How to Grow Your Capital as a Farmer/Rancher

You've been doing all the work and someone else is getting all the money. And what's the problem with that? Well, the problem is how you bank, how you go about financing your operations. You're already familiar with the process of banking. You're just not controlling it. Most people know next to nothing about the process of banking and its importance to their lives and their well being. So when we talk about growing capital, this is what the opportunity that you have and don't start where you can. This couple started with 10,000, but they have plans to make it a life journey, make a difference for their farm. So again, just as a reminder, the difference between you getting stressed and staying relaxed financially is who's in control of the banking function as it relates to your needs on your farm or ranch.

Welcome. My name is Jian, Jian Fang. I am one of the advisors here at Ascendant Financial. Here at Ascendant Financial, we coach Canadian families and Canadian business owners, including Canadian farmers and renters, on this process called becoming your own banker. You are here for the webinar. You've taught how to grow crop. Let's show you how to grow capital. So welcome and Dan, the stage is all yours.

Well, thanks, Jing Jin. That was an awful kind, kind of introduction and I appreciate just having people like Jinjan here to support me. This is all about you as a farmer or rancher. And one of the things I wanted to start off with is just talking about, you know, this is the end of June. You know, I always joke with people like in Canada here, we really only get three months of bad sledding. And if you're a farmer or a rancher now, this is kind of the time of the year where you have a lot of things on the go like it never ends. Like, I just know if you're a cash cropper, you go from, you know, getting that seed in the ground. The next thing you know, you know, you're spraying and it just on and on it goes. And if you're raising livestock, it just doesn't stop. You're doing all kinds of activities this time of the year. So congratulations on being here. And you know, we're going to start talking about how to grow capital. Now. That's a different idea than you maybe heard before. So that's why I'm excited to bring it to you. And with that, I'm going to get started how to grow capital. You know, as a farmer or rancher, you already know how to grow crops. You're very good at raising livestock, producing milk. If you happen to be a dairy farmer. But tonight we're going to talk about how to grow capital. So in the next 90 minutes or less, you're going to gain clarity on the financial problem that you as a farmer or rancher face when it comes to financing your operations. And then after that, we're going to get into the solution to that problem. And once you understand this opportunity, here's what I'm hoping for you, that you will create a peaceful, stress free financial life. So when you think about that, what's the opposite of stress free? Well, I found this little picture because, hey, I've been there. I've had those nights where I'm laying there eyes wide open and you know you should be sleeping, but you got a lot of things going on in your mind and that's just not a fun place to be. So let's try to help you get clarity around how you could change things financially for your farm or ranch. But we're going to talk about a few things and predominantly how to grow capital. And the other thing that I really want to share with you today is we're going to show you how to use this strategy as a way of passing on your farmer ranch to the next generation. Because at some point in life, and I've talked to a multitude of farmers and ranchers and I've asked them, so what's one of those things that you find as a pain point? And said, well, how do we pass our operation on to the next generation without them having to buy it again? So that's something that out of this presentation you're going to get a little clarity about how you could do that. So before that and before we get into that, all the parts that we're going to go through tonight, I wanted to talk about who are Nelson Nas. So if you don't know about the infinite banking concept or becoming your own bank, I'm going to tell you that it was based and founded by R. Nelson Nash. And he's the one that wrote this book called becoming your own banker. So I thought I'd take a few minutes and just talk about Nelson. One of the things that I really appreciated about Nelson when I heard him speak was that he always made this comment, everything begins with the way we think.

And you know, as I read into his book and it's on page 14 of his book, he talks about the infinite banking concept. And he says, an exercise in imagination, reason, logic and prophecy. And so, you know, one of the things that tonight I thought I'd, I would just do is I talk about the first time I met Nelson. So this is back in 2014, and I was really blessed to be at an event where Nelson was speaking live. And he went through his whole presentation and really the book is his presentation in a book form. So as he went through that, I sat there and I got thinking about, you know, and he kept mentioning it all begins with the way you think. And I started reflecting on my life and relating it to what he said. And one of the things that I recognized, and we're going to talk more about this later on the presentation is. But Nelson and I both went through a very similar event in our life. So I was like two years into my farming career and he was in business also, where we were both borrowing money and we had money borrowed, and then all of a sudden interest rates went to 21 and a half percent. And that put a lot of pressure on both of us. For myself, that's, oh, 21 and a half percent prime. And I was not prime. And my operating loan was above 21 and a half percent. It was close to 23%. So what did that force me to do? Well, it forced me to start working off the farm just to pay my bills. And, you know, when I went through that experience in life, I came up with this idea that this would be the best thing I could do, which was to become debt free. And I thought, you know, if there's the goal I'm going to set for myself, I'm going to get to a point where I don't owe money to anyone else. And yet when I sat there and I listened to Nelson, I realized that he come up with a much better way than I did. And if I'd adopted his process, I'd have still got to a point where, you know, I didn't owe money to the commercial banks, but I'd have been in a much better position. And we're going to talk about that because you see, when I got to a point where I was debt free, I'd sit back and I looked at how much money had flowed through my hands and how little of it I still had. And for Nelson, that all changed once he discovered the concept that we're going to talk about tonight. He kept the wealth in his control. And that's what we're going to talk about. So that's what I wanted to share with you real quick today with just a little background story about the first time I met Nelson. And you know how that went. And really, when you think about how everything begins with the way you think. I really found that to be the case as I heard and unlearned about this concept. So everything begins with the way you think back in 2019, I think it was February 2019 was the last time I got to spend any time with Nelson. And you know, this was probably what, six weeks before Nelson, you know, for the good Lord took Nelson home. And I was really fortunate to be able to spend a little time with him. We premiered the documentary film on this man's life that night. And you know, if you haven't seen that film, and I really encourage you at some point to take an hour and just listen to that documentary. Really gives you insight as to who this man is. Because I can tell you, when I heard him and seen him and heard him speak, it changed me because he was the reason why I decided I want to go on and teach this to other people. So I was pretty blessed to spend a little time and I thought tonight I'm going to give you a short moment with Nelson just so you get a sense of who he is and how he thought. So I'm going to show a little video clip of Nelson.

