things. One of those policies is a tax policy. So I pay my annual tax bill out of that policy. I take the money that I, that the CRA wants from my corporation. I fund premium first, and then I borrow from it to pay the tax bill. And then I chip away at the loan as I'm putting money away every month for next year's tax bill. So that's, that's one example of what I'm doing with that particular contract. So it took me 13 years to get to the $180,000 level, you know, and it's. I can't say it's been easy along the way. It's. Some of it's been a struggle, and there's been times that haven't been all that great. And running a business isn't always easy, as if anyone knows that, just like the real estate game isn't always easy. So life happens to us all along the path, but we have to continually think about how we progress, and we have to set big goals and big, big targets. So I did a little summary. I have my, my assistant help get some of these numbers for me. A While back on April 10, I had a summary of the whole system, and then I did another update on it on September 11th. So 150 over 154 days. My daily cash value growth was $158 a day. Tom worked out to, you know, 24 grand and change. So that's what happened in my, in my system. Now if anyone will remember, maybe you guys, someone can type it in. I want to make sure everyone was listening. Do you remember what the minimum, roughly the minimum amount of my system was that I have to fund every year. Let's see if anyone remembers from the previous slide.

Yeah, we have 47,000, 45,000. 42.

Okay, you guys are on the right track. 45 and change. And that includes, that includes riders. So I have guaranteed insurability riders for my children. I have term insurance riders, I have some critical illness riders. All of those are rented benefits. Those don't go to help grow the cash value and the policy and the death benefit. But they're important and I need them. And they're strategic for many reasons. So we design policies for many reasons and we try to check as many boxes as possible. Tom. And we have to have riders in place to do several things that we want to do in the future. Okay. So it's very strategic when we put them together. So I'm happy to pay those riders. I'm just want people to understand that that's also included in that number. So if we take a look at.

There we go. So minimum premiums today, 45,000. And the cash value growth over the year here, that 365 day period, I mean, haven't finished that 365 period. And there, there will be new premiums put in there which will change those numbers. But from this position there's, there's no additional premiums added. Okay. Which is why it's a good time frame to get these numbers. That represents $57,000 in cash value growth just in this year. Well, if you take the 57 in growth and you subtract the minimum required premium, that means that's $12,500 for the year or about $1,000 cash flow or cash accumulation available to me. That's happening. And that what's interesting is that I have elastics here. I got new, I got new policies I just told you about. I just got several new ones. A large increase, 24% of my entire system is pretty much brand new. It, it's not at that level of efficiency yet where it's what's really producing as as much of some of the older ones are essentially. But the key thing is if I, if all I did, if all I did and my wife and I chose to do is all we did is fund this minimum amount for the rest of our life.

And we never even received another dividend, this would increase every single year for the rest of our Life. Now, that's not what I'm going to do. But if. If all we did was that I have constant motion on all of the capital that I've put into these, this system, and it's just going to continually improve. Okay, that's the key. And this is what we learned from Nelson. All we're doing is, we're doing what Nelson did. We're just trying to do it at the level that we're able to and what he taught us. It's really very simple. The policy owner is always in control. No one else is pulling the puppet strings. You are the only one controlling the strings. This is very important to me personally, and that's one of the reasons why I value this system. You might have a different value proposition than I do, but that's what. What matters to me. So if. If control is important to you, if that's a word that has meaning in your life, this is an area where you get to maximize control. Does having money safe and available when you need it take away any of your options? Oh, man, I love this quote. My opinion is it doesn't. And so every once in a while, opportunity knocks, deals come around. I had a deal that showed up for me and my family in March of this year. It was around $150,000. Where do you guys think I got the money from?

It's kind of weird because I can't hear anything, so it's like crickets. But I'm pretty sure that people are. People are yelling, policy loans. Yes, everyone's yelling, policy loans.

Yeah, so, so yeah, yeah, I took, I took policy loans. And, and, and this is. This isn't an investment in a real estate deal, but it could have been. Could have been a private lending deal. It was an investment in a business structure that I know a great deal about. So it's not like I'm buying a bunch of stocks or whatever. I'm buying Tesla and stuff. This is in a. In a private business structure that I know a lot about, the, the inner dynamics of that business, its profitability and its growth plans. So for me, it's a very strategic opportunity, and I feel I have a high degree of confidence in it. So I was happy to make that decision. Now I have policy loans. And so when that business opportunity begins generating dividends and revenue, I will take the revenue. What am I going to do with it?

