How to Recycle YOUR Money In CANADA
Vern and Taran explain how Canadians can use whole life insurance policies to become their own banker, accessing capital through policy loans instead of relying on commercial banks. They show how permanent participating dividend-paying policies let you capture compounding growth while retaining control of your money.
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Canadians earn an income and their income has to get deposited. Where? Well, it has to get deposited in someone else's bank. That money gets deposited and that bank actually harnesses the financial energy of your deposit. Money capital has two values. What it can buy today and what it can grow into in the future. So you're doing all the work and the bank is actually harnessing all of that financial energy and recycling that money. And they're not sharing any of the profit with you. They're. And it doesn't have to be that way. My colleague Taran and I are going to show you exactly how you can recycle money just like the banks by becoming your own banker and practicing the infinite banking concept. In Canada, we're talking about recycling money. We're talking about doing exactly what banks do to generate profit and create income streams. We can do exactly what they can do, can't we? We currently earn an income and unfortunately it's a little bit out of our control. The money first has to get deposited in someone else's bank. But we can actually take that money and deposit it into our own private banking system. But why on earth would we do that? When we deposit money in the commercial bank, Terran, are they just letting that money sit still or are they putting it to work in some way?
Well, that's what I thought many years ago, but clearly that's not what's happening. What's happening is when you're putting your money into a commercial bank, that money is being used by the bank. They're probably flipping it and making interest on that. And then they take a portion of that interest and give you that little portion for putting your hard earned money into their bank.
So it's definitely not sitting there a hundred percent. The money that gets deposited in the commercial bank, it can't sit still. The bank has to put that money to work to create profit, to keep the whole kind of game going. So you're doing all the work. They're getting use and control over the money. They're putting that money to work to grow profit and income streams for not you, the shareholders of the bank. And like this should be extremely frustrating when you think about, wait a minute, I'm working really hard. And then you deposit the money in the bank, they put it to work and then you look at your, your, your online banking and you see that there's a balance there and we just move the money electronically. The minute that you use that money, you've permanently transferred it away from you forever. You'll never get it back, but yet they've already harnessed the growth potential on the money. And it just doesn't have to be this way. We don't actually have to deposit and store our money in someone else's bank. In fact, we don't even have to necessarily borrow from commercial banks to achieve objectives like financing vehicles and whatnot. Can't we do all that ourselves, Taran?
Absolutely. By following the infinite banking concept and you can watch a video here in the link above and you can check it out in the book that Vern is showing on the screen, you will learn a process of how you can take that control in your into your own hands and eliminate the use of a commercial bank.
Absolutely, Taran. You know we will. I think we can easily get the link here, but there'll also be a link in the post description below. If you're in Canada and you want to practice the concept of becoming your own banker, make sure that you go to watchibc.com that's watchibc.com and you'll get access to a 90 minute webinar that will actually walk you through the beginning stages of the process. Just like Taran had mentioned, we're both fairly young guys, but you can see I have a little bit more what I like to refer to as wisdom here. You're not yet 30, is that right?
Yeah, I'm getting there, holding on to dear life.
Oh, good for you, man. But you're an ambitious guy. You're working hard. You're on our growing and expanding team. You're going to be creating a lot of success, wealth and income throughout your lifetime, aren't you? Even up till now. I mean, you've worked a lot of years already. You've earned income your whole life or well, the amount of time you've been working. Same with me. Now just imagine for a moment, I'm just pulling a number out of a hat here. Okay, let's say between your age now and let's pick the traditional passive income retirement age age 65. So that's approximately 35, 36 years away for you. Let's just again pull a random number. Let's say that your average income is $100,000 per year. I don't know what that is, but who cares is my math right? Is that three and a half million bucks between now and then? Approximately.
Yeah, yeah. 35 years.
Yeah. Okay, great. Let's just imagine because keep in mind here, we are not talking about investing money in Canada. That's not what we're talking about, folks. Investing is a completely different conversation. We're simply talking about the banking process, depositing and growing money. So if Taran's going to earn three and a half million dollars between now and age 65, if he deposits that in someone else's bank, Taran, how much do you get to spend and use?
