How To Stay A Step Ahead of the Crowd Financially

So what is the infinite banking concept? The whole idea is to recapture the interest that one is paying to banks and financial companies for the things that you need in life. It's not about investments of any kind. It's about how one finances the things of life and it certainly include investments. It's not about rates of return. As time goes by, interest rates go up and interest rates go down. But the process of banking goes on no matter what. So here's the question. How much of it do you control as it relates to your needs? There's going to be three kind of things that I want to get covered on my agenda. First part, we're going to talk about all the noise that's out there in the financial world and is there a better way? Next, I want to talk to you about principles that you could use in your financial life just to make a difference and help you with success. Now I'm also going to touch on what the principles I use in my family banking system just to help you understand some about how I use my system and the principles that guide me. Next, we're going to talk about a topic that quite often I get asked like, how long do I have to pay my premiums down? We're going to have a little conversation about what? How long should you pay your premiums? Principle. Here's a definition of a principle. It's just a comprehensive or a fundamental law, a doctrine or an assumption, a rule or a code of conduct. And here's one. I was like, this is a good principle just to live by. I've used it successfully in my life. Surround yourself with people that's smarter than you are. So I'm just going to encourage you. If you are doing that, you got an opportunity. Let's jump into the old financial noise. Every one of us faces a lot of financial noise. It comes at it from all different directions. Some of the things that we get to see is the market volatility. We hear all about markets. And every morning when I turn on the news, usually they have some kind of market report. And it's just like, it can really be a lot of stuff that comes at us all the time. Sometimes it's just from information, information overload. Don't you feel that? I do. I see there's all kinds of information. How do I vet it, how do I know what's true? And so I always encourage people to have healthy skepticism in whatever you hear. So you have to do a lot of research. You have to take your time to find out what's True and what isn't. And then you think about all the options that are out there. What can you do with your money? Well, that list seems endless. And here's just a few that I've listed. You know, we all know about stocks and bonds and things like mutual funds, you know, real estate, life insurance and list just goes on and on and on. You, there's lots of choices out there. So that's kind of the noise that we get faced with. I wanted to talk about John Smith and he's a 43 year old accountant. You know, he went to university, got his accounting degree, started working at a small firm, been there for a lot of years. You know, now has a young family and he enjoys doing, you know, a lot of the things that, you know, some of us enjoy doing like golfing and just taking time on the weekends to relax. But lately he's been getting more and more anxious as he thinks about financials, his state and retirement. That's quite common. I find when people get towards this age and on, they start to think more about retirement. Am I going to have enough? And so you start to get anxious. Am I doing everything I need to do and how do I look and how do I find more financial security for my family and her future? Now a question I've got for you. Well, how does all that anxiety and stress impact us all? Well, you know, one of the things I know is it put me in the hospital one point in my life. We all know that not all stress is financial stress. Whether it's financial or not, stress is still stress. Let's ask ourselves this question. What are some of the financial stresses that are facing families today? So lately this is on the news all the time. It's inflation, cost of everything's going up for everyone. And of course then there's our interest rate reality. Interest rates are going up, that's putting more stress on families. And then they're just all things related to cost. So how should we manage it? So I'm going to share a little story that it's real. I grew up around horses. I grew up in a family farm and we didn't have quads and motorbikes, we had horses. So that's what I got to use. And I got to be very familiar with horses and I started to really enjoy being around horses. So because of that, I've used horses throughout most of my life and I've been really blessed to be around a lot of horses and get to know them. And they all have their own personalities and I'VE trained horses. I've raised them from, you know, foals all the way through to, you know, being saddle horses and all those good things. I've been blessed in life to be able to work around horses, and I've taught horsemanship courses. I was fortunate to be able to work with young people multiple times all through the summer where I was just working on horsemanship classes with young people. Nothing greater than being able to see how they can learn something and get more comfortable around a horse. So I'm very blessed about that. And then at the age of 46, I took a horsemanship course. I thought, yeah, I'm going to learn a little more about horses. So I'm going to take this course. So I signed up for it. It was in northeast British Columbia. And the trainer, the instructor was Glenn Stewart, and he's been working with people like myself and horses for over 40 years. And I