How To WIN By Paying Interest in Canada

We do. We have to go back to Mr. Banker, hat in hand, and beg them for the opportunity to access some of their money. Maybe we have to put up some collateral or that kind of thing. Again, we're always playing by their rules because he or she who has the gold makes the rules and the banker has the gold. So they're going to tell us what hoops we have to jump through if we want to access money from them.

Hello and welcome. My name is Vernon McCarty, and I am a member of the Ascendant Financial team. I'm really blessed beyond the definition of good fortune to be able to coach good people like you every single day on the process of becoming your own banker. And today, the title of our discussion is how to Benefit from Paying Interest. No, you don't have to check your sound audio. You're not crazy. You actually heard me say how to benefit from paying interest. So I'm excited to share this with you. It's one of my favorite topics. You can learn a lot more about what I'm talking about here in that book behind me, Becoming youg Own Banker, written by our great mentor, R. Nelson Nash. Nelson Nash taught us that everything begins with the way that we think. And, you know, we're constantly being bombarded with different information, different financial products, interest rates, all these different things. And, you know, sometimes we don't know what to think. So it's all about thinking and rethinking our thinking and following the money. So let's talk about this a little bit. Oh, by the way, if at any point during this discussion you feel yourself thinking, gosh, Vern, I'd like to hear more about what it is that you're talking about. I want to know how I can benefit from paying interest. I want to learn how to become my own banker. Click the link in the description below and it'll take you to our bookstore where you can obtain a copy of Nelson's book. Okay. We sell it for less and we ship it anywhere in Canada. All right, great. So that's the big sales pitch for you. All right. How do we benefit from paying interest? Because we've been taught our entire lives that paying interest is bad, right? Borrowing money from other people and then paying interest to them, you know, that's not good for us. Now, I would wholeheartedly agree with that. Now, the reason for that, though, is because it's all about who's in control, who's getting the money, and who is that money being put to work for, and how much of that money I'LL add to that. How much of that money can you reuse? So all we can do is compare what I'm going to talk to you about today and the process of becoming your own banker with what we're already doing financially today. So how do most people end up paying interest? Well, it's called banking. So again, we get paid, the money lands in the bank account. Generally, we're going to withdraw all that money and start paying for our bills and the things that we need to pay for to live our life. We all have the need for the use of money, thus we. We all have the need for the use of banking. So once the money is depleted and drawn down because you've been spending cash on the things that you need to spend cash on, you know what happens? Well, life happens. A large expense is going to show up. You need to repair the furnace or something happens to the vehicle, or you need a new vehicle, or you could be unlucky like me, and you can get blasted by a hailstorm. And you need an influx of cash to deal with some of those problems. So we need a large amount of cash for something, some life event. Or maybe it's not a bad thing. Maybe it's an opportunity. Maybe somebody says, hey, I've got this great investment and you need a certain amount of cash to take advantage of the investment opportunity. Generally speaking, when these types of things come up, most people don't have a big access to cash. They don't have a pool of financial value because they've been taught to put their money in financial prisons. Things like RRSPs and pension plans and real estate and all the rest of it. I'm not saying any of those things are necessarily bad. I'm just saying that once they're in those vehicles, it's sometimes very difficult to get the capital out.

To take advantage of other opportunities without some kind of a penalty or losing growth or all the rest of it. Right. So what do we do? We have to go back to Mr. Banker, hat in hand and beg them for the opportunity to access some of their money. Maybe we have to put up some collateral or that kind of thing. Again, we're always playing by their rules because he or she who has the gold makes the rules and the banker has the gold. So they're going to tell us what hoops we have to jump through if we want to access money from them. And so now they're going to dictate the terms of the repayment schedule on that, and there's going to be an interest associated with it. Now I have to now send money to the, to the bank. They're the ones getting the money. They have all the control. And that money is being put to work for the shareholders of the bank, not for you and I. Right. And now when I'm paying interest, I'm certainly not benefiting from that because I can't even re. Access that money. I can't even use that money that I'm paying on interest to the, to the bank. I. And then again, that money's being put to work for the shareholders of the bank. So let's contrast that with the process of becoming your own banker. Now, in Nelson's book, he describes banking by using a grocery store example.