I get to spend and use whatever is in the bank account. That's about it.
Yeah, you get to deposit three and a half million bucks. Of course, we know there's taxes and fees and yada, yada, yada, all that stuff. Well, we're using money to achieve all of those objectives, living expenses, everything. And you earn three and a half million bucks, you get to use 3.5 million bucks to pay your bills and pay your mortgage and even invest in all those other objectives that you want to achieve. Well, if we think about how capital works, what do we need to grow money? Well, we need capital. Three and a half million bucks, and we need time. Well, right now, when we're depositing all that money in someone else's bank, and every dollar that you've earned so far has actually flowed through the books of someone else's bank, they've harnessed that growth potential. Okay, so your money is capitalizing someone else's bank so that they can grow profit. And so Taran's going to. Potentially, if he weren't practicing becoming your own banker, he'd be flowing all of that capital through someone else's bank. Gosh. Even if we looked at a very, very low rate of return or interest rate, if you could find a way to harness that energy and actually compound and grow that capital, but not just compound it, grow it with uninterrupted compounded growth. Right. When does most of the growth occur to ran when it comes to compounding, is it early on or is it in the back end?
It's mostly always in the back end.
Absolutely right. The more that's in there, the more time that goes by, the more that's going to grow in compound. So what I'm getting at here is right now, people in Canada are facing a major problem. And the problem is that money and energy is flowing away. So what we want to do by implementing the process of becoming your own banker is we want to do business with, ideally, what's called a mutual insurance company. And the insurance company, a mutual insurance company is actually owned by me and Taran and all of what's called participating policy holders. Participating means that we're actually participating in the growth of this profitable company. These insurance companies have been profitable since they've opened their doors in Canada. These companies have not failed to pay a dividend for more than 172 years. I don't know if there's any other asset class that could have that same track record, but that's what we're dealing with here. Where else would be better to store your money than somewhere that has one of the best, most solvent financial companies on planet Earth? Taran, we get this tool. We need a tool, needs some kind of tool to practice the process of becoming your own banker. We use a permanent participating dividend paying whole life policy. Again, ideally with this mutual insurance company. Nelson says it very clearly in his book. We don't actually need a policy to practice banking. It's simply the best tool that we've been able to find to achieve the objective of becoming your own banker for many, many reasons that other videos that we have here in our playlist will help expand on. But for now, if we just think about this for a second, Taran, we're now choosing to either carve out our existing cash flow or some of the savings that we have living in someone else's bank. We can change the address and deposit it over here at this mutual insurance company in a permanent participating dividend paying whole life policy. Right from day one, there's going to be cash value that starts to accumulate in this policy system. And of course there's a death benefit and God forbid, hopefully that's long into the future. But the death benefit is really significant in this equation in terms of how the capital in the policy actually grows. This policy system is in no way shape or form an investment. It's a legally binding contract that Taran or I or whoever the owner of the contract owns, which makes them a co owner in the life insurance company. And it has a very important specific contractual guarantee. And it says that.
Cash value down here, there's cash value that's accumulating right from day one. And this other hand represents the death benefit that starts up here. So God forbid I become an angel, I deposit one premium. A lot more capital is going to flow to my family if I pass away than what I put in. But let's assume that Taran and I live a long happy life and over the next 35 years while Taran's earning money. And you're just building this system, Taran, and capitalizing. Now, of course we know overnight we can't put our entire income into the policy system. It does take time, build it up. But you start where you start where you Start. Right. Did you mind if I ask you, Trent, how many policies do you have in force today?
So I'm starting like you said. I started at one. And I'm actually currently working on getting my second one. And yeah, all right. That's where I'm at right now. So, like you said, you start where you can. I started where I could, and now I'm at a stage where I'm comfortable to start a second one.
Have you been able to access capital and achieve some objectives with that policy system so far? The policy eight.
Yes. Yes, 100%. One of the things I did was propose to my fiance by utilizing a policy loan.