It's going to go back into the system. Right.

The Canfield Bank.

Canfield Family Bank. So where did my plan start.

In February 2010? This guy can you believe it? This guy right here. Would you guys do business with this guy? My wife thought this was funny. Anyway, so I do like to take goofy pictures from now and again, I'm sure most of my team at least knows that In February of 2010, my starting death benefit of my system was $148,000. That was it.

Now, what's the face value of my death benefit in 2023? At 12 policies, adding them all together, the total whole life benefit, the starting amount. So not the paid up additions, just the starting level is $2.6 million. Well, what about the paid up additions? We've been growing paid up additions. Richard, you're 12 or 13 or whatever years in here. You got some paid up additions. I've got 1.9 million in paid up additions. That's added up. That's as of April 10th is where that number lives. Okay, so if we add. Oh, I've got term riders there too. So most of the term insurance I have is actually on me. I have a little bit on my wife, but most of it's actually on me because I'm the primary income earner for my family. So if something happens to me, we need a large amount of death benefit to show up, to solve problems. Okay, so you know, we're talking about the usage of cash value here, but we can't discount the value of protecting our family and setting up the things that we need to set up while we're here. All right, so we. If I subtract the policy loans, this is again, as of April 10th, these numbers, there's $6.4 million of net death benefit on the family system. 4.2 million of that is for these guys, my wife and my two kids.

The policies on my kids obviously are in there. That's a little bit different. But most of the death benefit, I've got a little note here. 66% of the entire system is on my life. All right? That's a future cash flow. So if I have whole life amounts, the total whole life component is 4,500,000. That's the total combined starting and paid up addition, death benefit, all combined. And as of April 10, my cash value in the system was 556. That means the future cash flow I already have in place is $3.9 million. So if all I did is pay the minimum premium, I never receive a dividend I send. I don't put any flexible premium in at all for the rest of my life and for my kids lives. All we did is pay the minimum Premium. No more dividends. This is going to happen. It cannot be stopped. The only thing that stops it if someone dies, in which case you get all your money out anyway, or I cancel it because I'm an idiot. Those are the only two outcomes that can take place. Okay, and if you had $3.9 million of future cash flow that was guaranteed be accumulated, would any of you guys cancel it?

I'm going to assume that the answer is no.

We have lots of no coming in.

Okay.

This is a picture of a tree stump that is actually taken by Nelson Nash. This is a tree that, when Nelson took this picture, it was actually the same age, about the same age as Nelson. And the rings on the tree. What are the rings on the tree represent? Somebody type in the chat box for me.

The age of the tree, years of the growth.

Yeah, absolutely. Nailed it. You guys are awesome. This is a. You guys a great group. Really appreciate it. So a lot of fun for me. So I. I wanted to use this visual representation. So today I'm at about this level of the tree.

Okay.

Way out here.

Is what's remaining for it to grow. If we stopped funding it. Okay. In this example, the tree's already done. It's already dead. So my. My intent isn't to do that. I'm going to keep growing the tree, and if I keep growing the tree, well, the tree is going to get bigger and bigger and bigger, which means that future line is going to get pushed out more and more and more. Does that make sense to everybody?

