How To Build WEALTH While Paying Off Debt

You know, we are unknowingly and unwillingly most Canadians walking around today. We're actually contributing to the inflation problem because whenever we borrow money from a commercial bank, that's how they create capital out of thin air. They're sending more money into the system with less goods, Right? So the same amount of goods, there's more dollars flooding the system. So that means our dollar is losing purchasing power. Assuming that you are now sufficiently convinced that this is the course of action that you would like to take, the question that comes to mind is how do we get started? The most important word is desire. Not about numbers. It's not about your money, it's not about any of that. It's the desire. Without it you probably can't get it done. So if you had a choice to shop at home and pay interest to a company that you co own and contribute to the profitability of that business, would you rather pay interest to the insurance company that you co own or would you rather pay it to a bank that someone else owns so so that they can grow profit and share with their owners and make someone else's family wealthy?

So we're going to talk about creating a banking system. Now Nelson didn't just say, hey, become your own banker, good luck with all that. He gave us some golden rules to follow. Of course he had mentioned, hey, get a good coach, educate yourself and all those things. But the first thing that we need to do is we need to think long range. Nelson was educated as a forester and he was taught to think 75 years ahead. He taught us to think three generations ahead. I'm already thinking about my unborn potential grandkids and great grandkids that are going to show up. I'm building something today to benefit them, to expand our family wealth and to keep that wealth in the family. Don't be afraid to capitalize. The capital has to flow somewhere. If I put an itty bitty little bit of capital into my policy system, I'm going to create an itty bitty little result. If I put more volume into that system, I'm going to create a bit larger result. Don't be afraid to capitalize. Because isn't it true that all of your money is presently flowing to, through to and through somebody else's bank already today? Don't steal the piece. If we're going to access a policy loan, we need to create a schedule and pay that policy loan back. Because think of it like this, if you're going to go and access capital from someone else's bank, you would have to make a payment back to them, otherwise they're going to come and get your stuff. If you access money from savings, you're probably to pay a property tax bill or whatever it is. You're going to pile up money again. You're going to make a payment back to that savings account to pile up money to pay your property tax bill again next year. So don't steal the piece. We're going to do the exact same process with our banking system. Don't do business with banks. This is one of Nelson's golden rules. And he says, you know, we are unknowingly and unwillingly most Canadians walking around today. We're actually contributing to the inflation problem because whenever we borrow money from a commercial bank, that's how they create capital out of thin air. They're sending more money into the system with less goods. Right? So the same amount of goods, so there's more dollars flooding the system. So that means our dollar is losing purchasing power. Don't do business with banks because we're contributing to inflation. The next thing, the fifth golden rule, is to not just think, but it's to actually rethink your thinking. Okay. This requires a whole new way of thinking. We have to replace an old idea. And what I'm going to do now is I'm actually going to share a testimonial from one. This happens to be one of Jason's clients. I'm going to share a different screen here. Just going to share this Word document and show you a bit of a highlight here. Dave said, two years after opening our first policy, we took out our first policy loan and paid the bank loan on my wife's Subaru keyword right here. Redirecting the payments from the commercial bank back to our family banking system. Okay. Three years later, five years into their journey now, we took out another policy and skipped the bank entirely. So they set all the terms, using the money to buy me a brand new SUV outright. In the fifth year, we also had another child and I took out a policy on him as well as a second policy on myself with five policies. So we're expanding the banking system with five policies now in force. After seven years, our mortgage came up for renewal. Instead of renewing with the bank, we took out policy loans from each of the five policies. So there's five policies in the system, but it's only one family system. Right. Took out policy loans from each of the five policies and paid off the mortgage entirely. We're going to move into.