Hey, congratulations, man. That's amazing. So wait a minute. You're telling me that you could have taken your hard earned savings and I'm assuming by proposing you mean maybe a trip or a ring or something like that, you could have taken your hard earned savings, or God forbid, you could have done what a lot of people in Canada do, which is take a line of credit or borrow money and go spend a ridiculous amount of money on some diamonds and then have to make payments forever. I'm sure you're feeling really good about that after the proposal. But instead, what you did was you capitalized the system, you took a loan. And that didn't actually interrupt the growth within the policy system, did it? You're still creating momentum on that money. You got the ring. And then now, because you're a responsible banker, I assume that you're now making a loan repayment back to your system. Is that right?
That is correct.
See, here's the thing. We need to wrap our minds around what's actually happening here. People hear loan repayment, they go, oh, my gosh. Well, now you have a loan to ran. Now you have to make a loan repayment. Well, let's think about this for a second. Option number one, you save up money in someone else's bank. You take cash, you pay for the ring, right? Now your money, that capital is permanently transferred away. As I said, that energy's gone forever. You'll never get it back. That's a permanent wealth transfer. Well, don't you have to start saving money again anyway for your next major expense? Okay, so couldn't you consider that like a payment? So you're just depositing money back in someone else's bank, Right, While they harness all that energy? Okay, well, I build up my policy system and I access a loan and I pay for the ring. And now Taran, who is 100% in control of the repayment, Schedule.
It's me. It's up to me.
Right. And now isn't now when you make the deposits back to the insurance company back into your policy? Aren't you a co owner in that insurance company? Isn't that insurance company putting that money to work to grow more profit so they can share with all of us?
Yes, yes, absolutely. And that's how we get dividends.
Sounds a lot. Starting to sound a lot like what's going on at a bank, but. Except it's working for us now. When you make those loan repayments back into the system, who actually gets use and control over that money? It's locked up. Right. Like you can't go back and re access that money, can you?
You're talking about my system.
Yeah. When you repay the loan.
Oh yeah, 100%. I can go back in and then re access that same plus whatever growth that my policy has experienced.
Okay, so let me get this straight to Rand. Let's just pull the number out of a hat. Let's just say you're paying back $100 a week or $100 a month or whatever. So the cash is growing every day you pay back $100, you're telling me that you could actually go back and access more than what you paid back?
That is correct.
Whoa. So then you're collecting and accumulating the money while your capital keeps growing and gaining momentum. So you always have access to an ever increasing pool of financial value so that you can take advantage of other opportunities in Canada.
100% uninterrupted compound.
Wow. That sounds pretty good. So now, Taran, correct me if I'm wrong, but this is not like a silver bullet, right? Like, this doesn't happen overnight where you can control the entire banking function and put all your money in there. Like it takes time, right?
Absolutely. Absolutely. It takes time. And that's one of the mindsets that you have to develop, be able to think long term with this process kick.
That instant gratification thing that we all have to deal with. You know, I talk to people all the time, Taran. I sit down with people from anywhere from even younger than you all the way up to their 70s. And you might be feeling this already. Just for context. I'm 38, so I'm not quite 10 years older than you. I don't know if you're feeling this yet, but I often ask people, I say, they go, oh, it takes. You know, obviously we can start accessing money right away. We don't have to wait 10 years. But I'm just using that as an example, I can start accessing some of the capital out of the system via policy loan right away. But when they start to really see the momentum grow, let's say that's four, five, six, eight, ten years in. And sometimes people get the mindset to go, ah, well, you got to wait 10 years for it to really explode, though. Well, okay, first question is, isn't the time going to go by anyway?
Exactly.
Yes. And that whole time, aren't you going to be depositing money in someone else's bank anyway? And now that you're 29, I think, and I'm 38, I can tell you right now, 10 years is already gone. It is a blink of an eye, man. So if I really want everything today, like, how much further am I going to get ahead if I don't practice? The process of becoming your own banker in 10 years goes by. So 10 years is going to go by anyway. And all we're doing is creating more and more momentum as time goes by. And I just wanted to hit one more point. You said that you're starting policy number two. People get it in their minds. I'm going to go out in a limb. Taran, you don't have to tell us how much premium you're depositing, but I'm going to assume it's not like 100,000 bucks a year in that first policy. Right. It's like a modest amount. Is that fair?
Yeah, yeah, modest amount.