Okay, type of y in the chat box, if you. If you follow what I'm saying here, if we keep growing the tree, it's going to expand, and that whole future section is just going to keep pushing out more and more and more. This is what we're building when we implement this in our. In our life. All right? And along the way, I already took 150 grand out to do some deals, and I. I just took 11 grand out and bought turf for my yard, which is amazing, by the way. I'm very happy about that. So I'm using these policy loans all the time, and I'm making repayments. I have $7,000 a month of monthly repayments going back to my system right now. It's for things that we've bought and used in our life. And I'm replenishing the pool. You know, we've got a trip to Hawaii that we're doing, which is unexpected, and I'm very excited. We've never been there, but it's also Expensive. So, hey, just like anyone else, I got to pay that price, pay it, pay Visa off. And I set up a repayment schedule so that the next time we want to go on a family trip, I have the money available in my warehouse. It's no different than using your savings and then you use some of it, and then you put it back in. Use some, and you put it back in. It's the exact same thing. The only difference is it comes out of a policy. So we do family banking meetings. We've had two of them so far. This is a picture of us in Vegas earlier this year when we had our family banking meeting. We talked about passive income and an active income. And we use the books as an example of passive income because that's a passive income source for us, not producing a lot of income, but it's going to increase as we go. And I really encourage people to do this. We do a lot of teaching and training about this. We're going to be doing a lot more of it in the future. So you can. You can look out for that. And the goal is to build a legacy. That's my goal. That's what I learned from Nelson. I saw what Nelson did. I got to see Nelson's legacy created and come to fruition, and it still exists today. You guys are part of that legacy because you're here today. You're. You're an extension of that by being here, whether you know it or not. I had the amazing ability to see Nelson one of the last times I saw him in 2016, to. To get him to meet my son when he was six months old. And, you know, Nelson, he would say, it's all about how you think. That was his number one thing. And hopefully today I've been able to give you enough context and information and some personal stories, personal to me at least, to help you start to change the way or at least consider how you think and consider what capacity you have to grow a system like this in your own family's life so you can build the things that we're building here. So you are where you are today, and you've got an ideal future out there. We want to create increased control. The more we increase the control, the more we increase confidence and peace of mind. The more we do that, the more you can create expansion. It creates more capital. You get more contracts. That's exactly what I do. It increases the legacy. By doing that, you create opportunities. You continually expand and opportunities show up. They're already there. You just don't see them. Until you have more capital to do it. That builds continuity, legacy, mindset and of course we can build in some great wealth transfer. Well, Jen, Jen, that's what I've got. That's the, that's the end of the, the dog and pony show. Should we fire, fire away some questions and see how everybody's doing? How's everybody doing? Let's, let's, let's do a value check in. How'd you like the last section? Did you guys, do you guys get some value out of that? Let me know on a scale of 1 to 10.

Lots of. Thank you for sharing. Thank you for sharing this valuable information. Awesome. Tons of value. Infinite. Awesome. 10. 10 great. 11. Love the content. 1 million. There's a lot of great comments. Thank you so much for sharing your, your family information as well.

Richard. Not. Not bad for building slides. 25 minutes before we got started, eh Jenjin?

Yeah, we got quite nervous but you did fantastic and we love, we want to thank you for the audience. We have a great participation. I want to invite all our team onto camera if you can. Our team members, our great teammates who's doing a lot of hard work at the back end taking care of the chat and Q and A.

So what are some of the questions on the Q and A button on the webinar and also on the live YouTube channel? Team?

Yeah, I'd love to get like a YouTube one. That'd be good. Is anyone watching the YouTube? Is there any, any ones on.

Who, who's, who's on that? Somebody's got it.

I, I've been on it here. I'm seeing lots of activity in the chat, in the YouTube chat. I'm just not. I don't see any, any questions. Questions.

Sorry.

Well, everybody's. While everybody's looking at pictures, I just want to encourage everyone to schedule a call and because everyone's situation is different like Richard shared, you know, some of the question might be very personal. Just encourage you to schedule a one on one call to talk to one great amazing coach team.

Awesome. Thanks Jinjin. Did you, did you say you had one there, Vern, that was available on.

To be totally fair, I can't remember specifically what they're referring to. It just says why every 90 days. Does that ring a bell?

I don't know what that was about. Oh, okay. No, I don't, I don't. I don't think I know that. Okay, well let's, let's. How about what's. What was one that came up through the day that we want to Use or is there's another one that's in the chat box if someone wants to fire them off.

I'd like to share. Richard, really loved your personal story and definitely a lot of how you use this, your own family banking system, how you demonstrate it for everyone, and it definitely, you know, took into consideration a lot of people, a lot of your journey, specifically ups and downs, and you were definitely very transparent on sharing that. We always think that our financial journey is one that only goes up, but there's only one thing that goes up, which is our family banking system. I guess, you know, just for myself, just be able to have you as a teammate. I'm sure you've seen a lot of stories that you've worked with clients in terms of real estate and some of the challenges that they've gone through. I mean, we've gone through a pretty big bull market recently with real estate, and, you know, you probably experienced that time during those fluctuating interest environments. What, what were some of the things that you. That, you know, that you could call upon to see that helped a lot of clients who maybe had those challenges with the interest rates fluctuations during, let's say in the mid-2017, 2018.