took his program. But the one thing that became very apparent to me when I showed up there and started that program was I didn't realize I knew next to nothing about horses. Now, what he could do with my horse would have taken me six months to get that horse to do that, and he could do it in a matter of minutes. So I really started to realize what I thought I knew. I really didn't know. I was around horses my whole life, but I still didn't know how horses really thought and how they worked. So what I want to start to ask about, do you use money? We all use money now. How often we use it and how long will you use it? Do you really know how money works? Think about all the money that's flowed to your hands today. Think about how much more will throw will end up flowing through your hands as you live the rest of your life. And it always begs this question, because here's where I went through a lot of life, not really knowing everything I needed to know about money, having a lot of it flowing through my hands and not keeping much of it. So the question for you is, how much do you still have? So I want to share a quote. You know, when you think back when people thought that the earth was flat, you know, the greatest obstacle to discovering the shape of the earth and its contents in the oceans was not ignorance, it was illusion of knowledge. And that is so often what I find. I have to really protect myself, that I don't get to that point where I think I know something about something, but I really don't know about that, whatever that topic is. And money was one that I've really been on a great journey in the last number of years just getting to know more about money and what principles should I apply to make sure that I keep more of the money that I earn. What changed for me? That's a great question. I was introduced to this man in his book. So back 2013 I read the book 2014 I got to meet the man. That's what changed it all for me. So what can you learn from Nelson Ash and the books that he's wrote? I'm going to encourage you if you don't have a copy of the book called becoming your own banker you've got an opportunity. I'm really going to encourage you to get that book. It changed my life. That book is really one of the best investments I ever made. And then I've got these other two and I, I can tell you that they are something I treasure because there's so much good content, so many good principles to live by financially that Nelson shared with us. So you got an opportunity if you don't have that book. Here's a question. So what is the infinite banking concept? Well the whole idea is to recapture the interest the one is paying the banks and and finance companies for the major things that we need during a lifetime. I need to learn how to spell but that's what it should say during a lifetime. Another thing that he said in his book is the infinite banking concept is an exercise in imagination, reason, logic and prophecy. Let's take a quick look at one of the examples that he has in his book and it's all about imagination. Here we go back to the 1700s there's Gass and he's a German mathician. This at the time Nelson writes about this in his book he was a seven year old at school and the old schoolmaster gives this group of boys an interesting task and it was just simply add up all the numbers 1 through 150. You know he looks back there and there's Gas. He's just looking out the window imagining now he's thinking it all begins with the way you think and he's thinking and he visualizes a line and this line has the figure 1 on the left hand side and the figure 100 on the right hand side. At the halfway point which is 50 he cut the line and he folded up the other side so that the left. So there's now two lines that are parallel kind of looks like this. Now he went all the way from, he's thinking about this all the way from 1 to 50 on one side. Then he started with 51 and went all the way back up to 100 and put it on the other side. And the two numbers, you just simply added them together. And what he was able to imagine and, and figure out because really it's a fixed. Numbers like that are fixed. You can't change them. All sets of the numbers added up to 101. So how many sets would he had? He's pretty sure as long as it had 50 sets times 101. So there it is, there's the answer, 5050. And he just takes and writes it down on his slate and teacher's going, how's that going to work out? Well, he was right. He was the only one that was right and he got there in a short period of time. So use your imagination. That's one of the principles I want you to remember what the infinite banking concept is. So why did Nelson put that story in his book? Well, young Gass had discovered a relationship between numbers that is fixed and nothing can be done to change it. And principles like this have been there all along. Principles are the way to deal with financial stress. But in most cases no one has taught them to you or why they matter. So we're going to look at the book. If you really want to know what becoming your own bank or the infinite banking concept about, it's all in the book. So here's the first principle. Every decision you make with money is a financial decision. You either pay interest to someone else for the use of their money or you give up the interest you could have earned. And here's something I want you to know. There are no exceptions. Paying interest to someone else is like walking into a headwind. You can get there, but it takes longer and it requires more effort. We've all been there trying to walk into a good wind and the wind's just making it difficult for us to get on. Another thing a lot of people don't realize, banking