How To Buy What You Want Without Getting A Loan from a Canadian Bank

Everything that you call a liability in your life today, the banker calls an asset. Right? So if I borrow money from a bank, that creates a stream of payments going back to the bank. Money leaving you as a liability, but money being received by them as an asset.

Hi there. Vern McCarty here, authorized infinite banking practitioner through the Nelson Nash Institute and infinite banking coach on the Ascendant Financial team. You know, we all have situations that we run into in life where we have a problem that shows up, an opportunity that we can take advantage, or we just need to get something that we need. And nine times out of 10, when those things show up, what does it take? It takes money. So today's video, I'm going to show you how you can get what you want without getting a loan. So make sure you stick around to the end because I'm going to show you some practical steps that you can take to start putting yourself in position where you can start getting the things that you need and eliminating financial headaches. In fact, if you like what I share in this video, make sure you click the link above where my colleague, myself and my colleague Liz Lamond share how you can avoid financial headaches in your financial life. Before I go into sharing deep details about how you can get what you want out of life, we have to examine what do we normally do with money today? If we're going to do something different in life, if we're going to practice a different approach, if we're going to change anything, the only thing that we can do is compare this new idea, this new way of doing things to whatever it is that we're already doing today. Okay. You may or may not have seen an image like this before. It might look familiar to you, especially if you've taken in any of our webinar content as it relates to the process of becoming your own banker, the infinite banking concept. And so you might recognize some of these slides that I'm about to share with you. But you can see here, it's a little blurry, so I apologize. You can see here that this says the debtor. How do we go about solving objectives today? It doesn't really matter what you're accessing money for. It could be an opportunity to maybe get your hands on a rental property, increase some cash flow or some equity. It could be, you know, maybe you're investing in cryptocurrency. Maybe you want to just top up your rsp. It doesn't matter what the opportunity is. Or maybe you have a problem like you owe some taxes to the cra. Or maybe you just have to pay property tax on your primary residence. It could be even just your home and auto insurance premium could be due. Or maybe you have a handful of debts that you want to, I hate using this word, consolidate, but you want to consolidate down and make life a little simpler. So you want to make one payment that could be a reason why you may become a debtor, right? So, or maybe you just need to go and finance a new vehicle, right? You need a reliable vehicle for you and your family. So what a lot of people do is they'll say, okay, I need a 40 or $50,000 vehicle today. I don't have 40 or $50,000 maybe saved up. Or maybe I don't want to give that 40 and $50,000 away right away. Maybe what I could do is I could go see the dealership and I can apply for a loan. And now that's why we have this red line. Here's our zero. We have this red line dropping down and we're going to go into, into debt, right? We're going to go and get that 40 or like I'm just using this as an example, 50K. And maybe it's for a vehicle. Okay, Keep things simple. Well, now what do you have to do? You have to make payments back to someone else's bank for the next five, six, in some cases eight years. So you have to work really hard to make all those payments just so that you can get back to zero. And what happens in any point in that process if the payments get interrupted, there's an economic situation or you lose your job, or you just have capital that needs to go in different directions for a more important reason. If you can't make your payments, what happens? Well, we all know that you don't own anything until you've paid it off. The dealership still owns that, so they're going to come and get your vehicle as an example. But let's assume that you know, you make your payments and everything goes hunky dory and you get all the way back to this zero line. This is five or eight years later, right? And so when you get here, you probably have some kind of other problem to solve. Or now you've got an eight year old vehicle and maybe it needs repairs, so you're probably going to go and get right back into the same cycle. So we're always borrowing money from someone else's bank and we're forced to make payments back to someone else on their terms. It's a permanent transfer of capital It's a permanent transfer of wealth away from you and your family. The money that you're working so hard for and you get the vehicle and it brings all kinds of benefits, I'm sure. But the problem is that money is always flowing away. That's what Nelson talks about in his book here, Becoming your own banker, unlocking the infinite banking concept. Nelson Nash is the founder, the pioneer of this process, becoming your own banker. And I mentioned earlier, you may recognize this slide or that visual that