It's more about getting started than how much you get started with. I don't care where you start. Just start there. You build up a little bit momentum, you achieve some objectives. What's happening? You know, the income, not everybody, but income trajectory is likely to continue to rise.
Yeah.
So as the policy A starts to create more momentum, maybe as you earn more, more income, you eliminate a liability. Well, you freed up some cash, didn't you? There's cash available and you did the smart thing. You said, well, I want to put more money in my policy. Well, the policies, the way they're designed is that they have a minimum required premium and a maximum that you can put in. Well, if you want to deposit more than the maximum, just like any other bank branch that you see out there or any other gas station or a fast food restaurant, don't they create more franchises, more branches?
We're doing the exact same thing with our policy system. I'm up to 11 policies now in my system. I've been at it a little bit longer than Taran, but once I get to the point where I can't deposit anymore, capitalize policy A anymore. There's nothing stopping me from starting policy two and so on. And that's exactly what you're in the process of doing. So now you're recapturing more of your income is now going into your own bank instead of someone else's. So you're starting to harness more of that energy over the next 35 years that you're going to be sending away anyway. You're going to be depositing it somewhere anyway.
Absolutely. Because your money's got to reside somewhere, right?
Absolutely. Absolutely. This is really good. So, you know, there's a lot of questions that people have. Like I said, hey, how do I get started? And we have a ton of resources. We have. Again, go to watchibc.com that's watchibc.com we actually have visual guides to show people, hey, here are some steps that you can take to actually educate yourself and get on the journey. The most important step in the equation for me, Taran, you tell me what your thoughts are. It's clarity. There's nothing to be sold here. You need to actually discover for yourself. Like Nelson would say, it's more caught than taught. Right. What happened for you, Taran, if you could give us a high level view. When you started to learn about this process, something snapped in your brain and you're like, I got to take action. Like, this is the right fit for me.
For me, it was. I was always interested in the financial world and investments and everything, but it was the process and the underlying principles of the insurance company. What you said earlier regarding the contractual guarantee and if you know anything about investing, there is no, there is no guarantee. So when you're working with this, like, like Vern said at the beginning, this isn't an investment. It's not. You're simply, you're simply changing where your money resides. Instead of having it in a commercial bank, you are now having it in your own personal bank, you could call it. And that's what stood out to me and that's what got me into this journey.
Yeah. And then, and then obviously you got licensed. You're now on our team, which is awesome. And you're in, your role is changing and morphing and all that, because you clearly understand the problem, which is money's flowing away, someone else is getting used to control over it. And you want more Canadians to understand how this process work so that they can benefit many in the same ways that you did. But what you did to really determine if this is going to be a fit is you read the book, you watched videos, you went to watchibc.com, you got together with an actual coach, somebody who's implementing this process and who could show you the results that they've been able to produce and they guided you along. I was thinking about this this morning, the weirdest thing, right? I was on the elliptical and I thought, wow, you know, sometimes people, God bless them. Look, if you don't want to be in the driver's seat of your own wealth creation, you don't have to be. But if we want to create wealth, if we want to get good at anything, think about soccer, football, business. Think about the most successful people that you know. Aren't they committed in some way to learning and growing and getting coached and falling off and getting back on and making mistakes and so on? They make it a priority. So if you want to create wealth, if you want to implement the process of becoming your own banker, you must be willing to commit the time and energy to determine that, yes, this is absolutely a great fit for me, or no, it isn't. Well, boo hoo. If at least, if you discover that it's not a good fit, at least you now know, rather than just sitting there and thinking about it for the next 35 years and going, Gosh, when you're 65 or 70, should I have done that becoming your own banker thing?
Right?
So just invest the time and energy, take all the time you need. We have a ton of resources so that you can learn and determine if this process is going to be a really good fit for you. Remember, your money has to flow, it has to get deposited, it has to reside somewhere, as Taran so eloquently said earlier. And it may as well flow and be deposited in the banking system that you own and you control so that you can harness that financial energy and the growth potential on the capital that you're already working for and already depositing somewhere in Canada. So make sure you go to watchibc.com and we look forward to connecting with you real soon.