is the most important business in the world. All business as we know it would come to a halt if money's not moving. We're all in a lot of trouble. Money has to flow and it does all the time in our society, in our world, money's always in motion. Another principle, you can't get a better rate of return without first controlling the banking function. So when you think about all the noise that goes on out there and what we hear, it's always about rates of return. You put your money here, you're going to get a better rate of return. Well, what would it look like to control the banking function? There's four characters in the financial play. So the first one is the depositor. I think we're all pretty familiar with, you know, going to a bank, making a deposit, whether it's online or in person. I think we've probably all done that. The second is a borrower and there's very few people that go through life that haven't been a borrower. So that's another key character in the financial play. The third one is the banker. Well, who's the banker? Well, they're the ones that get to decide whether you're going to get that loan or not and you know how you're going to pay it back. They're the ones that said the rules and you know, you abide by those rules or you just don't get the money you want. And the fourth one is the bank owner. So those are the four characters that are there in the financial play. So when we talk about you can't get a better rate of return without first controlling the banking function, you want to be thinking about those four characters in the financial play. So we're going to go to a little case study. But before we get too far in the case study, I want to tell you, becoming your own banker. The infinite banking concept is about the power of dividend paying whole life. What is participating dividend paying whole life insurance? I want to briefly go through the components that make up that particular product. First, it's premium. So when we go look at this case study that we're going to look at, I decided how much premium that I was going to put into the policy that we're going to look at. So I made that decision. So you, if you're participating and dividend paying whole life, you get to pay the premium. You get to decide how much premium you want to pay. The more you put in, the more compounding effect that will be there. Second, the death benefit. Now we talk about banking. What's death got to do with it? There's a living benefit of the death benefit and then there's a dying benefit of the death benefit. So when someone dies and what we do, if you are the life insured in a dividend paying participating in whole life insurance policy, there's going to be a tax free lump sum of money paid to your beneficiaries. Never underestimate the value of the death benefit. It's an anticipating dividend paying whole life insurance policy. Next, it's cash values. Now cash values are what we use for this process, we use the access to cash value that we get. So cash values, they have to increase every day by contract. And it's tax free. That increase is tax free. And the key thing to remember, the cash value of a policy has to equal the death benefit by age 100. Next, it's the dividend. So as a participating dividend policy owner, you share in the divisible profits from the life company kind of key. See how it's kind of key that, you know, we get the dividends and we get the share in the profits of that life company. So those are the four pieces and we're going to look at how they play out in this case study. So in 2023, I do lots of private lending, but this one is going to be one that we look at. And it's just in 2023 and I started it and this is the principal amount that I lent to the borrower. I lent him $50,000. Now we got together, we talked about the terms and the conditions and all things. So here's some of the conditions. The term is 12 months. The interest rate that the borrower is going to pay to me is 15%, the monthly payment. So they're going to pay me interest monthly. They're going to come in at $625 a month. So $625 a month coming to me from the borrower in interest every month for 12 months. And then at the end of that period, I get the return on my capital. So let's just talk about a little bit about this. So how I did it, because I own that policy, I get control what I do with that policy. So what does it look like? I took a policy loan. That's something that the life company allows us to do. They allow us, we have the contractual right to borrow up to 90% of the cash value of each policy that you own or I own. In this case, I took a loan from the first policy I started when I started becoming your own banker in this process, it just happens to be the smallest one I have. I started a small policy and we're going to look at how it's helping me and my family at this point with this private lending opportunity. Why did I take it from that policy? Well, because I could. Every policy that I've got access to cash value in that I could borrow, isn't it important that I put that money to work? So this particular policy had enough cash value for this private lending deal. So hey, I wanted to make sure that my money Was being put to work. Like we said, money needs to be in motion. Just like a bank, banks keep their money in motion. So that's what I was doing. I was taking money. One policy versus the other doesn't make a big difference. The value I have is the value I have. So I wanted to put that cash value that I had access to to work for my family. That's just a good principle to remember yourself. Keep money in motion. I'm going to show you this little chart. So this is just a chart of this particular policy. And