Deb, you guys are out there teaching farmers today how to grow crops with scientific precision. But every farmer today is highly capitalized. Nowhere are you guys teaching people how to grow their own capital. Let's contrast that with you teaching people how to grow cattle. Cattle consume feed cow chow. If I were a farmer growing cattle and I bought my couch out off the market, you guys would laugh me out of the county. You need to be growing your own cow chow. Well, don't you need to be growing your own capital?

And see, that's not taking place. That's not thought of.

All right, so you know, that's something that, you know, farmers and ranchers are taught. And he talked about cow chow. And I've never heard, you know, that cattle feed called that before. But when you think about it, the majority of cow calf producers raise their own feed. Not all of them, but the majority of them do. And that's what Nelson was talking about. We've been taught to do that, but we really haven't been taught to grow capital. So that's what we're going to get into tonight is just how to grow capital. And this is the book I mentioned earlier. That's a self published book. And when you think about the fact that it's a self published book and it sold over 500,000 copies, that should tell you something about it. Obviously, you know, why would there be that many volumes of that book sold. And really it's a simple answer and it's simply because it works. Now I know it works because I use it in my life and I know lots of other people that use it in their life. So we definitely can speak to the facts that it works because we get to experience that. And that's one thing that I'd encourage you to do, really understand this concept and then figure out, hey, can I make this work for me? So with that I just wanted to go and, and talk about how the infinite bank concept got started. So I'll give you a bit of a heads up already because I talked about, you know, when I first got to see Nelson and this is going to be somewhat related to that. So how the infinite banking concept got started was way back when we were talking the early 80s. So 1980 inflation skyrocketed. Now doesn't that feel like deja vu? Like today what do we hear in the news, how inflation's going up and up and everybody wonders where it's going to stop? Well, that's what was happening in the early 80s. And I remember that because like I said, I was already in agriculture at that point in time and I was dealing with high inflation and it impacted every way of life back in those days. So that's what was happening. And the second thing was interest rates went to 21.5%. And what I want you to understand about Nelson, he had over $500,000 in debt, outstanding debt at this point, which would a lot of debt back in 1981. And you see Nelson, he was into real estate investing. He'd done really well in a number of deals. In fact, you know, some of his earlier stuff, he'd done so well on it, he took himself and his wife Mary and they went on a month long vacation to Europe just on the profits he'd done from his real estate deals. So here he was, he was investing in real estate. And Nelson used to always say to us, leverage is a great thing until the lever goes the other way. He had this huge debt and he was really wondering, you know, what can I do to get myself out of this mess? You see early on in life, and don't ask me why, I would love to, you know, have asked Nelson this question, but I didn't, didn't even know this until after he passed. This man bought dividend paying whole life insurance when he was in his teen years. As a teenager he was buying, he was putting his parents as the beneficiaries. Like I Don't know any other teenager. I haven't met one that was buying whole life insurance. But he did, and I don't know why. For the death protection, it wasn't for this purpose. But why somebody would be motivated to do that at that age, I do not know. In fact, he had a couple of policies before he was done his teen years. And then the other thing I've learned about him is before he married his wife Mary, he actually took out a whole life insurance policy on her life before they were even married. So for some reason, Nelson was into buying whole life insurance. And in fact, his brother was a life insurance agent. And Nelson ended up buying a bigger. Because those policies that I started talking about, they were like $13, they were small policies. Back in those days, they would have bought $10,000 worth of death benefit. But as he got older and his brother sold him what today would be considered to be a pretty good policy, it was costing him $388 a year for that policy. And he had that in place for a lot of years. And you know, just for the death protection, that's what his whole focus was. And so as he was dealing with this problem and Nelson, if you read the book, he says he spent months, you know, down on his knees between 3 or 4, 3 o' clock and 4 o' clock in the morning, you know, just asking, you know, dear Lord, how do I get myself out of this mess? And he writes in his book, it just like hit him like a bat between the eyes. And, you know, he kind of got this message, you are standing in the midst of everything it takes to get out. But. But you don't see it because you're looking at things like everybody else. So through that period of time, Nelson discovered that he had assets that he could use to get himself out of trouble with all the banks and all that debt he could borrow from those life insurance policies he had at a lot lower interest rate than he was having to pay at the bank's end. And he started to do that, he started to use those assets. And the only thing he said is that he realized the limitation was he hadn't put enough capital, enough premium into his policies or he could have done more. So he started to change that. It took Nelson 13 years to get out of the banks and to deal with those problems that he had with all the money that he owed. He made it a focus in his life. He said, I had to go through some honest direction about my spending and look for ways to be able to capitalize My own system of policies, more so I could get out of owing money to the bank. And that's what he did. It took him 13 years. And this was what he said was a real peaceful, stressful, free way of life. When you get the banks out of your life and you can imagine going through the journey he went through, that would feel like a real relief. So next we're going to talk about the problem. So everything starts with a problem, as a rule. And we're going to talk about the problem that farmers and ranchers face. And there's lots of you guys, you know, that you're a farmer, rancher, you already know there's lots of challenges that you have. So the one that I wanted to spend a bit of time talking about tonight, it's a huge one I believe, for farmers and ranchers is simply uncertainty. Now, farming and ranching comes with all kinds of uncertainty, things that you can't control. So we're just going to talk about a few of them. And I know you could list a lot more than what I'm going to have here. First off, it's the weather. I don't know about you, but that one is huge. Now, I don't know which part of Canada you're in, but here in the west, we've gone through, you know, last year there was multiple places where we didn't get enough rain and things were too dry. And even that spring, like, we just didn't get a lot of moisture until recently. A lot of places that hadn't had moisture started to get rain. It's making a real difference. Like, I just drive around the countryside where I live, and I live in Lloyd minster, Alberta, Saskatchewan. So it's kind of a real farming, ranching type of community. But I have contacts all across the west, and I know that a good portion, if not all of it has now got some rain. In fact, this spring, cow calf operators, a lot of them I knew, some that were selling off, calling a lot of their herd because they had no feed and the grass didn't look like it was going to grow. And now, you know, guys that, you know, bought cow calf pears earlier this spring are just saying, well, you know, that value, what I paid and what I could get for him now has changed drastically just because of the rain and the hope that comes with the fact that the grass is growing. We're going to have pasture, we're going to be able to have feed for those cattle. Talking to a couple of ranchers and they said yearling heifers are bringing over $2 a pound right now at the market. That's a phenomenal change because people are starting to think about replacing some of those calls in the herd. So I digress. But that's how big of an impact weather can have on your operation. Whether you're a cash cropper, whether you're a cow calf operator, weather becomes a huge factor and it's totally out of your control. Now there's also the markets. And I don't need to tell you about how markets can change. We've seen it. We've seen the influence of, you know, all kinds of different things over the last number of years. You know, just a, a mad cow disease scare and all of a sudden countries aren't taking our produce. And it just like you can change the value of your produce just like that. You know, foreign governments have more control over things than we'd ever like to know. So markets can be a huge uncertainty if you're a farmer and rancher. And then when it comes to the cost, just the cost that, you know, keeps on going. We talked about inflation, think about how much more of the fuel is costing this year compared to last year. And then, you know, cost of land, it's, it just keeps on going up. And equipment, I asked a farmer, I said, so, you know, how do you balance off, you know, keeping up with technology and the cost of that versus, you know, keeping your farm.