Some financing examples now, this is extremely important. I'm assuming you probably want to see some numbers. This is all well and good, Vern. We see the grocery store. We found out where becoming your own banker came from. We looked at the solution. This is all making sense. So far. We're receiving good value. That's all well and good. How does this actually apply in real life? What can we actually do? Show us some examples. Show us some numbers. I'm assuming that you want to see some numbers and some real live examples. There's going to be a lot of moving parts for pretty much the rest of the time today, the next couple of hours, we're going to start getting into actual numbers and case studies. Now, it's extremely important that you stay focused and stay present with us. You can go ahead and write down a question, but again, like we said earlier, don't get lost in that question because the likelihood is that question is going to get answered as we go through the content. And if it doesn't get answered, we'll give you an opportunity to get your questions answered later on today. And if worst comes to worst, if we don't get your question answered, you're going to have an opportunity to get in touch with us and create some additional clarity. Okay? So we must proceed with caution here and just focus on, on what's happening. Focus on the process as we're going through these next few examples. Okay, financing. As we mentioned earlier, we finance everything that we buy today. Whether we use cash, lease or finance it through a commercial bank, whether we're accessing for cars or investments, it's all a financing function. Now, how do people finance things in life? Like I said earlier, they lease or they finance through a third party bank, or they pay cash, personal financing, cars, appliances, furniture, home renovations, et cetera. And again, including assets and also for business. So keep in mind, we need the process of banking personally and we need the process of banking corporately. It works on both sides. There's just, it's just a bit of a different, different advantages that come with it. There's not one that's better than the other. Business financing a building, office, furniture, computer equipment, photocopiers, human resources, I mean, we have payroll, all these taxes. The capital has to come from somewhere. Anything that we pay for is a process of banking and financing. Is there a better way to go about doing things that we're doing financially today to create some tailwind? Absolutely, yes. Now we're going to dive into some of those things right now. Go ahead and get your copy of R. Nelson Nash's book, Becoming your own banker. So now we're going to walk through kind of a family example here. We introduced the IBC process in 2017 to a 40 year old. The goal was to take control of the banking. Oh, actually I should, I should highlight this. The goal or the objective? When we're implementing the process of becoming your own banker, it's really important to have clear objectives in mind. And we will help you kind of create those clear objectives. And we're going to take a look at how you're structured financially. What are your objectives, income, assets, liabilities, all that sort of stuff. And we're going to get clear about what it is that you want to create and then we're going to help you build a program, assuming there's a good fit, a good basis for us to work together. And becoming your own banker is a good fit for you and your family. We want to know what are the specific objectives you want to accomplish. In this case, the family wanted to take control of the banking function. Next car purchase coming in 2019. So they kind of knew, okay, our car is getting a little older. Build wealth for retirement without any risk and a legacy. Life insurance and protection for the family. So protection today and a legacy for the future. So some very clear and specific goals in mind. Now some facts about the family. The income to the household was 180,000 for the husband and wife. So we have a dual income home and they already were saving $25,000 per year. Now sometimes people say, oh, I don't have a lot of extra savings. There's a really important number note in Nelson's book that he shares with us. On page 65, he says, assuming that you are now sufficiently convinced that this is the course of action that you would like to take, the question that comes to mind is how do we get started? The most important word is desire. Not about numbers. It's not about your money, it's not about any of that. It's the desire. Without it, you probably can't get it done. He says, remember Parkinson's law? And we can expand on what that is at another time or read Nelson's book. But basically the work expands to meet the time allotted. Expenses rise to match income. And so if we can whip Parkinson's law, we can get ahead. He says everyone is already spending all financial resources on what he or she thinks is best. There has got to be some honest introspection at this point and a commitment. So introspection and a commitment to get out of financial Prison must be a burning passion. So, you know, I was speaking with a client the other day, and he was talking to me about capitalizing his system, and he said, vern, I took 365 days and divided that into my premium. And I realized that that was worked be $17 a day now. This isn't what you have to do. This just worked out best for him. He said, I'm literally putting $17 aside every single day as a practice because he's piling up that premium dollar so that he knows he's prepared to make his deposit next year. So instead of maybe he's not buying as many coffees or what have you, but he's just taking a small amount of money each day that could easily slip through your hands for any random expense, and he's setting it aside. So he's implementing discipline and that commitment, that desire, and what he can control. So they were saving 25,000 dol thousand dollars per year. And also they had no life insurance.