as you see in the bottom line, that was my starting death benefit way back in 2014. When I started that policy, I had a $111,000 death benefit. And the next year it went up. In the year after that, as I paid my premiums, it went up. And you can just follow it through all the way up till 2023. Well, I got $163,000 now of death benefit. If I use this policy and I borrowed $50,000 against it and I became an angel, what would happen? Well, the life company would simply deduct what I owe them before they pay out that the remaining part to my beneficiaries. But I just want to remind you, the cash value has to equal the death benefit by age 100. So. So I want you to think of this little chart, this little graph. And as my death benefit goes up, am I getting older or younger? So does the life company have less time to grow the cash value to a higher number? Well, yeah. So as these policies go on, your daily cash value growth gets stronger and stronger. In 2023, in this particular little policy, my daily cash value growth is going up $9.45 a day. That's right. I don't have to do nothing. I just have to live that day and the next day. And every day I live, my cash value goes up by that $9.45. If you have questions about how does that work, here's a great book. You know, this is a simple read, probably only take you an hour. It's just a great reference book that we have produced here at Ascended. Jason and Richard authored this book, and it really speaks about how cash falls the leader, and the leader is the death benefit. So now let's go look at the amortization table that I built for this little loan that I took from the life company. So this is the loan that I took out of my policy, and this is what I'm going to pay back over time to the life company over this 12 months. There's the interest rate. Right now the Life companies charging me 6.5%. I borrowed 50,000 first year. When the borrower borrow in, my private lending deal sends me the $625. What do you think I'm going to do with it? Well, I know what I'm going to do with it. As Nelson always taught us, you know, don't steal the piece, meaning don't steal from your system, have a plan to pay it back. So right away I'm putting that $625 back into my policy as a policy loan repayment. So when I do that, I drop the principal. Some of it goes to interest in that first month, but some goes to principal. And every month that I do it during those 12 months, you can see the interest cost is going down and the loan balance is going down. That principal amounts getting chewed down. So at the end of the year I'm only going to owe $45,629 to the Life Company by paying that $625,000 a month back. So that's what I'm going to know. Now when the borrower pays me back my capital, what do you think I'm going to do with it? Well, the first thing I'm going to do is pay off the rest of that policy loan and then I'm going to look for a place to put the other almost $5,000 that I'm going to get and I'm going to find somewhere to put it in as premium and another policy or this one if it's due for its premium payment. So I'm going to put that other amount of money back into this policy as premium. This is the total amount of interest income that I'm going to get from the borrower over that 12 months. Cost of interest to the life company was in that chart that we just looked at at 3130. And then taxes. Wish we could skip taxes. But no, I'm going to pay taxes on that income letter because that is taxable income. So I did a calculation based on sharing and splitting this with my wife. We're going to pay taxes and it looks like based on our marginal tax rate, it's going to be somewhere around $2,400 in 2003. You might be saying, okay, well can you deduct the interest that you paid to the Life company? Well, the answer to that is yes, I could. In this case I chose not to. My situation after tax income to the family, $1970 in 12 months. So how do we do. Let's see. All you got to do is take that amount divided by 50,000, works out to 3.94% after tax rate of return. Everybody's big on rate of returns. That's the rate of return I'm going to get after tax on that private lending deal. Well, you might be sitting there saying, hey, Dan, that's not that good. That's not that great of a rate of return for $50,000. Man, I got 15%. I thought that was pretty good. Then you might be thinking, well, couldn't you just use cash now? Do you have savings you could have done that with? Well, I could have. Now I did have savings. I could have done used to do that private lending deal. But I think we talked about why we don't want to do that now. If we took and just said, okay, Dan took cash and did the same deal, so still pay the same amount of tax. Now that's going to work out the same. So I'm going to end up with a little more money, right? $5,100. So you simply divide that by 5,000 and all of a sudden it's a 10.2% rate of return. Now that looks better. I have a question for you. So there would be a cost if I use cash? Every decision you make with money is a financial decision. Either pay interest to someone else or you give up the interest you could earn. Remember, there's no exceptions. Either pay up or you give up. But wait a minute. Didn't we miss something? I didn't use my money to do this deal. Whose money did I use? I used the life insurance company's money. So other people's money, I didn't use mine. My cash values kept growing every day, uninterrupted compound. That's a great rule if you can achieve it. So let's go through this little chart again. Remember my cash value every day when I went to sleep, wake up $9.45 more each day. So if we just Simply take that 945 and multiplied by 365, that's like $3,449 and.