I mean, the fluctuations were just high then. But I mean, in general, like being from Alberta, I've seen a pretty big boom and a pretty big bust a few times, but, you know, definitely in the real estate category. And again, to be perfectly honest, I got, by the way, I got a lot of other slides about some really crappy stories I could tell you. But, you know, if I look at 20, you know, I look at 22 years of owning rental real estate.

I should be able to have some really good values. And I don't. If I were to, If I were to do the math, and I don't have the paperwork to go do the math, but I can. I can pretty confidently probably say I might have not. Not taking the. That one I showed you guys today, the acreage out of the equation and just putting it on the side, just, you know, in actual rental properties, I'm probably at net zero over 22 years. You know, I've got a lot of stories I can share with everyone with that. I don't, you know, it doesn't mean that I don't like real estate or I wouldn't buy more. I still would. I had some great wins, but I've also had some not so good experiences as well. You know, $28,000 special assessments and a bunch of renovations and just, just, you know, property in Fort McMurray that's, you know, one time it's worth 135 grand. It's now I probably couldn't sell for 40 grand today, you know, so there's a number of things that happen and, you know, everything looks rosy on paper, but then life has a way of changing as we go. So I'm sure a lot of those are mistakes I've made in the past, and all those are learning mistakes, and I don't begrudge any of them because they've all. Reality is I've actually made a lot of money on real estate. It just hasn't been in the real estate itself. It's been on sharing my crappy stories that I've had that have helped people realize that Richard. Yeah, Richard's a pretty good guy. He tells it like it is, and they end up doing business with me. So I would say from that vantage point, I've. I've probably made more from the stories than I have from the actual real estate itself. Doesn't mean that I wouldn't buy more real estate or I'm not interested in it, or I don't still like real estate. It just means that my experience hasn't. Hasn't worked out so far, but I've got more Runway left ahead of me. That, that's. That's all been positive, you know, but. But there has been positive times in there, and I definitely have had some great wins. They're just that all the. The negatives have now outpaced or equalized all the wins over that time frame. I'm not sure if I answered your question, but the truth is the truth, right?

Oh, no, you got definitely the scars or the experience that you can share the stories from, and people definitely get to learn from that. I also had a pretty long real estate career also in professional services, helping people in real estate. And it's a very challenging business.

Good or bad. A lot of the information that's out in the marketplace is always pushing to go into real estate and everything like that, but not many stories around. The real stories behind let's. I'll just call it the three T's, Tenants, toilets and trash and the other complications related to interest rates and other. A lot of variables that are not in your control. But there was just one thing that I hope a lot of the listeners got to take away was that your family banking system had one real thing that you can count on, which was consistent growth.

Yeah. Something I would share, Henry. Like, recently, I've had a number of people Who I've met are real estate investors and great individuals and you know, they've been really impacted by the rising rates. They've been on variables and that sort of thing and waiting for it to change and to shift and it's, it's destroyed their cash flow and you name it. So it's made life difficult. And I know, don't get me wrong, I recognize and understand that. But you know, one, one wonderful lady, amazing individual, she actually just got another policy approved. She had several properties in, in Ontario, still has them, many of them are almost paid for but the cash flow obviously was good and now it's not good. And the, you know, she hadn't been raising the, there's limitations on rent rates, raises in Ontario versus in Alberta like the rental controls. And so I think she can only go by like two and a half percent a year. But she hadn't been raising them as, as regularly. And I said, well what would happen if you go, you have these tenants that you love and you don't, you know, what have you just actually asked them? You said, look, property tax have gone way up, this has gone up, insurance costs are up. Like it's squeezing me. I want you to stay here, I want you in the property. But like we need to, I either need to ask you to leave or we need, I need to raise rent. There's no other option. She went, had a one conversation with everyone and she was able to go and do an 18, 18 to 19 hundred dollar a month cash flow change. After making that con, those conversations, she didn't want to have them but eventually she listened to some good coaching and she did it. And you know, then we made several other changes. She had two that were kind of the dogs in the portfolio. She was able to sell, she was able to realize some of that good equity before the market started to shift a little bit and she's now turned that into some private lending deals. She's got some private lending doing, you know, 15 and 16% on two deals or one year terms interest only payments. She's got arbitrage situation going on there that's pretty good. So like it was really bleak for a while when we first met, but then after multiple conversations we were able to figure out and tweak some things around her machine to get her in a more optimal state so that she could do a lot more stuff, if that makes any sense. That's just like one example and I probably have a half a dozen or more of those.