Viable? He goes, well, it's a balancing act because you can't afford to have all the latest and greatest technology, but you can't afford to get too far behind. So I know there's lots of pressure on farmers and ranchers when it comes to, you know, the cost of the inputs and all those other things that you deal with all the time. So today.

The problem that we want to address, because I can't change all a lot of those things for you, I really can't. I can't change what the weather is going to do. I can't change what the market impacts are going to be for you. Some of those and those costs, those are outside of my control. So we're going to look at what we could do differently. So the problem we're going to address today is simply.

The way you've been financing your farmer ranch and it really hasn't helped you grow capital. And so we want to change that just to give you an advantage that you didn't have before. Now. This is kind of an interesting saying and you know, and Will Rogers come out with it years ago and he said, you know, the problem in North America ain't so much what people don't know. The problem is what people think they know. That just ain't so. Now with that, I decided I would. I would read a bit out of the book, becoming your own banker. I'm going to read Starting on page 34, this is where Nelson wrote about the Arrival Syndrome. And really, when you think about that quote from Will Rogers, it has a lot to do with Arrival syndrome, and you'll see why. So the Arrival Syndrome, when this thing infects us, we stop growing, we stop learning, we rot, we turn off or tune out the ability to receive inspiration because we already know all there is to know. That's kind of a real risk for all of us is that we get to a point where we hear something, you know, we don't take the time to understand what it was because we already think we know the answer. So we always have to be careful that we don't do that. Now, I don't know if you've ever heard of Ed Deming or not or Deming's Way, but Ed Deming was a business consultant. And we're going to talk about Ed Deming because Nelson's got it in his book on page 34, he said, Remember Ed Deming? And Ed lived from 1900 to 1993. So he was 93 years old when he passed. He was a person who taught the Japanese the idea of quality. Business schools all over the country fell in love with his teaching after the Japanese showed the world the results. See, shortly after World War II, you know, if you think about what, you know, what the Japanese were going through after World War II, Ed started trying to get the attention of American businesses. And with his ideas that he had to teach him that, almost without exception, Ed ran into the response, but we're already doing that. No, they were not doing that. They were. They were only taking a superficial look at what Ed was saying and jumping to the conclusion that they already understood all the ramification of Ed's concept. Ed turned to Japan with an economy that was non existent. They were flat on their back. And he found a culture there that already knew discipline and was willing to listen and to do what he said, while the rest is history. And American manufacturers paid the price for their arrogance. When Ed came back to America much later, he was accepted as a genius. And many business schools now sing the praises of Ed Deming. So when I was in my previous career, I studied the Deming Way. And in fact, one of the books that I spent a lot of time reading was called the Toyota Way. And so Toyota was one of those early adopters of Ed Demings concept. And you know, through, through that we all have, you know, equipment that's actually better designed than it was before. Our vehicles have all gotten better because of what the Japanese learned and that we after time adopted some of those principles that Ed taught. But really that's about helping you understand that quite often we limit ourselves because of the mindset that we already know. And just be careful when you get to that one. And that's just what Will was trying to express here, that sometimes that becomes a problem for us. So I just wanted to share that with you tonight. And next it's kind of time to address the efficiency, you know, when you think of how you finance your farm. And so that's what we're going to talk about and we're going to look at. So what's wrong with the way you've been financing your operations? Now you think about all the things you've been doing from an efficiency perspective. You're already doing a lot of things very efficient. But are you financing your operations efficiently? And one question I'd like you to ask is like you've been doing all the work and someone else is getting all the money. And what's the problem with that? Well, the problem is how you bank, how you go about financing your operations. You're already familiar with the process of banking, you're just not controlling it. Most people know next to nothing about the process of banking and its importance to their lives and their well being. So here's something I wanted to share with you. Banking is the most important business in the world. Now I know what you do is vital, critical for the world, to feed the world. It's kind of critical. But without banking, everything as we know it would come to an end. And money has to move without it, it would change everything for us. It really would be hard to describe what the world would be like if money stopped moving and banking ended. Remember, there's only one pool of money in the world. So if somebody takes money out of the TD bank and they pay a bill and the merchant deposits that into rbc. There's just really one pool and it's under the control of many different institutions. But there's really only one pool of money in the world. And you think about that. You can travel from our country to any other country in the world. And I've done it. I