Change. And if you add that to the 1970 net after tax profit that I made from that private lending deal.

How does it look? Well, now we've got $5,419.25. And again, if you just simply divide that by 50,000.

Now my outcome is like 10%, 10.8% better than if I paid cash and didn't even account for the cost. I spent in that cash. That's what Nelson meant when he said you can't get a better rate of return without first controlling the banking function. And again, when we think about the four principles in this little example that I went through, I paid the premiums, I borrowed from the life company, I decided to take the loan. And last, I got a dividend already this year for that policy. It was $2,600. On that little policy. There's only two sources of income, people at work. So you can be at work. That's way we can earn. You can earn income. And the other one is money at work. When you get paid for your work, you put all your money into the bank. That's kind of the way we're wired. So someone else gets all your money, they put it to work for the owners of the bank. That's why I try to get my money out of my account and into somewhere I can control. I don't want it working for someone else, I want it working for me. This is what most people are doing out there. They're doing all the work and someone else is getting all their money. You may or may not have seen this little diagram before. So this would be someone like you deposit the money into a bank. So you put it in and the bank promises you to give you some interest rate. Well, they take that money, they don't let it sit still and they put it to work, they lend it out here, then the money comes back. Might not be to that bank, but there's only one pool of money in the world and it all flows. And then they lend it to someone else and it comes back and it keeps on going around, around. And while they do that, they keeping that money in motion and they're making more profits for the owners of the bank and your return is much less. So you want to do it on the you and me level. You want to replicate becoming your own banker and using this process. It's really simple, just things you'd like to know more about. And I'm going to encourage you to go over to our YouTube channel now. Just take the opportunity you have and go. There is over 800 videos and the other one is our podcast channel. Now you can catch our podcast on wherever you listen to your podcast, whether Spotify or whatever it may be. Or you can go through our YouTube channel for wealth at O Bay street and catch the replays the videos there. So there's over 300 videos on our podcast channel. So there's all kinds of ways for you to learn if you're not already connected with one of my colleagues, you got an opportunity. Not simply you can just click that or you can just text the word schedule to 780-809-4599. Just reserve a time. It's pretty harmless. So what is the infinite banking concept? The whole idea is to recapture the interest that one is paying to banks and financial companies for the things that you need in life. And he actually says in his book the major things you need in life. It's not about investments of any kind, it's about how one finances the things of life. And it certainly include investments. It's not about rates of return. As time goes by, interest rates go up and interest rates go down. But the process of banking goes on no matter what. So here's a question. How much of it do you control as it relates to your needs? It's not a procedure to get rich quick. When I've learned anything worthwhile doing takes time and effort to do it well. This is something you want to be committed to doing over time. It requires long range planning. It's nothing more than like minded people contracting with one another to solve a financial problem. Contract we use is called participating dividend paying whole life insurance. Why do we use that contract? Well, the answer is pretty straightforward. It's the best one for the job. We're going to take a look at practicing the infinite banking concept at the you and me level. It's the tale of two trucks. Well, this is one I bought back in 2011. It just happened to be a 20113500 crew cab, had the diesel engine in it, everything built to pull because I had a huge rv. And that's what I bought that truck for back in 2011. I paid $65,363.61 a truck like that. Today it's going to be over $100,000. How do you think I purchased it? There's cash to buy that truck. So how much did it really cost me? Since the time I bought that truck back in 2011 up until today, it's been 12 years. So even if I took that $65,000 that I paid in cash and I got a 3% rate of return, well, I know I can get a 3% rate of return over that period of time. Well, as you can see, the interest that I could earn was $28,282,000. That's the cost of opportunity that I've lost by spending that money in that truck because I don't have that money anymore. I don't have the truck anymore either. But it depreciated. That was the cost to me and my family in the last 12 years of that decision to spend $65,000 on that truck. And what happens if I look at the potential? I'm going to give up my rest of my life. Well, it's going to be more than this. I'm not going to die in 35 years from 2011. But this is. I based this on my father's passing. So he passed it at an age of 89. So I just used that. And so if same scenario that many years would have been 35 years. If I, when I get to be 89, I'm going to live past that. Never want to think you're going to die. But that's just an indicator of how much interest I could have earned out of that 65,000 121,000. That's the opportunity cost that's lost. So a lot of people don't think about that. I want you to think about what it cost me to save. That $65,000 wasn't only money. It was time. And what did I do? Shortly after I paid cash for that truck, what do you think I did? I started to save for my next one. Then in 2013, I heard about becoming your own