Sable Gill and Liz Lamond show how to borrow against a whole life insurance policy's cash value to fund investments while the cash keeps growing. Instead of using $30,000 directly to earn $3,000, you borrow $30,000 against a $38,000 policy that compounds roughly $20 a day, keeping your money working on two fronts.
$3,000.
$38,000.
Approximately $20 per day.
About 90%.
$30,000.
It's not about what we are going to buy, it's how are we going to go about buying it. That's going to be the difference between us and someone else. Because what you are doing financially is a comparable against someone else. If you're making progress compared to what. If you're not making progress compared to what, it's always comparable. Right? So what we do in life financially is always comparable against someone else. That's what we determine, whether it's good or bad.
How do you make money without working harder? I'm here with my colleague, Sable Gill. And I'm Liz Lamond. And we're going to talk today about how you make money without working harder. We're infinite banking practitioners with the Nelson Nash Institute, and this is something that we love talking to our clients about all the time. There is different ways that you can fund what you're wanting to invest in, and we talk about the two different ways that you can do that. Because how you fund it is just as important as what you're going to fund. So. So I'm going to give an example of what people typically have been taught to do in terms of funding something. So let's say we have $30,000 that we're going to lend out on a private investment deal for 12 months and we're going to get a 10% return on that. So at the end of the 12 months, we'll get our 30,000 back and we will have also made $3,000. That's one way we can fund it. During that time, though, it's worth noting that while that $30,000 is out, it's only earning 10%, it's not doing anything else. And while we're getting a good return on that money, that money is not available to us for anything else. Because if we needed the money and interrupted getting that return, we wouldn't be able to get the full 10% that we're looking for out of that investment.
You know, one of the things that we teach here at Assembly Financial is the process of becoming a banker. Unlock the infinite banking concept. And one of the things that I've learned from Nelson and our mentors is it's not about what we are going to buy, it's how are we going to go about buying it. That's going to be the difference between us and someone else. Because what you are doing financially is a comparable against someone else. If you're making progress compared to what. If you're not making progress compared to what, it's always comparable. Right. So what we do in life financially is always comparable against someone else. That's what we determine whether it's good or bad. So I'm going to show, I'm going to share my screen here, Liz. So Liz, building on your example, so the example is we take $30,000 to go buy an investment which is going to earn us 10%. So overall in the investment we will make $3,000. So if you are looking to invest into something that's going to earn 10% with 30,000, it's going to earn you $3,000. So let's put that. So option one, which is the most conventional way to do it? Option one. So this is my handwriting.
Yeah, we can read it.
Okay, thank you. So we take $30,000 and we go invest it and earn 10% which is going to produce $3,000 in extra money. Objective accomplished. This is the most common way. Now the other way that we can do it is which is using the process of becoming a banker. So again, it's not about what, it's not about that 10%, it's how we should go about buying that investment at 10%. That'll be the difference between us doing good or us doing really good. So the option two that I want to share is the process of becoming a banker. So option two, so you have your 30k. So I'm going to use.
I'm going to back up a little bit, I'm going to talk about. So the tool, the tool that we use to make this process happen is called a participating dividend paying whole life policy. And one of the attributes in this tool is. So as you're putting money into this pool as. Sorry, as you're putting money into this tool, the money is going in as premium, which, it's a life insurance policy. So there's premium attached to it. You're putting money as premium, but you're also building cash values in the policy. And that cash values is being built by the insurance company to know more about this tool, to know more about the attributes of the tool. Make sure that you check the video right on top to understand the attributes of the tool. So let's dive into this example. So I'm going to use my own policy. As example, I have money in my policy. I just checked today the cash values of $38,000.
Now this policy I started last year, so I put two years of premium in it and it's built up to a point where it's got $38,000 of cash values. Now the cash values in this policy are growing every single day. The daily growth in this policy as of today is almost $20 a day. So every day I age, every day I get one day closer to age 100. My growth in the policy is $20 per day. Every day it goes up by 20. So I have an opportunity to invest into the same investment, which is going to produce 10%. And I know I have access to cash values in my policy. So rather than taking cash and going through the option one, what I'm going to do is I'm not going to take my cash. I'm going to borrow against my capital, which is cash values in this policy. Insurance companies allow me to access 90% of my cash as collateral. Sorry, 90% of my cash is collateral with the insurance company and I can access that money as a loan. So I can pledge 90% of this cash value as collateral with the insurance company and I can get a policy loan. And just for simple math, let's just assume that I'm able to get a loan for $30,000.
From my policy. Now, Liz, if I initiate that loan, is that going to interrupt the growth of my own money?
Your money's still inside the policy, compounding?
Yes, my money is still inside the policy because I did not touch my cash value. I borrowed against it as a loan directly from the insurance company. So my money still grows at $20. Now I'm using insurance companies money to go invest into that investment at 10%. So I am growing and compounding my wealth in the policy as well as I'm able to borrow insurance company's money now to multiply wealth for my family. Because I'm not interrupting the growth of my money. I'm borrowing against it to go buy another investment. So now I'm adding another way to increase wealth. So I'm multiplying wealth for my family by taking insurance company's money to accomplish the objective. So I'll still earn 10% on the investment, but it's not going to be using my money. It's going to be using insurance companies money. My money is inside the policy. And when I request that money as a loan from the insurance company, there's no questions that are asked. The only question that they ask is, do you want this money as a check or do you want this money electronically deposited? And that's it. The money shows up. I'm able to access money without any intervention from the insurance company and I'm able to capitalize on opportunities that will come up. And this is how we are able to multiply wealth without working any harder.
In your example of option two, not only did you earn the 10% still on that investment, but your money was growing at $20 a day inside your the actual return at the end of that year is those two amounts together. So the amount that you've actually made on that one lot of flowing money through has multiplied, as you spoke about. So that's the way that you can increase your results exponentially. So if you imagine doing that over multiple years, then that multiplication method just continues, and you're not working any harder. You're just your money is working harder rather than you working harder, which is really important. So if you'd like to learn more about how you can implement this process in your own life, click on the videos that are appearing beside and link into our masterclass.