I just showed you. We have a playlist beside me here that you can go ahead and just click on the playlist, take in some more content if you're receiving value from this video. So far we actually have an expanded version where we share more about things that you can do to control the financing function in your life. The process of becoming your own banker. We have a 90 minute webinar that you, you're going to want to take in and get some really good value from it. So now let me go ahead and share a different approach to what you could be doing to maybe avoid jumping through the hoops of having to qualify for a loan and having to make payments to someone else's bank and having money flow away from you. What we've been taught is, hey, that's one option you can do. Borrow money at low interest rates to solve those problems. Here's another option that you might have. Hey, Ver, I know what you're already going to tell me. You're going to tell me if I want to get what I need in life, I just have to be disciplined. I have to save up money, right? So this person is what we refer to as the saver. Now what this person is doing, you see here, they start saying, this is just a visual example. They start at the zero line and let's just say same problem they want to solve. They want to get a vehicle just to keep things simple. So what they're going to do is they're now going to make deposits or some people call them payments. They're going to make payments, right? They're going to store capital in someone else's bank and pile that money up to the point where they have enough capital in that bank so that they can access that money and solve the problem. So they're going to go ahead and access the money from a savings account or what have you to finance their vehicle. In this example, if we just take a minute to think about this for a second, why might somebody actually save up money in someone else's bank? So that they can go and pay cash for a vehicle. Well, a lot of times when I ask this question to clients and prospects who are considering implementing the process of becoming their own banker, what they tell me is they're like, vern, I don't want to pay. I don't want to pay interest. Okay. Or I don't want to make payments.

They don't want to pay interest, and they don't want to make payments. Well, let's review this for just one second. Again.

If you're making deposits in someone else's bank, I already kind of highlighted that deposits, aren't they very similar to payments? You're just taking money on a scheduled approach and you're depositing in someone else's bank. It's money flowing away from you into someone else's bank. If you're making a car payment to a finance company, that's money flowing away from you going to someone else's bank. It's very similar. The other thing is, well, let's expand on payments a little bit. If you save up money in that bank to the point where you have enough capital, where you can pay cash for the vehicle, so you go, and I used 40 or 50,000 as an example last time, you're going to access all that money and you're just going to make one big payment, right? Isn't that the same thing? You're making one big payment to someone else's bank. So they have the money, you have the vehicle. Well, they have the money and you have the vehicle. Your money's gone. It's still a permanent transfer of money away from you. So what happens? You're going to probably now be down in the zero balance, right? Because we access that money to pay for the car. And guess what? Now you have to start the approach all over again. You have to start saving up again for your next vehicle or your next major approach. And if we look all the way out here, you know, 60 years or whatever that is out, I don't know how young you are today, but if we look at that and if we scroll up and we look back at our debtor example again for a moment, these are inverse of each other. But are you much further ahead by being the debtor versus being the saver? Did we really avoid many of the same headaches? You had all the stuff, but someone else ultimately had all your money the entire time. That's just something for you to think about in terms of, you know, how do we normally go about financing things? Which one gets you further ahead? Saving money versus borrowing from somebody else's bank really isn't a whole lot of difference. At the end of the day, you're still, we're still always permanently transferring money away from ourselves and our family. And once you spend a dollar, you can never get that dollar back again. Keep in mind everything that I'm sharing with you here, especially the process becoming your own banker. Money in general, it's all about how we think. Everything begins with the way that we think. And very seldom do we actually take the time to think about the process of banking and its importance in our own life and how it relates to our needs. So as you're listening to the content today and as you're going through all the videos that I pointed out earlier in the playlist beside me here, I want you to take some time to really think about what you're doing with money today and think about how money flows throughout your life. And we refer to something called the problem. The problem is that you are doing all of the work and someone else is getting all of the money and then you have to go and access money on