banker. Once I learned a little more, I got angry. Well, I started to realize all this money that had been flowing through my hands and how little of it I was keeping. Nelson always said it all begins with the way you think. What I did, I took action. Both my wife and myself, we applied for our first policies. We redirected the money we were saving for things like our next truck into our policies as premium. Now we jump forward to 2020. We traded off to 2011 on a 2020 model purchase price. After the trade in $30,219. How do you think I purchased it this time? A policy loan. So let's just go and take a little look at what that truck purchase looked like. So I took a policy loan because I could. And in that particular policy, my daily cash value growth was $25 a day. The daily interest charged by the life company at that time was 6.2%. So when you calculate, don't take 30,000 times it by 6.2%, that works out to $5.10 a day. This one I started in 2014 and it started with $375,000 death benefit. And each year as I pay my premiums at death benefit climbs. I paid the premiums for this year. So everything's current on here. So you can see now after my last premium payments, now up to $31.78. You see how it changes over time. In 2020, when I took that loan with $25, but the Life Company had a smaller number, death benefit was only $479,000. And they had more years to grow that cash value to equal the death benefit. So they didn't need to grow it at any higher rate than $25 a day. Well, jump ahead to 2023. My death benefit is now up to 545,000 in that policy. And the life company has to grow the daily cash value at a higher rate because they got a higher target and less time to get there. So that's how that particular product works. So I just wanted to go through that re emphasize it, help you to see what that policy that I used for this particular truck looked like back in 2020 and what it looks like today. So let's go through and just review how my wife and I dealt with that policy. So we took it out. We decided to pay it back at $500 a month. That worked with our cash flow. We set the amortization period. Every month on the 30th, we send $500 as a policy loan repayment to the Life Company for that policy to repay that policy loan that we have on that truck. So it's going to take us six years or 72 months to pay off the loan. That's our amortization plan. That's what we put in. We're going to follow it. Now here's something I want you to realize. We talked about this. I just did. We set the amortization. Now we decided we're going to pay it back $500. Could have been $300, could have been 700. Tell me if that's not total and absolute control. Going to look at a bit of an example what the first month payment looked like. So on that first month, when we sent back our $500 to the Life company, remember that particular time, our cash value was growing at $25 a day. So $25 a day times 30 days. And then you got to deduct the interest cost that was going to the life company. So at the end of the first month, after I paid back $500, when you think about the cash value growth net of the interest, I could have accessed $1,097. Pay back $500, access 1,097. Where else can you do that? That's the process of banking. So how did that turn out for us? Do you think it got better every month thereafter? The principal amount pulled goes down every month. Some of us go in to pay the principal down. So principal goes down, interest cost volume goes down for that period of time. So more of what you pay goes to pay the principal down. So every month it gets better. And when you think about 2023 now, well, my daily cash value growth is a lot better than $25. It's now $31.28. So is my family doing better than I was back in 2022 just using this process? And what's direction is the money flowing A truck payment flowing towards my policy, my family banking system? Using the infinite banking concept and recapturing your interest is like walking forward on a moving walkway. Have you ever been in the airport and hopped on one of those moving walkways? So we're going to look at a couple of things here. One is the person paying cash and the person using this process, how it works. So I'm going to use this little example. So this person here is paying cash. This one here is using the infinite banking concept to recapture the interest they're paying over time. This person's always going to get ahead of the person paying cash. So that's what I really wanted you to understand from that little example of the two trucks. Yeah, you can pay cash for a vehicle or whatever else and you achieve your objective. What, is there a better way? I hope you see that there is. Just with that little example that I showed you on how you can use the infinite banking concept to help you and your family get ahead financially. That's exactly what that was, just an example of banking at the you and me level. So I just want to go through about four good financial rules to live by. First one is pay yourself first. The next rule is control your spending. Because without this one, the first one doesn't work. Number three, put your money to work. Put your money somewhere where it's safe. That's the last one. My family banking principles. So here what I'm going to go through with you now, it's just those principles. So the first one I have is passive income. So I lend money to my family. These are my daughters. This one, this one, this one, this is my son. There's some of the best lenders that I've got. They lent money, things for things like cars and. Yeah, so they sign a contract, we agree to the terms and they pay it back as per the terms. So I do private lending to my family and I do private lending to third parties. So that's how I'm generating passive income one way. But the other one that happens every day is the daily cash value growth from our policies. So right now that's presently over $3,600 a month. And it gets, and it's getting better each and every year