So group participation here. This is a good one. I know, Dan, you're going to kick us off here. How many cars have you purchased so far? And I just use cars because Canadians love their cars and they love car payments. So, Dan, why don't you tell us how many cars have you purchased so far? Yeah, so it's kind of embarrassing because I purchased, you know, over 14, 15 cars in my lifetime, but I've been around for a while, so that's what I'm going to use for my excuse. All right, Dan, what do you think? Prices are rising. What's the average cost of a vehicle, do you think, today? How much are we spending on a car? I think a good average to use would be 35 to 40. Now, sadly, let's go 40 and I'll say buy 50 cars. So that's pretty easy math. But we have $2 million of cash that was worked for very, very hard, and it pumped through someone else's system, and it's been permanently transferred away. $2 million, gone forever. Just think about what that could have transformed into. What could that have grown into? Here's what they did. So we're talking about car financing here. They started a policy in 2017 because, remember, they needed a car in 2019. Right. The premium that they deposited each year was 20,000 per year. They've already saved more than this each year in the bank, as we mentioned, about 25,000 per year. And they decided to save save it as premium in the policy. So again, like I said earlier, they were already directing $25,000. They're just redirecting $20,000 per year into their policy system. Now the starting death benefit on the husband at that time was 680,000. So God forbid he becomes an angel. We deposit one premium and get smacked by a bus and become an angel. No less than $680,000 would pay out tax free. So there's a lot more coming out than what's going in. But that's the worst case scenario and we do not have to die to win at the life insurance and at the process of becoming your own banker. So term and term life insurance on the wife, 500,000 because it's important to make sure that the family is taken care of.

And we can also use that term life insurance and we can convert it down the road, contractually guaranteed to expand our banking system and create more whole life policies. But if something happens to husband, family's never going to have a bad financial day as long as he's here after he's gone. And it's important whether you're a stay at home dad, a stay at home mom, if you're not earning an income today, that does not mean that you shouldn't have life insurance on your life. Because I can tell you right now, although my wife does some work for our construction company that my brother in law is the CEO of, we have a family business that he runs. She basically runs the office and she works sort of part time. But even if she were a full time stay at home mom, if something were to happen to her, it would be impossible, I mean literally impossible for me to A be even capable of doing all the things she does and B, for me to be able to be here with you day in and day out rather than be with my kids, I would need some help to take care of the home. So I would need some capital. So we need to get both parents insured no matter what. So now what we're going to do is we're going to fast forward to October of 2019. Family decided to buy this vehicle. The price tag on the vehicle was $35,000. Now what were their purchase options? The first option because they're already good at saving money, is they could pay cash. The next option is to finance it and jump through hoops and get approved and make a payment for five to eight years to a commercial bank or a dealership and, or they could lease it. So basically like a long term rental, becoming your own banker was the other option. Now each of those cars that we've all purchased the 50 or 50 plus that we identified, they were leased, purchased with cash or financed. That was the only three ways prior to discovering the process of becoming your own banker. Now let's see what happened in 2019. The car financing example. So they've got cash value of over $35,000 already in their system. So they had more than enough in cash value to access a policy loan to finance the vehicle. Now, the daily cash growth in the policy was $20 per day at that time. As I mentioned earlier, total cash value has to rise to match the total death benefit. Well, how do we find out what the daily cash growth is? I can literally log into my portal here and I can take a look at one of my policies. I can look at what the value is today, like my accessible policy loan, and I can log in tomorrow and I can see that that policy loan value, the accessible value went up. And all I have to do is subtract yesterday from today and I can find out exactly what the daily cash growth is for this policy year. Capital required to purchase the vehicle, $35,000. And the death benefit. Now, because we've been capitalizing for a couple years, has grown from $680,000 up to $750,000. So again, an increasing death benefit creates more cash value acceleration. Now, car purchase policy loan process. We have a single page policy loan document. So, hey, you're running a bank here. This is your own banking system. If you were going to take a loan from a commercial bank, you'd have to fill out an application. Probably pretty lengthy and nosy. This is a one pager. And then we input the loan requirements. $35,000, I dated, I sign it, I put my name and my policy number on there and I ship it off to the insurance company. And usually about a week, sometimes it can be delayed, but in about a week it would show up in the bank account. So a name, policy number, amount of the loan, and a check or an etf. We can have the policy loans deposited by a direct deposit ETF up to about $50,000. They will deposit that directly into your bank. Anything over above $50,000, they would have, they'd be required to send you a check. So we sign and date it and send it off to the insurance company. And there is no qualification, no consent to repayment, there are no income verification, none of that because you are the banker and the bank owner. So you get to set all the terms and all of the rules and you get to access the capital whenever you say. So now the outstanding policy Loan does not impact the cash value growth. The cash value continues to grow completely uninterrupted, as if you never touched the money in the first place.