someone else's terms. So I'm going to give you something else to think about and it requires you to think differently for a moment. Going back to my debtor saver example, you know, Nelson taught us in his book Becoming youg Own Banker, he said you're always dealing with borrowed money and you can never avoid interest. See, that's one of the biggest things I don't like paying interest. Well, you're either going to pay up interest to someone else because you had to tap into their pool of money and now you have to make payments, principal and interest back to them or you're going to give up interest you otherwise could have earned by permanently transferring money away from you and your family. So I'm going to give you a visual of what I mean by that. This is just a basic, what we call an opportunity cost calculator. Very few people, you know, you hear people talk about the lost opportunity cost or opportunity cost, but very few people really understand it and even less actually reckon with it. So again, this is one of the problems that the process of becoming your own banker can help us solve. So I'm just going to give a simple example here. So let me just say, you know, my last vehicle that I purchased actually was about 45, 46,000. So I'm just going to use the, actually, you know what that was with the interest and all that calculated in there. So let me just use approximately 39,000 I think was around the sticker price, but let's go ahead and just round that up to 40. Okay? Let's call it 40,000. This is just an example of what would be an easy, easily attainable rate of return that we could achieve on some type of a savings or an investment account. Okay, this isn't about investments or anything like that. This is just giving us an example. And I'm going to be real conservative. I'm just going to say 3% because I know, you know, some people give high numbers, some people give low numbers. I want to be ultra conservative with this. Okay? Now I happen to be 37 years young today. I'm going to go ahead and round up to age 40. Okay? So you can think about this for yourself regardless of what your age is, because I clearly don't know that answer right now. Now Statistics Canada says that a 40 year old male in Canada is going to be around to somewhere around age 40 or, excuse me, age age 84, 85, somewhere in that range. So I'm just going to use age 85 again to keep things simple. So if we're using a 40 year old male in this example, if you're, if you're a female watching, that's totally fine. Statistics candidates, you're going to be around a little bit longer. So a plus to that. Now I'm going to use 45 years. So what this is saying is, okay, imagine that I took $40,000, hypothetically speaking, if I could leave that $40,000 into some kind of interest bearing account and earn that compounded over the 3% over the next 45 years, every time I make a $40,000 decision, one time decision today, what am I actually leaving on the table if I calculate that? So take a minute to think about this. I'm robbing from future Vern. If I spend $40,000 of my own capital today, that means that I'm not making a $40,000 decision today. I'm actually making closer to 155, $154,000 decision. I'm believing potential of $114,000 of interest growth on the table for future Verne that I could use later on in the future. You know, it's really important to grow our money today. We know that now more than ever, with the hyperinflation that's going on and all the printing of money that the government's doing and the spending that's going on, someone's going to have to pay that bill and it's going to come from retirement accounts it's going to come from your future self and your kids and your unborn grandkids. So we need to get out in front of this problem and do something about it today. And the process of becoming your own banker can help us solve that problem. But I'm taking $114,000, potentially maybe even more, off the table from future Vern and future generations that are going to come after me. So every single time you spend a dollar of your own money, it's a permanent transfer of capital. It's a permanent transfer of wealth and growth potential away from your family forever. You've worked for it, but you'll never get that money back and you can never grow it again. Gosh, Vern, this sounds pretty bleak. I thought you were supposed to be sharing some things with us that could help us solve a problem, help us get what we need in life without getting a loan. Well, thanks for sticking around long enough. Now you're going to get the golden nugget at the end. What I'm going to do with you right now is I'm going to share an example of exactly what me and my family do and all of my teammates and the clients that coach to implement the process of becoming your own banker. This is the process that we follow to solve the problems and get the things that we want in life. Now, if you're familiar with this process at all, if this is really new to you, again, I encourage you to go to the playlist below. There's going to be a description here somewhere either in the post description below where you can access a copy of this book. And I recommend that you get a copy of Nelson's book and also take in some more of the content from the Banker's Vault here, where you can see one of our past pre recorded webinars where we expand about a nine minute