walk up to the ATM machine and I can actually Take money out of my bank account back here in Canada, in a foreign country, through the atm, and think about there's really only one pool of money in the world. The banking system pumps the money to where it's needed and at some point it flows back to your hands and mine. Think about how much money has flown through your farmer ranch. How financially efficient is your farmer ranch today is the question I have. Because here's what you can ask yourself. How much of the money that flows to your hands do you keep? You know, when I thought about the difference between the weight, you know, planned on getting out of debt and I did get out of debt in life, and the difference between that and what Nelson taught was using his process, this infinite banking concept. You keep the money within your control, you don't send it all away to others. And when I ended up paying cash for things and I got to that state in my life, yeah, I was successful in paying off all my debts, but everybody else had all my money. And when you pay cash for things, that's what happens. Someone else gets your money and you don't have it anymore. So how much of that money that flows through your hands you keep is always a great question. Now the question is, who control the banking function in your life? Well, for the majority of us, it's the banks. And how does that make you feel would be a great question. Well, I can tell you you can change that. And here's a, a truth I want you to understand. You finance everything you buy. That's right, everything you buy, you finance. You either pay interest to someone else or you give up the interest you could have otherwise earned. And really, once you get to know that, there are no exceptions, there's no way around that unless you practice this concept. Because here's why. We're going to show the difference between the person that borrows money and the person that uses their own money in this next slide. So what you can see here is two types of people. The top one is the debtor. This is someone who borrows to do whatever they're going to do. They see the interest because it's part of their payment. Now, we've all been there, you know, we've been there where we take a loan and we, we know we're going to have to pay that loan back. Now as we do, we realize interest is part of that payment. So we're paying someone else to use their pile of capital, their pile of money. And we understand that and it makes sense to us. We go, okay, that's reasonable. I'm borrowing somebody else's money. I should be paying for it. Then there's a savior now, this saver. And this is the way I was buying a lot of my stuff when I got to a later stage in life and I didn't want to borrow money anymore. I was saving up. And I would save up my money over time until I had enough money to buy whatever I wanted to buy. Say it was a new truck and I bought a multitude of those. We're just paying cash. And then as soon as I paid cash for that truck, what happened? Well, my savings all went away and I would start to save again. I would start saving up for the next thing I was going to buy. Now what's the problem with that? Well, here's what I want you to understand. When you practice the infinite banking concept, here's what you can do. You're going to look more like this, the saver. You're going to be saving money. And when you get to here and you're going to, your need for something is there and you're going to have needs for things in life. You're not going to interrupt this growth. You're going to keep this money growing and you're going to have access to a policy loan that's going to use your value that you've built up here as collateral for that policy loan. So you're not going to cut the growth off your money. You're going to keep it growing. And that if there's one thing I can teach you tonight, that's the key element when it comes to this process is you don't kill the growth of your money. It grows uninterrupted for years and years. And so going back to this slide, the things that I wanted you to understand was, you know, for right now, the typical, you know, person, farmer, rancher person in Canada either uses one of these two methods and it's a constant transfer of money away from you. It's always flowing away from you. It's either going towards wherever you're borrowed or you give up the use of that money. That money will never grow again after you spend cash. So both are constant transfer of money away from you. Now, one of the things that Nelson said is if you understand the problem, the solution will become clear and you'll know exactly what to do. So going back to when I was trying to get myself figured out and how to get things in a better place for me financially, I didn't understand the problem. So I went at it from the Wrong way. And today we're going to teach you the opportunities of how you can apply a solution to the problem. We want to just take and do a bit of a journey, get you to think about over the course of your lifetime on your farm or ranch. Think of all the money that's left you through your operations, through different things that you need, whether it's equipment, cattle, it's land, it's feed, it's, you know, repairs, it's insurance. The list can go on and on. And I know you could add a lot more to this list than what, you know, I'm sharing with you right now. But there's a lot of things that have, you know, you have the need for capital for, for money, and you can just think of all those. And so here's the, you know, the piece that I wanted to ask you. If you think about all the money you've earned and spent up to this point in your life as a farmer and rancher and added it all up, it would be a lot of money. But here's the question. Could you write me a check for that amount right now? Well, I couldn't. I couldn't do it in my life, and I suspect you couldn't either.