Doesn't reduce the death benefit while alive. Now the reason why we say that I think we're going to expand on this, but the death benefit would get paid out. So if I had a $35,000 loan outstanding and I had a $750,000 death benefit, God forbid I'd become an angel. The death benefit would wipe out the $35,000 loan and the rest, approximately $715,000 would flow to my benefit. My name beneficiaries, tax free. So I wouldn't be leaving them with debt. I wouldn't be leaving them in a negative financial situation. The policy loans is even more important in terms of how the tool works and how it keeps growing and compounding. Those policy loans do not interrupt the dividend negatively. The dividend is still going to get paid on whatever schedule it was meant to be paid out at. It's not going to be reduced because you access the policy loan. It doesn't show up on the credit bureau because it is a private loan. The outstanding loan will be extinguished by the death benefit. So that's why we're completely in control of the repayment schedule. So again, just to recap, in 2019, the daily cash growth was $20 per day. The policy loan initiated was 35,000. It was received in seven days. The daily interest charge. So remember, we're in business now with the life insurance company. We are co owners. And if you were going to borrow money from your own business, you should be paying that money back with interest. Because if you borrow money out of your business, it's no longer working in the business to create more profit. So we're going to pay back the policy loan with interest. At that time it was a 7.1% annual simple interest rate. So we just round up to seven. So we just take the 35,000 and we multiply it by 0.07. Because we find out what the total amount of interest would be for the entire policy year, assuming we paid nothing back. Because as we pay back that loan, the first payment is always going to hit the principal first. It's going to bring down the principal balance. And the interest that's calculated each day is going to be calculated based on whatever the loan balance is, not the original borrowed amount. So we take that interest amount for the entire year, we divide it by 365 days so that we can find out what the daily interest amount is going to be because we want to structure the policies in a way that your interest that's being accumulated is always lower than your daily cash value. Even though we're going to get all that interest back and use it again in the future, we still want to have a system that's efficient, such that there's a net positive access to cash. So that's why it's important to work with a coach and get the policy system structured correctly. So they decided to pay back their loan. See, they decided to pay back their loan at $500 per month, or they decided that no one forced them to do that. They have total and absolute control and they wanted to pay back that loan in 84 months. So they get use and control over all that money. So the monthly cash value growth was $600. So $20 per day times 30 days. The monthly loan repayment was $500. So they're sending $500 back to their own system. So the interest.