that we pay our premiums, that's going to keep on getting better for us. Those are one of my principles. Do things that are going to create passive income to help support myself and my family and our family wealth. The next principle is wealth transfer. Glad that I didn't wait after I heard about it and I started doing something about it because I started to build a way to transfer wealth to the next generation. And it's not all going to be in dollars and cents. It's going to be in knowledge. So I'm working with my kids and my grandkids to help them understand this concept. So these three boys are my grandsons. And going back to Scriptures, Proverbs 13:22, Good man leaves an inheritance to his children's children. These are kind of the focus points when we think about wealth generation, one generation to the next. And so I'm a real believer that that's something I want to do and should do. So presently when I look at our death benefit, being my wife and myself, that's what we have built it up. And again, it's like everything else that we're doing in this, it keeps getting more, it keeps growing each year. So we're building a death benefit to help support the wealth transfer to the next generation. And one of the other things, so our oldest grandson, he's in third year nursing at the U. Of S. And so part of that wealth transfer, he doesn't know it, is that he's been borrowing money to help with his education. So that's one of the things we're going to use the wealth that we accumulated to help him later in life as he gets through school and all those good things. So lots of different things we're doing, but that's a principle, wealth generation. And it's not just money, it's education. That's knowledge. The third one comes right out of the book. It's to recapture the interest that we're paying to banks. You've seen one example out of what we're doing. So we've been using our family banking system to purchase things like cars, trucks, RVs, a house. And when I looked at it the other day, we flowed over 500,000 through our policies in the nine plus years that we've had of them. Just getting more and more traction as we go. So we're using our system. We don't just have our policies, we put them to work and they're working for us and they're making a difference to me and to my family. So those are the principles that we have. And every financial decision that should be made by you, your family, need to be guided by principles. Your principles will probably be different than mine, but what I'm going to encourage you to do is base them on laws and rules that have been demonstrated to work over time. How long should you pay premiums into your policy? Back in 2014 I met this man before that. I read his book and that book and this man changed my life. So I thought, well as I was thinking about this question, wonder what he would do and what he taught. I thought, okay, if I'm going to answer this question for everybody, let's start with the founder of the infinite banking concept and what he did. He bought his first whole life insurance policy at the age of 13. He didn't even know about the infinite banking concept at that point. Once he started to understand the power of dividend paying whole life, he paid the premiums in his policy. The policies that he owned until he graduated from life. You know, one of the things that I've taken on myself, he is a mentor for me. That's one of the things I'm going to focus on paying my premiums for as long as I can. What did he teach and what Nelson described in his book called building your warehouse wealth. Most people just don't look at the performance of a dividend paying whole life insurance policy over a long enough period of time. After all, they're engineered to get better every day. As long as the policy is in force. The earlier one starts, the longer one continues, the better the policy gets. I thought, well that's really clear. How long should you pay it? Here's what happened to me this year I started to get my old age security checks. I also opted to take my cpp. I wanted to calculate when should I take my CPP and when I old age security. And every time I did it I couldn't put in one number. I needed to help me with that answer, not was when was it going to die. So I wanted to get as much of that money as quick as I could. So I started to take it and what do you think I'm doing with that money? Because it's money I didn't get last year. Well, I'm using those to fund premiums, so that's one of the choices I made. So what do you think? If you're doing this, how long you think you should pay premium? Well, here's something you need to know. You'll be in control. So you get to decide. What did Nelson say again? It all begins with the way you think. So if you are here, you're wondering, what would this look like for me? I should encourage you again, click the link or text the word schedule to 780-809-4599. Just reserve a time that works for you. What will it look like? Or you're going to get a one on one conversation with one of the authorized infinite banking experts here at Ascendant Financial. You're going to get a clarity meeting. And then, you know, you might be thinking, okay, but this all sounds great, but I don't want to do this alone. Well, we don't leave people hanging. We continue to coach them. One of the things that we do is quarterly group coaching sessions. Those are great opportunities for people to mingle with someone else who's already practicing this concept and put that to use in their life. A lifetime mentoring and quarterly group coaching sessions. Sometimes we have clients that participate and add value. So you could do that for all of us. I just want to encourage you again, there's all kinds of great resources available to you. Our YouTube channels are phenomenal. We got all kinds of books that are just great ways for you to understand more about this concept. So take advantage of podcasts, YouTube. You know, it's just there for you.