Now, Jason came up with this comment and I really like it. He really says, you know, have the banking process work for you rather than against you. And that's what this solution allows you to do. It allows you to have the banking process work for you and not against you. So the whole idea is to change the flow and keep the money in your banking system versus someone else's. So you ask, you know, well, how can you do that? Well, it's pretty straightforward. This concept allows you to do that. And it's based on this book. And that's what we're here to do. We teach this to people all the time. And why? Because it works. So why would you do that? Well, it's all about total and absolute control. That's what you can end up when it comes to financial things in your life. As you apply this concept to it, you can end up with total and absolute control. So if you think back to Nelson when he got out of the banks after 13 years, he ended up with total and absolute control from a financial perspective on the things in the rest of his life. He never, after that, had to use the bank for a loan. He was able to used his own system to do that. He never had to go and sit in front of a banker again and work on the terms of a loan. He had that kind of control. And that's what you can get over time with this process. And we're going to show you the difference that will make. And before we do that, I just wanted to give you an idea of what is the infinite banking concept. Just to help you understand that it's privatized banking at you and me level to reclaim the banking function in your life using participating dividend whole life insurance as the platform. Now that particular platform been in Canada since 1847. So you think about that. That's longer than any of us have been alive. You know, it's to my knowledge it's the oldest financial product I know of in Canada and it's still in a work back then and it still works today. What else has that kind of a track record now participating, what does that mean? Well, you become a part owner of the life company and you participate in the profits generated from every line of business. Now that's especially true if you're working with a mutual life company. Now there's a difference. In Canada you can, there's some great stock companies that have great products for this process, but some of their profits are shared with the shareholders of, you know, that are shareholders in their company. But there's mutual companies in Canada too, where all of the profits get shared with the participating dividend policy owners. And you know, that is a great way to become part of a business that pays dividends every year.

So dividend paying.

Every year the life company declares a dividend. So once they declare it, it's contractually guaranteed to be paid to the participating policy owner. And it can never be repossessed or lose value.

As the life insured. You're insured for your whole life up to age 100. The total cash value of the policy must equal the death benefit by age 100. So every day that you age, that cash value rises and the policy cannot lose value. That's a key contractual guarantee that's there and it's so powerful when you think about it. Every day your cash value has to grow. Now we don't have many financial guarantees in life anymore. However, dividend paying whole life can provide peace of mind and unmatched financial security because.

Like I said, cash values, they begin accumulating immediately and they're contractually guaranteed to grow every day. And values can't go down. There are tax advantages both personally and corporately, and it provides a growing death benefit which is paid to your name beneficiaries income tax free. So really, what's tonight about? It's about, you know, how you could grow your own capital and what would that look like? But I brought this slide in just to help you understand what that could look like. So this is just this green line here shows cash value growth. Now let's just say this is, it starts at zero and it starts to grow right away. And this is over time. And your premiums would be something like this. They're going to come across and they're going to be a straight line. They can't go up. I can't draw that straight of a line. They can't go up, but they can go down. We're just going to show you paying premium for this period of time. And so that's the way it works. As you start to pay premiums at first your cash value is going to be less than what you're putting in. But it doesn't take long because this cash value continues to grow. And it isn't long before your values, your cash values are greater than, than the premiums you put into the policy. And over time that difference gets to be wider and wider. And this is where you know you're starting to grow capital and that difference just widens out. The difference between these two lines gets wider and wider as time goes by and you're growing capital. So that's the opportunity you have. Sure. It takes desire to do this. It takes a desire to start to capitalize a system. You can understand that when I do that, it's going to make a difference over time. It's not going to be an overnight sensation like Nelson says in his book, this is not a get rich quick scheme. It's something if you do it over your lifetime, it's the most profitable thing that you can do. So just going to race this stuff on the slide. We're going to move on. So I just wanted you to understand high level how that works. Now the next question is, and you may be asking, hey, can you connect me with the right person on your team to look at my financial situation and show me, hey how I could become your own banker? Well, the answer to that is a simple yes. We do have great team here to help people on this journey and we have a call just that we use to help people get introduced to it, find out what they need to know about it. So I'm just going to encourage you to click the link you would have got, links that you would have received to help you with this journey or text the word schedule to 780-809-4599 and reserve a time that works best for you to talk about this because hey, all it's going to cost you is time just to find out if this is something that can make a difference for you on your farm or ranch. I know you should know that deep down you're capable of doing this, becoming your own banker. And just so you know, we're going to do a follow up for you. We're going to stay in touch via email. You can unsubscribe at any time and you're going to receive an invite to schedule a time. If you don't take that opportunity tonight, you're still going to get that opportunity. And if we don't hear from you, you know, one of us is just going to give you a call, just you know, to say, hey, is there a time you'd like to speak about this? And hey, if you prefer not to talk or meet, that's okay. Just simply let us know that. And as long as you leave happy, that's okay. Because we're here to help people understand how they can make a difference. This thing, this concept can make a difference in their life. And that's what we want to share with people now. You know, if you want to learn how this process can be advantage for you and your family and your farm or your ranching operations again, just text the word schedule to 780-809-4599 and reserve a time that works for you. All right. I just wanted to go and talk about financing and I wanted to talk about how most of us as farmers or ranchers today are, are financing the business operations. And you know, I think you'd agree it's either through bank financing, leasing through cash, and it doesn't matter which one of the methods you use.

Irrespective of interest rates on those loans, who's getting all the money? Well, here's what it can tell you. It ain't you, it's flowing towards someone else. And I always tell people is like, yeah, it works. And a lot of us have proven that it works when we borrow from other people and we still get our objectives done, but you're also helping someone else. I always say with stockholders in the bank, you're paying for their retirement and really when you should be focused on your retirement. So question for you, how does that make you feel?