webinar where we talk about the process of becoming your own banker. We have all kinds of content that we post on a regular basis. So make sure that you subscribe and click the bell below so that you're going to get notifications letting you know when we post new content so that you don't miss out on any of the value. Okay. The reason why I brought up that webinar in Nelson's book is because it's important for you to have a little bit of context for what we're doing here. What we do is we implement the process called becoming your own banker. And it's very similar to what you're already doing banking today. In fact, it's very similar to, if we look at the saver example. The problem with savings generally is that people are saving money in someone else's bank. What we want to do is we want to save money in our own bank. Now, I'm not talking about building a traditional brick and mortar bank, you know, saving up $10 million, applying for a bank charter, you know, going through all this big rigorous process and maybe 10, 20 years later, possibly you have your own bank. That's not what I'm talking. I'm talking about using a tool called permanent participating dividend paying whole life insurance. Using that tool to implement the process of banking, allowing you to control the process of banking as it relates to your needs and your family's needs. One thing that I'll caveat about, the permanent participating dividend paying whole life policy. Do not collapse the product, the tool, the whole life policy with the process of banking, okay? Nelson taught us that we do not need a specially designed policy to implement the process of becoming your own banker. No, I always joke with people and say you could use a shoebox to implement the process of becoming your own banker. It's just that a shoebox is not a very good place to save money. I stole that from a gentleman by the name of Todd Langford. So shout out to Todd Langford. But you know, because all we're doing is we're capitalizing a system, right? That could be a glass jar, a shoebox, a tax free savings account. And then what we're doing is we're accessing money from that warehouse to go and finance a vehicle in this example, just to keep things simple. So I go and pay money for the vehicle. And now what I'm going to do, because I'm practicing banking, whenever you access money from a bank, you have to pay that money back on a schedule. But if I've piled up money into my own little savings vehicle here, I'm going to access the money, I'm going to pay for the vehicle. And now let's say I borrow 50,000. I'm going to make payments back to my shoebox in this example of maybe 55,000 or 60,000. So I'm going to pay back more than what I took out. I'm going to pay the interest back to the, to the shoebox that I otherwise would have paid to somebody else. That's as simple as it gets. So I'm not talking about a whole life policy at this point. It's just the policy itself is the tool that we use to implement the process. I Joke with my clients. And I say, you know, you could go out and use scissors to cut your lawn, but you'd probably rather have a ride on mower. So saving money into like a savings account or a shoebox is like cutting your lawn with scissors. But where the whole life policy comes in, that's the rocket fuel, that's the ride on mower. That's really going to accelerate the process of becoming your own banker. Okay, now. And help you gain momentum on your money. Now, I told a little bit of a fib at the beginning of this video when I said how to get what you want without getting a loan. Okay? Now, we've been taught that the word loan is really bad. We've been taught that, oh, we don't want to get loans. Well, we need to think differently. Whenever you borrow money from someone else's bank, you now need to make payments back to them. So that's a liability for you. But let's think about, think like a banker for a moment. Everything that you call a liability in your life today, the banker calls an asset. Right? So if I borrow money from a bank, that creates a stream of payments going back to the bank. Money leaving you as a liability, but money being received by them is an asset. So if you're the banker in your life, if you're the bank owner and you're issuing loans to yourself from your own system, and you get to control the repayment schedule, well, who's the one receiving that money and getting to re access and reuse that money? That's you. But I'm going to show you how becoming your own banker. We can not only access the money that we want and pay it back to our own system on our own terms so that we can get back all of the principal and interest that we pay back to that system. More importantly, we're not going to interrupt the momentum that's growing within that policy system. Now, the policy is a legally binding contract that you own and you control, and it's based on guarantees. And the most important thing is it's an insurance policy. So God forbid you pass away, you become an angel. Your family's going to receive a lot more out of the policy system than what you put in. Okay, but let's not focus on that part. That's what the whole market focuses on. There's nothing wrong with that. But what we want to focus on is what I fondly refer to as the living benefits of life insurance. How is it going to benefit you and your family while you're alive? And