The monthly interest was $201. So that's that 6.1%. And the family's net worth is the family net worth over this transaction. So we have our $600 of cash value growth, plus we have our $500 payment and the interest or minus the interest. So their net worth is increasing by $900 every single month. Just by changing the banking process, they can actually go back and re access more than what they're paying back because of that daily cash growth. Where else can you pay back $500 as a loan and access 900? Do we know anywhere else that we can bank that way? Is there anywhere else that we can pay money and access more like that? So this is how we start to get the banking process working for us, just by financing a vehicle. So now we're going to do a quick summary. They're building wealth. So the cash value growth while paying off the debt, the policy loan. In this case, they are the banker and the debt resides with them. So that debt's really an asset because it's attracting a stream of payments. But their cash value growth is growing every single day. And they're paying back that loan, so they're increasing their accessible value. We could do the same thing by accessing a loan and paying off debt, we can eliminate liabilities while growing wealth at the same time, just like this. But in this case, they finance the entire thing on their own. With the banking system continually compounding family wealth, building retirement nest eggs. So we're multitasking our dollars, We're Creating more than one result from one deposit, one transaction, ongoing. Creating multiple objectives and not interrupting the growth total and absolute control over the loan repayment. Do we want more control? I'm assuming the answer is yes, otherwise you probably wouldn't be here. They are their own banker Policy loan is a private arrangement between you or the owner and the life insurance company. It doesn't show up on the cred court and God forbid they become an angel if they pass away, there'd be no indebtedness left to the family because the death benefit would pay out and it would eliminate the car loan and then the death benefit. The rest of the death benefit would flow to the family tax free. The interest payment on the policy loan adds more profit to the business that he co owns. So the dividends. Now think about that for a moment. Just go back to the grocery store if we're going to pay interest anyway or we're going to give up interest that we otherwise could have earned by using our own cash. We remember what Nelson said, he was pumping money into the system in the wrong direction. So if you had a choice to shop at home and pay interest to a company that you co own and contribute to the profitability of that business, would you rather pay interest to the insurance company that you co own or would you rather pay it to a bank that someone else owns so that they can grow, profit and share with their owners and make someone else's family wealthy? Don't steal the piece. Isn't that good? That's good. Okay. Creating more access to capital for more opportunities so the cash value continues to grow, grow. By paying back the policy loans, they pay back 500 and they gain access to 900. You pay back five and you can get nine. So they're creating an ever increasing pool and when opportunities track them down as they will, they're going to have ready access to capital and be able to take advantage of those opportunities. I have an important question to ask you though. Have you purchased your last car? I know that I'm on three right now. 38 years young, probably going to need a car in the next five years or so. So if you can do this for car financing, is there anything that you can't do it for? If you were able to create a system that would allow you to not only create growth, but get back every dollar that you're going to spend financing cars for the rest of your lifetime, would that be worth it? If you had an extra 100, 200, $300,000 piled up in your system at Passive income time. Would that give you a distinct advantage over not becoming your own banker? And that's what we're talking about here. That's what's possible. Think about the cars that you still need to buy. And this is just one example. With cars, knowing what you know now, how much of your hard earned money are you willing to say goodbye to? If the answer is zero, then we can absolutely coach you in achieving it. Okay, we can. If the answer is no, I'm fine with sending off, sending more money away to the commercial bank. We want to help you reverse the flow of that capital. So we can absolutely coach you to do this. This process doesn't just apply to cars. As I mentioned, you are going to buy goods and services you're going to have to the end of time as long as you're here. So home and auto insurance, vacations, cars, assets, the furnace for the rental property or whatever it is, that is all a function of banking and it's got to be financed. So just by changing the process, how are you going to buy things moving forward? That's how we create this advantage and this perpetual tailwind that we're talking about here now. You'll make a radical financial improvement for yourself and your family and your business. Now that's important. And here's the thing that we found. The most common question that we get as a team is can you connect me with the right person on your team to take a look at my finances, financial situation and show me how to become my own banker? Well, the answer is yes, of course the answer is yes. We're more than happy to support. You have a becoming your own banker call that's designed just for that. It's a clarity call. No one's going to pressure you or twist your arm or back into a corner. The becoming your own banker call is all about determining if there's a good basis for us to work together and if we have the proper mindset for the process of becoming your own banker. Because remember, it's not a product, it is a process. So it's important to make sure that it's going to be a good fit for you and your family. That's what the becoming your own banker is call is all about. All you have to do is click the link that you've probably already received or text the word schedule to 780-809-4599. That's text the word schedule 780-809-4599 and you can reserve a date and time that works best for you to connect with one of our teammates, and we'll help you establish what those next steps are going to be, okay?