That's a great question to always think about. Is there a way to do it differently? Because this is how it can make people feel. They just go a little bit frustrated with the fact that they don't have control. So there's a better way. And that's what we're going to talk about. And yes, it's going to involve this book written by R. Nelson Ash and it's using the infinite banking concept. So now I wanted to go into a case study and how to grow capital and pass your farm or ranch down. And before we get into that, I just wanted to know just a word of caution. So there's going to be some numbers that we go through and numbers are just numbers. Just, you know, don't get too caught up in numbers because everybody's situation is different. But just to help you understand, I wanted to walk through an example for you just to help you understand how you could use this concept to help you grow capital and to support the passing down of your farm to the next generation. So with that, let's go and meet Cal and Kalyn. So I've been pretty blessed to work with some really young mixed farmers so far in my career and you know, it's always just inspiration to me to see how, you know, those people want to make a difference. That couple wants to make a difference in the long term for their farm. That's kind of the, you know, the premise that I built this case study off is it's a young couple and they are both 35 years of age, they own a mixed farm and so far they've been blessed with a two year old son. But the reality of it is they don't have a lot of extra money. Now one of the things that Nelson taught, and it's factual, he said you don't have to have a lot of money to get into the banking business. You don't have to be rich to get into the banking business. So that's part of what I wanted you to understand tonight through this example. Yes, it takes desire. That's what this couple had. They had desire to change something for the better. So you know, they'd been studying the infinite banking concept and what they did is they took a long range view of what they wanted to change.

And they wanted to start now with what they could.

And you know, one of the things in page 65 and becoming your own banker Nelson's writing about, when somebody asked what you know now you decided this is something you want to do. What's it take to get started? And he said the word that comes to mind. If you have a copy of the book, go to page 65. The word that comes to mind is desire. So this couple had the desire to make a difference and they wanted to start where they could. So they decided that they were going to start with a 10,000 a year policy. And then what they hoped and planned, because they haven't got to this milestone yet, is they wanted to expand their system in 10 years.

And next they decided to start a policy on their son for $300 a month. And what they were going to use for that was the child tax benefit. Now I think from what I can remember, that was like a $400 a month they were taken in for that. They were going to use 300 to start the policy on their son. So that was what they decided to do.

Now we're going to just touch on their objectives. So what were the objectives that this young couple had? Well, they wanted to have full control and a growing pool of capital. They wanted to be able to access capital without interrupting the growth of their own capital. And they wanted to be able to pass their farm on to the next generation. And they wanted to also include a transfer of financial knowledge. They wanted this concept. They wanted to be able to teach it to their kids and so they could use it and go on in the future and make a bigger and bigger difference to their farming operation.

So here's what they did. They started a dividend paying whole life insurance policy on Cal.

And they started a term insurance policy on Kaylin. Now I'm going to tell you something. So when we met and we talked, it's pretty important that both of them have protection on their life. So they couldn't, you know, it didn't make sense for them to put whole life on both of them. They wanted to do whole life on one and then we still put protection on Kaylin. And there's a few reasons for that. Because once that policy is in place and they had that goal of 10 years from now, they wanted to expand their system. They were going to use Kaelin for that expansion. And when you put a term whole life insurance or term policy in place with the right life company, you can convert that to whole life without underwriting. So it adds that guaranteed insurability. God forbid anything happens to Kaelin's health over the next 10 years, they could still do that. So it had a few pluses. And that's one of the reasons why we did that. And next they started a dividend paying whole life insurance policy on their son.

Now they will be using the cash value in Cal's policy immediately. You see, their first objective was to replace one of the bulls for the calc operation. They estimated that was going to cost them $4,000. So that was what they were going to do with this right away after they started this practice and banking using this process, they also made a determination that their goal was to fund their policies to the age of 65. Now, here's one something I'm going to tell you. They could stop sooner if they wanted, but that was their goal. And, you know, once they understood the difference that could make, they said, okay, well, we want to be able to fund our policies all the way through to age 65. Now, you know, if you want to learn about this concept, and there'll be lots of questions that come to mind. So one thing you know, and I can tell you now is they didn't have to fund it that long, but that was a choice they made. So now we're going to talk about outcomes. So how did it go? Well, as soon as they settled Cal's policy, they had access to $5,500, and they used a policy loan to pay for the bull they needed. Now, you might be thinking, hey, you know, they could have just taken $4,000 of value out of their policy. And yes, that's true. They could have taken cash value right out of their policy, and they wouldn't have to worry about a loan, and they wouldn't have to worry about paying interest. But one thing you'll understand when you start to practice this concept is that you don't want to interrupt the growth. You want to leave your money in there. You want to leave it in there growing, and you want to use it as leverage for a policy loan. And that's what they did. They used their capital, the amount cash value they had built up in that policy as collateral for a policy loan to pay for that bull. So they got the bull, and, you know, that was just one of the ways they used that policy immediately to help them on their business. Next.

By day one, they were beginning to grow capital. That's right. It contractually specifies it's going to grow in value every day. So by day one, they were beginning to grow capital on Cal's policy.

Now, by the year 30th, the 30th year, so that's when they'd be 65, this policy, the cash value is $585,500. And the premiums that they would have put in all the way up to age 65 would have been $300,000. So when you think about that, their capital has grown by $285,000 with this one policy. Now, next, this is what their plans are they're not 10 years into this process, but this is what they have in mind. They plan on converting Kalyn's term rider into a whole life insurance policy with an annual premium of $15,000. And they're only going to capitalize this one for 20 years. So when you think about that 20 years times 15, it's going to be that same $300,000 of premium that they put into this policy.