I really thought about it.

Well, I would Say, she definitely benefited from the free consultation that you provide as your coach, as her coach, to help her tweak. And all of that was for her wealth and benefit in terms of her, her journey.

Yeah. And, and it's, it's to help her be sustainable with also implementing this in her life as well. And, and they, they needed insurance, both for her and for her husband. They had term insurance that was going to renew. It was going to get very expensive. We had to change it out. They've kids. It's like, man, like, we gotta check a lot. We gotta check a lot of boxes here, but in order to check some of them, we have to solve some of this real estate stuff that you've got going on so that we can go and check the necessary boxes. And these are the kind of conversations that our team has with people so that we can, we can do our best job in helping them create sustainability and.

Build something that matters. If I had all the dollars I put into down payments and renovations and, and stuff along the way that I rent, and if I just had insurance policies over that whole time, man, I could tell you I'd have. I, I don't even want to do the math because I think I would be frustrated, and I don't. I'm not a person that likes regret, but I think I'd be actually very frustrated to see how much money I would have in cash value and policies and to know what the future cash flow would be if I would've just done it a different way. But I didn't know. And nobody knows until you find out. Until you get the book, you don't. You just don't know. So part of being here in this webinar and learning these things is that none of it matters. It's all just talk. Unless you do something about it. You have to take action. When I read Nelson's book in 2009, I said, this is what I've been looking for. I got to take action. I got to get started. And that's, you know, that's fundamentally, I think, you know, what, what, what we're hoping people will be able to take by doing sessions like this and just telling real stories? Yeah.

And definitely learned a lot. You mean you didn't just write her a policy, get it all approved and say, hope you get there, Right?

Nope.

No, I would say we've, I don't know. We've. We've probably had. We've probably had. We've had. We've had a lot of meetings over the last 12 over the last 12 months, a lot, a lot of meetings and it doesn't always work that way. But there's, you know, you, you become vested in other people and you want to, you know, you can't help yourself. Right. I mean it's. We want, we want people to be successful and you, you get vested in, in their success to some degree. That's the way it is. You want to build relationships. So what do we have for questions? Sorry, I'm, I'm just rambling here. We got. Do we have any more questions here?

You'll have two questions coming in the Q A box. One is can Canadian legislation change to affect Mac limits? By the way, Mac is US Mac limits turning tax free policies into taxable policies at some point along the duration of the policy.

Okay, so yeah, so great question, but not misaligned a little bit. So we don't have a MEC in Canada. It's called a modified endowment contract. We have something called mtar, which is a maximum taxable accrual rate which is similar. But the big difference between the US and Canada in this area is that it's kind of very Wild Westish in the US in that you can design things and build things where it's very easy to break a policy and to create problems from the policy owner's perspective and set them up. Although things might be really good for a while, 10 years, 15 years, 20 years, if you do certain things, you could actually create a problem, especially if you're not in good contact with your insurance advisor. In Canada, it's much more difficult to do that. The insurance carriers themselves, for the most part, it's not a blanket statement here, but just in general have done things to keep the guidelines tighter so that there's less capacity for you to screw it up, I guess by putting too much money into the contract or whatever. They did an overhaul to mortality rate change in 2017among a number of other things. And because of that change it has actually led to and the increase in the mortality age for the assumptions used in tax exempt room. It's actually allowed for more potential of premium dollars to go into contracts to some degree. And that was the first change that they made since 1982. So 1982 to 2017 is.

Pretty big chunk of time. I don't know if that answers the question, hopefully.

Thank you very much. The next question is regarding interest rate. Is the interest due at the end of calendar year or at anniversary of the loan?