To explain the process of banking. The reason why Nelson uses a grocery store. A lot of times people think, why are we talking about a grocery store if we want to talk about banking? Well, he wanted to use an example where you're both a consumer and distributor of the product. Well, we all need groceries. We all need food for a living. It's kind of part of being human. And we also all need capital. We all need money. We all have the need for the use of money. And, you know, so the way that money is distributed in the world is by the process of banking. The process of banking. We're not talking about a product here. We're talking about a process. How do we get food? Generally speaking, most people, they go to the grocery store and access their food. So the whole point that Nelson's making is if you owned your own grocery store, you would never be caught shopping for groceries down at the local grocery store down the street. Imagine you and I were business partners for a moment. Imagine we owned a grocery store business in my home. My wife happens to. I'm blessed beyond, you know, again, definition of good words or good, good fortune that my wife actually does the grocery shopping. She does the grocery shopping in our house. Now, if you and I were business partners and you found out for the last four years my wife has been shopping for groceries at someone else's grocery store, you're probably not going to be too happy with me, are you? You and I are going to have words, and it isn't going to be a pretty conversation. Why? Well, because that money needs to be pumped back into our grocery store to create more profit for our business so we can buy more inventory to sell to more customers to again, so that we have a profitable business that we can sell so that we can one day retire or enjoy passive income time. Right. Well, how does that relate to banking. Well, if I want to become my own banker, this is how I'm going to start benefiting from paying interest. Now by now, if you're watching this video, you probably know that we're using a tool called a permanent participating dividend paying whole life policy. It's really just a tool. It's the tool that we use to implement the process of becoming your own banker. You can practice banking with a shoebox, but I don't know about you, but I'm pretty sure a shoebox is not a very secure place to store your capital. It's not a very good savings vehicle. Can we agree on that? Okay, great. Now the best tool that we've been able to find for the process of becoming your own banker is a permanent participating dividend paying whole life policy. Right? So we're using this tool now. This tool is we want to do our very best to place the business or purchase the policy from what's called a mutual insurance company. Okay? There's nothing wrong with stock companies. I own policies with stock companies as well. And like Nelson would say, you do the best you can with whatever you've got. So if you have a whole life policy with a mutual company right now, or if, or excuse me, with a stock company, or the only policy we can obtain is with a stock company, then so be it. Still a great tool. It still has all the same contractual guarantees. The only difference between the mutual company and the stock company really is that the stock company has shareholders and they have policyholders. And the pecking order by which their service.

The stockholder comes above the shareholder, or excuse me, the stockholder comes above the policyholder. Excuse me. Whereas with a mutual company they have no shareholders, they have zero shareholder interest, they are owned 100% solely by the policyholders. Okay, so let's think about a mutual company for a moment. If I own this legally binding contract with the mutual insurance company, that actually makes me a co owner in the life insurance business. That means I'm eligible to receive dividends and on an annual basis based on the profit of the company, I get to get to take advantage of receiving a share of the divisible profit in the form of a dividend. But now if I co own the business, as I'm paying premium into that business, it's building up cash value within my policy system as I'm making deposits. That's what my premium really is, is deposits. I'm depositing money with that life insurance company rather than depositing money with the commercial bank. See, I'M storing capital with the insurance company. The insurance company is going to take that money and they're going to put it to work in various ways to create profit. Well, who are they creating profit for? They're creating profit for me and all of the other policyholders that own the business. Do you see where I'm starting to tie this together with the grocery store? I co own the life insurance company and the life insurance policy serves as my tool to facilitate the banking process. In other words, how I access and distribute capital as it relates to my family's needs, just like I would if I owned my own grocery store. So now as I'm building up the cash value in my policy, what I can do is I can start accessing policy loans. And as soon as somebody hears the word loan, they go, oh, alone. That must mean there's a qualification. You know, I got to do an income verification, I got to do a credit check, I got to agree to repayment terms. And oh gosh, the scariest word, I got to pay interest. Well, let's talk about that. First of all, I co own the business and I am the one who is the sole owner of the policy contract. And the life insurance company is on the hook to fulfill all of the contractual guarantees. So I'm actually the boss and they work for me. So if I own the policy, that is the bank, I set all the terms. So that means there's no income verification, there's no credit check, and I don't have to agree to repayment schedule. Now we want to be a responsible banker and we want to set up our own payment schedule. We set up our own payment schedule because I own the bank and I get to set the terms of the repayment schedule. Okay, so are you with me so far? Awesome. So now I've got the cash, I'm going to use it for whatever I use it for. And now. Yeah. Is the insurance company going to charge me interest? Well, they better because if they're going to lend money to me, that means that that money is not being put to work within the insurance company and they have a responsibility to create a profit for me and all of the other policyholders. So again, if we were in business together and you borrowed money from our business, would you and I agree to let you borrow the money from the business for free? The business? The money's no longer in our business. Working for the company to create more profit, you've taken it out of the company. So you bet A smart business owner would charge interest even if I Owned the company. I'm going to charge myself interest for borrowing that money. So it's the same thing with the insurance company. If I borrow money from the insurance company using my cash value as collateral. Now my capital is growing inside the policy system every single day uninterrupted. I get to access the money to do things with it in the real world. And the insurance company is going to charge me an interest rate and I don't care what the interest rate is because here's what I want to break down for you. If I'm paying interest back to a business that I co own, well, who's getting the money? I am. Who's that money being put to work for? It's being put to work for me. How much of that interest can I reuse? 100% of it. Okay. So I'm not losing anything. I'm just pumping more money back into a business that I co own and they're just putting that money to work to create more profit for me and all of the other policyholders. I e shopping at my own grocery store. If I had my own grocery store, I would never shop at somebody else's grocery store. If I had my own banking system, I would never go and access money or store capital in someone else's bank. I would never put my money to work in someone else's bank. Would you? I don't think so. Okay, awesome. So that is how we can benefit from paying interest. I don't care how much the insurance company charges me. The more interest they charge me, the more money I'm pumping back into the insurance company to put to work to grow profit for me and the more capital I can re access from my policy system. So that is how you benefit from paying interest. I hope you found this video really valuable. Please hit the like button. Subscribe to our channel. Share this with your friends because don't keep it a secret. You know, if you have some information that somebody would find valuable, please go ahead and share it with them.