And by day one, this policy again grows capital. And 30 years out. Remember the first 10 years, they didn't even have this policy growing. The cash value of this policy is $445,000, and the premiums equal $300,000. So this one, now it's growing $145,000 with this second policy. Now, here's a few things I want you to understand. They'll be banking with these policies. They're not just going to let that equity sit there. They're going to be using it. Just like right away they took that policy loan to buy that bull. They're following the infinite banking concept. They are believers in paying themselves back. They're going to be paying those policy loans back on their terms. Whether they take, you know, two years to pay that off or three years to pay that off, they're going to make that decision. But they plan on paying off their policy loans, and they're going to make the calls as to, you know, when do I make that payment? You know, if they wait till the fall to make the payment on that loan, because that's when they sell their calves off, that's their call. Or if they want to wait till the march to pay it off, that's their call. They're going to have that control. But they had to made a decision that they're going to practice what Nelson taught. Pay yourself back, pay your policy loans back. And that's the way banking works. Like you can imagine having a, you know, taking a loan out, not paying it back, that really isn't banking. That's leverage. And we teach people just the concept that Nelson ingrained in his process, which was have a plan to pay yourself back. Now, let's take a look at the numbers. Now, the numbers are numbers, but I wanted to show you a few numbers just to help you understand how this worked for this young couple. And there's one thing I want to remind you about as we go through this. You know, they started out with a $10,000 annual premium. That's a lot of money in cases, especially when you're trying to make ends Meet. But they made a call that they were going to do that and they found a way over these, you know, the years they've been doing it. Now they found a way to do that because they believe in this. So let's take a overview. So we're going to look at, you know, a few things on here and I really want you to help you understand just a few key things. Okay. So as you can see, you know, in 10 years, this is the cumulative outlay that they put in to their system. Now their cash value is greater, it's 150 and they put 137. And we haven't even talked about the death benefit because you know, God forbid that anything happens to any one of them. You know, this is their combined death benefits. But it makes a real difference to that unit, that family if something tragic happened where they still had an influx of capital and you know, help them mourn the loss of whoever that person was. So I didn't, I haven't even touched on that. That just, that's icing on the cake that comes with this process. It's really a great asset that you know, that you get to have. As soon as you start to capitalize a dividend paying whole life insurance policy, you get estate value. So 15 years out, you can see how the cash value keeps on growing and it's growing greater all the time. So we go out to the 20th year mark. Well, they put $425,000 and they've been able to use. It's not like they put this money in jail, they've been able to use this, but their cash value has now grown over $125,000 more than what they put in. And they've been all along here, they're using this capital. They're not just sitting, letting that capital sit there, they're using it, they're using it for things on the farm. Like when they get to this stage here, they'll be able to cover their whole operating loan each year based on what they have for an operating loan. They'd be able to just use their own banking system for their operating loan on their farm. So they got all kinds of opportunities. But you look out and you think about what's this look like when you get out further and you can see it's a nice growth.

Of capital and capital money that wasn't there before. And it just gives them an opportunity to change things in the long term. So that's just a small example of what would happen. And capital growth over 30 years would be $488,000 in this policy. And yeah, so when we talk about growing capital, this is what the opportunity that you have and you'll start where you can. This couple started with a 10,000, but they have plans to make it a life journey to make a difference for their farm. So.

What else do they have with this plan? Well, I did some looking. If they capitalize their system the way they're planning on, you know, by the time they get to be 65, if they wanted to, they could start pulling money out and not paying it back and they could pull out over $700,000 and it would still still have enough there in value to support the transfer of the farm to the next generation. And that's kind of another piece. And upon their death, you know, that's what they get to do by passing on tax free capital. It's kind of a sad reality, but it's a reality. We're all going to die. And at some point both Cal and Kalin are going to leave this earth. And just to give you an idea of what that could look like, I just wanted to look at Cal and they'd say.