Yeah. So interest is calculated on a daily basis and it accrues Daily. And then it's officially chargeable or charged to the policy on the anniversary date of the policy. So again, February 10th is, I have several policies that are, then they're, they're kind of all over the map. But I, I personally have several on me February 10th. So every February 10th, if I haven't paid the loan down or paid the interest or whatever for that year, it, it capitalizes at that point and it rolls into the next year. Okay? And that's fine. There's nothing wrong with that as long as it's being managed effectively and you have a good plan and a strategy in place and you're proactively managing your loan portfolio. I say loan portfolio because that's what Nelson called it.

And so it does require management. It's no different than any other area of your financial life and your budget. If you have other loans, you would manage them. If you have a savings account that's going up and down, you're going to manage that. So to the same degree that you put effort on those things, you would put effort on this, if that makes any sense. And also to that, it's really important to identify that the calendar year is when the tax year ends December 31st. And because the tax year ends there and policy start dates almost never end there, I don't think I have a single client that has a December 31st policy date. So because of those variables, things like interest write offs and all that stuff become a little bit more challenging. And to a large degree, my opinion, just an opinion, other members of my team may feel differently about this. I personally don't do anything where I write interest off on policy loans, although it's possible. I think it's just a huge, huge pain in the ass. I have no interest in doing that. I don't want to participate in the government's, you know, I'm not going to spend hours and hours of work and labor tracking a bunch of crap just to go and send something to the CRA who I don't care about anyhow. Like, I have no interest in doing that. I just want to keep it simple. You can do some of that stuff. Some people might do it. I don't. You could mess it up. It could go sideways. In fact, we have a whole video, Henry, and you and I did that, I think together. It's in our membership portal for our client membership site where we, we have a review of that and Henry spelled out several reasons why it may not be sensible to do that and what are the risks that you need to be aware of. If you are going to be, do that because you want to, you know, write off interest or whatever. So it doesn't mean it can't be done. Some people do do it. I won't. I have no interest. I just don't care. Nelson Nash would say, don't play their game. They being the powers that be over in government land and just simply secede from their way of thinking. That's. So that's my take on life, if I may add.

Imagine you are investing some really valuable time tonight learning from Richard about implementing the process of banking using a properly designed, participating whole life insurance policy. That probably, in terms of the mechanics, may become a little bit overwhelming for you at times. Now imagine you get audited by the cra by you incorrectly deducting the interest or something along those lines and trying to explain it to the cra.

But don't worry, they know all about whole life insurance, don't they? Henry?

I'm. Yeah, completely.

Just like all the insurance advisors in the country. They know all about it, don't they?

Completely.

Yeah. When you, when you said that, as soon as you said the word audit, I pictured like, like the, like the sign of the proctologist office. Like that's what you're walking into. There was that. There was that one commercial a few years. You like that one, Vern, A few years ago with, I think it was like every year, taxis, like eight. What is it, H R Block. They have these commercials where like the guy walks into the doctor's office and they're like, he's kind of like, kind of hunched over. He's like, oh, oh, I got. What do you. What do you got? Tax paying? No, I'm sorry, I can't help you with that. It's like the proctologist office. Anyway, sorry. Okay, what do we got for other questions or more questions in there?

I think our teammates did a great job taking care of most of the Q and A's. And we're almost time.

Hey, I just want to give a quick shout out here, guys. Rich, you know what I love about you, man?

What's that?

What's not to love? For one, what an amazing.

Bunch of value you brought. But what I love about you most, man, is that you're straight, you're authentic, you don't hold back. I particularly love to build off what Henry said, your two by four moments. I just love that you build that in there to show a. It's funny, but you just show real life. Right. And what this process makes possible. But what help what it can help you get through, right? And we just had on our uplift meeting today. I don't know if you were there or not, but there was a really bright shining Google review from a regular person who just shared about how fantastic and amazing of a human being you are and just how much you care. And one thing I'll add to that, just to make this about me for a second. You see things in people that they can't see in themselves. And if it wasn't for you, man, I wouldn't be here. So hats off to you, my friend. You crushed it and we appreciate you. You just continue to bring so much value.

We love you, man. Thanks, Frank.

Happy to be here, guys.

Well, I don't, I don't know if we did enough of our job, but whoever wants, wants to get their knife back. I'm happy to give it back to them. And just again, appreciate everyone for attending today and participating fully as we went along the way. And for all of the team members here who helped out as we did so, thank you so much.