while you're gone, that's great. That's an added bonus. But how is it going to benefit you while you're alive? So I'm going to expand on some of the ways that it's going to benefit you while you're alive. Okay? Now, I said all that to say this. The death benefit, though, even while you're alive, is really important. Oh, by the way, this says wealth. Because when you become your own banker and you start issuing loans to your own system or from your own system to you and your family, you become a wealth creator, right? Versus being a wealth creator for someone else's bank, you're going to be a wealth creator for you and your family. Now, what happens is, I'm just going to show you, in every policy, you have something called cash value, and we have a death benefit. Now, in this example, let's just say that the death benefit was starting at $100,000. What's going to happen is the cash value is going to start to accumulate every single day on a schedule. So it's going to be rising such that at one point in the future, the total cash value, right, must equal the total death benefit by the time the life insured reaches age 100. So I don't know about you, but I'm aging every single day. Every single day that I get older. My wife and my kids, everybody in my family is life insured. We all have policies every single day that we get older. There's more cash in our policy today than there was yesterday because the life insurance company recognizes, hey, the cash value has to rise to chase that death benefit, it has to equal by age 100. And they work out the mathematics and the calculations and they go, okay, that policy has to rise by $5 today. This one has to rise by $20 today. This one has to Rise by $100 today. It all depends on how large of a death benefit we start with, how old we are. All those kinds of things play a factor. But at the end of the day, the process remains exactly the same. And we structure the policies in a very specific way such that the death benefit keeps on rising because of how we capitalize the policy. As we're capitalizing the policy, well, the death benefit's going to keep on expanding. That means that the guarantee, the contractual guarantee by the insurance company to make sure that the cash value and death benefit match by age 100, that promise, that guarantee keeps expanding. But every single day that goes by the window of time is shrinking. So if I buy $100,000 death benefit today. And I capitalize that policy and I'm just making up a number here, so don't take this as a quote. Okay? But if that policy, death benefit grows by 350, 400, 500,000 bucks in the next 10 years, well, the insurance company can only do one thing. They have to accelerate the daily deposits in the policy system to stay on track to make sure that the cash value and death benefit match by age 100. Okay, so I apologize, I went a little bit heavy on how the product works there, but I wanted you to understand. Why is that cash growing? It's not because the insurance company is really great at investing money. Although they do retire, receive some returns, and that's one stream of income that comes into the insurance company is investment returns. But that's not why the cash value is growing inside the policy. It's not an investment, it's a savings tool. And it grows based on a guarantee. Cash value and death benefit have to match by age 100. This is part of the reason why it's such a great tool for the process of becoming your own banker. I want to give you a visual of exactly how me and my family go about financing things in our own life. Now, I started earlier by saying that we were not going to have to borrow money. We can get what we want without taking a loan. But then I kind of talked about the process of banking and how when you become your own banker, you're issuing loans from your own system. And they're not the taboo, the bad thing that we've been taught. You know, borrowing money is bad. When you're borrowing from your own system and you're the banker, it's a good thing because you're the one who receives all the payments. So technically we are going to actually have to access a loan, but we're going to be accessing that loan from our own policy system. So you can see here, much like the example that I showed above, and pardon my chicken scratch here, all over the place, what we're doing is we start at zero, okay, and we purchase this permanent participating, dividend paying whole life policy. I'm not going to talk about the death benefit or anything like that. What I'm going to talk about is, yeah, we're going to make, and I'm just going to pick a number here, I don't care what your number is, but I'm going to pick $100,000 per year. Let's say that I want to capitalize a policy system at $100,000 per year, okay? Now, you can start a policy as low as $1,000 a year, and it can go all the way up to millions of dollars, okay? But I just like to pick a nice round number because here's what I recognize. The more I capitalize my policy in this example, just saying $100,000. If I capitalize $100,000 a year into that policy, it's going to build a large death benefit, which means the more I put in, the more cash value is going to grow, the more access to cash that I have. So again, don't let that number intimidate you. If your number's $1,000 a year, great. If your number's 500,000 or a million