We knocked Cal off at age 86. Now it's just slightly more than the average age of a male in Canada when he passes away. But we just wanted to demonstrate how that could be a benefit to the farm. Because that's not a good thing. Right? Somebody passes on, that's just life. But sad event, you mourn the loss, how is that going to help the farm? Well, his death benefit. At that point, I just wanted to show this couple that we could use that to fund a policy on their son who would now be 53 years old. Now they may have other children, like they have plans to have other children, but right now they just have one. So we built this case study around just one so he would be the oldest one. And hey, if he continued on farming, and they don't know that, but hey, we're just thinking long range. But if he stayed on the farm and continued to farm, they could be using Cal's death benefit to fund a policy on their 53 year old son. So when you do that, what does that look like? Well, here's a quick look at what's all factored into this. I factored out the 700,000 that kept Cal and Caitlin were going to use for their retirement. So that isn't even included here. But Cal's policy could easily fund this policy on their son. And what does that do? Well, you can just see it builds more and more capital over time. This is capital that they could use. They could have got that death benefit right off the bump and they could have used it to pay something, used it somewhere. But if they choose to use it this way and you as Kel and Kaylin could do, they can make this call, they can set this up so it happens where they're funding a policy and they can dictate how much is going into that policy based on what that death benefit is. So there's lots of flexibility that's there for you as a policy owner to do things like this and this, that death benefit of Cals would be able to fund this policy on their son. And what does that do when their son gets to be this age? This policy by itself was going to have $1,200,000 in cash value. And look at the death benefit. There's just all kinds of things that when you think long range and Nelson always taught us think long range, think multiple generations. That's why I started. One of my biggest kind of objectives was is to help my children and to help my grandchildren because they're going to get more benefit of out of what I do and the way I'm living becoming your own banker than I'm even going to get out of it. Because they're going to get to work with an influx of cash when I step out of life and they're going to be able to use that in a way that just builds more and more value over time. So that's what cat can happen here for this young couple and their family. Even when we just take a look at one child that goes on and we get this opportunity because, hey, I get it, we don't know what their son's going to do, but this just shows you the possibilities. Now I also want you to think about when Kalin passes away, they can do the same thing. They're passing wealth and knowledge on to the next generation. Think about how this could support their grandchildren and the future of their farms. Because I know I've talked to a lot of farmers that that's kind of a key thing is they want that farm to go on in their family. And this gives you an opportunity to up the likelihood that that will happen. So again, just as a reminder, the difference between you getting stressed and staying relaxed financially is who's in control of their banking function as it relates to your needs on your farm or ranch. Just wanted you to know that you don't have to put your money in prison all the way through them numbers that we looked at, Kel and Kaylin are going to have access to that capital, that cash value. They're going to always have access to 90% of the cash value in their policies. So you don't have to put your money in prison. You know, you can use it right away. That's the second truth and the third one that I really wanted to express to you tonight is you don't have to be rich to get become your own banker. And Nelson said that all the time. You don't have to be rich to become, to be in the banking business. If you implement this process on your farmer ranch, you'll be building a business to support your business. That's really what it is. It's something different. It's different from what you do to make your living. But it's going to be a business that will support your business. And I just wanted to encourage you to think about that. Now again, I just wanted to remind you, if you want to learn more about this, just schedule your call. Pretty straightforward. You just have to click the link that comes to you or text the word schedule to 780-809-4599. Just reserve that time. Talk about it doesn't cost nothing to talk and look. And if you do that, what are you going to get? Well, you're going to get a one on one conversation with an authorized infinite banking practitioner. And that person has been trained to do this. You're going to get a clarity meeting. What I'm going to tell you is hey, we're not going to leave you alone to do this process. We make this commitment to our, to our clients, those people that choose to work with us. It's lifetime mentoring quarterly group coaching sessions. You know we have a great platform, it's called our client portal. You can go there and you can look at previous client coaching sessions. We do that, we get the group of our clients together and we teach. And sometimes they share how they're using that process to make a difference in their life. It's just a great way to help those of us in this community and those people that are practicing this concept in their life. Kel and Kaelin knew there was a better way and at first they just didn't know how to get there. They were missing the knowledge of how to do it. And a coach. So what I'm going to encourage you. Even the best athletes have coaches. Now I don't know if you're a tennis player or know about tennis, but this is Yokovic and He's got a coach and he's, you know, number one in the world tennis player. And of course, most of us will remember Gretzky and Gretzky, even though these players, these, you know, Michael Jordan, one of the greatest basketball players of all time, even though they were and are the greatest at what they do, they still have coaches. And that's a life, you know, that's something that you always want to think about, do I have a coach? Because I can make a difference even at the top of my game. It encourages me and shows me how I can get better. So I'm going to encourage you to get a coach. Now we have all kinds of resources and they're available on our website. And you know, towards the end of this, we can do a bit of a tour on how that is. But we got books available to you, we got audio. So I'm going to really encourage you. If you haven't subscribed to our YouTube channels, the podcast channel is called Wealth Without Bay street and our YouTube channel is Bankers Vault. Those are two great ways to learn about this concept. And then there's all kinds of books that you can get access to on our website. I'm just going to encourage you to go there and take those in. Now We've got over 500 five star Google reviews. Why does that matter? You say, well, it's a way of helping others understand that this is something that, you know, they could, that could make a difference for them. And really it's just people, people go and look whenever they look, find out about something. You want to go check Google reviews. So we always ask people, hey, you know, if you like what we're doing, if you find them value from what we're doing, please, you know, give us a Google review. Because that could help somebody else on their journey in life to learn something they didn't know. So if you enjoyed what you've learned here tonight, I'm just going to encourage you to know, give us a Google review. And even if you didn't, it's always good to do a Google review because good feedback is always good. But that's how you can help someone else discover how they can make a difference in their life. Now the next thing I'm going to tell you is you don't have to get a policy or a system of policies from us. There's lots of great people you can work with. I'm going to encourage you to do is just don't do this alone. Farmers or ranchers who do this all have a good coach. And so I'm just going to encourage you even if you don't work with us, get somebody that infinite banking practitioner. Make sure they're trained to the Nelson NAS Institute and then they can do a good job of helping you on your journey. And here's a question I have for you. If all this process did was keep more money in your family farm or ranch, would it be worth it? You know, creating a peaceful stress free financial life, would it be worth it? Picture a day when financial control or your farmer ranch is in your hands and not the bank or the government and you know a certainty your finances are exactly where you want them to be. And then when you pass on your farm or your ranch, your children doesn't end up being such a big strain on them and the business. So again I'm just going to encourage you. If you want to learn more about this, take the time to sign up either via text the word schedule or the links that we sent you. If you text that word schedule to 780-809-4599 that can set you on the path to learning how you as a farmer or rancher could grow capital.

Yeah, thank you Dan for such a amazing presentation. I especially enjoyed your case study and also Nelson's teaching. Thank you for the quotes from the book. Lovely PowerPoint as well. So thank you so much. And we also appreciate if you put your feedback into our Google review that help us to grow our business and let more Canadians, Canadian farmers and ranchers to know this great concept can grow their own capital as well.

And until we get a chance to speak again, I just wish you all the very best.