What is the cost to set it up? You decide what you want to start to capitalize your system and put premiums into it. That's what it is. So it's not for us to decide something. You need to decide what is it that works for you and your family. So you want to start somewhere that's meaningful? No, you get to decide that number.

How long does it take to set it up? Generally speaking, I'll tell people you can expect a policy approval, assuming the policy gets approved, somewhere between four and six weeks, but it certainly can take a lot longer depending on your health history and things like that. And it can happen a lot quicker. So there's no guarantee in terms of how long it takes to set up a policy.

Dan, do you dedicate one policy to your private lending and depending on what.

Kind of opportunity comes along. But sometimes I'll do that where I'll just take and Pick a policy and designate it for one purpose. But I will definitely use same policy for multiple uses.

At what point does it become too expensive, not profitable to borrow against your cash value? I wonder if a banker's ever asked himself that question.

Yeah, yeah.

What if you lend a lot of money out there, what happens? Well, we end up making a lot of profit. Oh great. We should lend everything that we have and fractionalize it even more 10 times over. So right. There is never expensive to borrow money from your policy, but it's certainly going to be expensive to use someone else's pile of capital or to use your cash. If you're using your banking system, you're always going to come out ahead financially because you're going to recapture the interest and you're going to recapture the stream of payments while still compounding your wealth called cash values every single day and create a legacy called death benefit simultaneously. Yeah, there is one on multiple policies. Is that an advantage?

Money grows on branches.

So when banks become profitable, what do they do? They expand, they open more branches. So money grows on branches. Right. So no different than how banks open multiple branches so that they can lend more money out. Yes. When your policy that you start with becomes profitable, we have the implementation, the process of becoming a banker and you recapture a lot of money. And that policy doesn't accommodate all that money again because it's all full. Then you're going to open another policy. It's going to happen. It happens all the time. Clients who stop at one single policy before the end of the first policy year, they end up expanding their program. It happens all the time. One policy just cannot get the job done. While if you have one policy, it's going to take a lot of time to get the job done. Hence you got to expand your program.

Is it worth using a T1213 form for salary employees to withhold tax at the source and so you can put more income into a policy before tax time. A couple of implementation issues just to be mindful of is if your employer allows you to do that, there's still going to be some form of funds going to it. But if it executes and it works, you're already thinking way ahead. It's awesome.

Does anyone in the team claim the interest of funds borrowed when invest?

I'm not anybody here for claiming that as an expense?

No.

I don't know.

You know, I want to keep things private. I want to recapture the money anyways.

Lots of places to get tax deductions. I don't want them in my own private system.

So in your experience of having to do this for 10 years, if you can go back and change one thing about ibc, how you started, how you did, like what one advice you would give to anybody, learning from your own experience of, of being a banker. Because the best way to become a good banker is learning how to become a bad one.

When I think about that, what would I change? I would have started bigger because I could have and then I would have started looking for more opportunities to grow my money quicker than I did. So those are the two things I would have changed.

Like use policy loans for more like.

Passive income investments like, and it's like life, right? As you go through it, you're going to learn. And I'm still learning at this. So I still see things I didn't see. But always in hindsight you go back and you say, okay, I could have done that quicker than I did. So too often I left too much of the cash value add available. Not working hard enough for my family.

We talk about the family banking system, the family banking method. So may I ask you to share.

How did you introduce this to your.

Kids that this process and got them on board? Because this is one of the most frequently asked question that comes up from a client.

What I did is I told them what I was doing, you know, basically went through the whole gan. I'm like, I changed, you know, I just went through doing the whole wheel, all those pieces as far as trying to get things in place for the future and then sit down and talk to them about what, why I'm doing it and what I'm doing and started introducing it to them. So different results with different children. Some have been much more open, some have been more open to just using the family banking with the contracts we have in place versus really getting after it to the way they should. A lot of times if you can show somebody it makes real difference, that's what I found. And the more time I get doing this and the more, you know, I learn that I can share with them, the better it helps them understand the opportunities and it still goes back to the same principles.