dollars a year, excellent. You have to start where is comfortable and what works for you and your family and your objectives, okay? So that's why, again, it's really, really important for you to be working with a good coach, somebody who's an authorized infinite banking practitioner through the Nelson Nash Institute, Somebody who can show you they can prove to you that they have policies, that they use their system, and that they. That they've actually accomplished objectives, okay? So that they're proficient in the process. This is not about a product. Any life insurance advisor in Canada with a license can sell you a whole life policy, but very few people actually know how to coach you how to implement the process of becoming your own banker. At Ascendant Financial, we hold ourselves out there at the very best or as the very best that do this in the business. But that doesn't mean that you have to go and work with Ascendant Financial, okay? There's plenty of people out there who are authorized through the Nelson Nash Institute that can coach you on this process. Now, what I'm doing is I'm capitalizing my policy. I'm making deposits every single year. So I'm depositing this capital into the process, into the policy as premium. Okay? So it's premium. Now, premium buys death benefit, and death benefit is what creates cash value. Do you see? So the more death benefit I create, the more cash value it's going to generate. So what this green line is representing is this is representing the cash value accumulating within my policy system day after day, year after year. And now what this red line is representing is this is representing my need, my access to capital. Now, don't let that drop. And below the zero line, that doesn't mean anything. Don't make that mean anything, okay? It's just a visual. But what I'm doing, like this could be me getting early on and it could be me getting property tax money as an example because that's got to come from somewhere. I could be using this money to do whatever it is that I need to do. But we said earlier that we're going to be financing a vehicle. So I'm going to capitalize my policy system at whatever level is comfortable, whatever works for you. And what I'm going to do is I can go and I can access something called a policy loan. Oops, let me go ahead and just spell that right out for you. I can access a policy loan from the insurance company. No credit checks, no income verification, no repayment schedule. I own the policy. They're legally bound to lend me up to 90% of my total cash value anytime I ask for it, okay? And then I get to pay back the loan on my own schedule and I get to reuse every single dollar that I pay back to my system. And the reason why they're not asking me for a repayment is because there's a death benefit, remember? So they're going to use my cash value as collateral and they're going to put a lien on my death benefit. So God forbid, if I become an angel, the death benefit will wipe out the loan outstanding and the rest of the death benefit will be paid to my family tax for income tax free. Okay? But let's assume I live a long, healthy life. Fingers crossed. Prayer to the higher power of your choice. Okay? But my cash values are growing. I access my loan, I go and get my car, okay? And now I've accessed the loan. So obviously I don't have access to the money that I borrowed out. But what I'm not doing is I'm not interrupting the growth on the policy. So as I make policy loan repayments, because remember, I want to be a responsible bank banker. So if I'm, if I'm paying back my policy loan here you can see this is representing loan repayments, right? I'm paying back my loan, but my cash values keep going up, okay? So if I'm paying back the loan as the cash values go up, I get to re access all this money in the middle, okay? And if I'm paying back my loan, every single penny gets to be re accessed. This, this gap that I get to access keeps on widening. I want you to imagine for a moment, like I said.

We'Re going to access money at this point. It doesn't matter what year this is, but let's say we borrow out all this money. So here's our policy loan balance line. Okay, we're going to be, you know, we're going to be making payments and paying all this back, but if this has all been borrowed out, okay, we can't access any of this money down here. But what's happening to my growth as this money continues to grow in the policy? I always get to come back and re access the sandwich in the middle. Do you see that? I'm not losing momentum on my money. And now as I make policy loan repayments back to my own system, my balance keeps going down and down and down. And I just keep getting access to more and more cash as time goes on. And if I need to interrupt my repayment schedule for any reason whatsoever, I'm the banker. I'm the bank owner. I get to dictate all of those terms. So that's how you can go about financing the things that you need without having to get a loan. Or at least not the traditional way. Jumping through all the hoops and making loan repayments or accessing your own cash and giving up the growth potential on that money. Hope you found this video really valuable. And again, don't forget to click the subscribe button. Hit the bell so that you get notifications of new content coming out and check out the playlist beside me here. Okay.