Keep Your Wealth by Taking Control of Your Money

If you take control of the banking function as it relates to your needs and you've got the money flowing back to the family, is that going to change the trajectory of your children's lives? Could it maybe, could it maybe expand or amplify their ambitions and their, their, their dreams, their desires to want to start a business, buy a business, pursue a degree, pursue a noble profession?

Really important story, Nelson, he says that he really didn't have very good selection of ancestors because many of his family members died early.

He ended up being the longest living member of the family. And in his early 50s, he had to get his heart replumbed in four different places. So he was on the operating table and they actually had to remove his heart from his chest cavity. How was he being kept alive? Any guesses? Yes, Heart and lung machine. Thank you. That's exactly right. So he, when he described this experience, he said, you know, I know that I was being kept alive, but I wasn't really alive. I was only existing.

It was the heart and lung machine that was keeping me alive. I want you to think about this. So he said, most people not only abdicate the responsibility of the banking function in their life, but they also abdicate the opportunity of taking control of the banking function. That's the equivalent of living off of a heart and lung machine. Someone, someone else, some other organization is keeping you alive financially. So he just wants you to think, because the moment they put his heart back into his chest cavity, he ended up living a lot longer than what he may have otherwise lived. Had a great life. He was doing exactly what I'm doing today, right up to his 88th year.

88Th year. And sadly we lost him in March of 2019. And how many of you have seen the documentary film that I had commissioned on Nelson? Thank you from the bottom of my heart for watching it. That's a labor of love. If you haven't seen it, if you just visit nelsonnashfilm.com that's nelsonnashfilm.com it's a one hour documentary and Nelson was able to screen that before he passed away. We screened it in February of 2019, then he passed away in March. I spoke to him two weeks before he passed and he said to me, I want you to remember that this is all about the message, not the man. That was a very poignant moment for me with him because.

I always will express my gratitude for him. But he said, make sure that people understand that this is about the message, not our Nelson Nash. That just goes to show you the level of humility that he had. And he was quite modest.

In how he described his own use of the concept.

This is a gentleman who financed airplanes. To give you a sense of.

What he did, he met with another prominent attorney in Birmingham. And he was trying to convince the lawyer. He was trying to convince the lawyer, you need to do this.

What he didn't realize at that time is that the message, the process is more caught than. Than it is taught. So the attorney was just not budging. So Nelson said, I just decided in that moment that I wasn't going to try to convince anyone any longer. So he got up from that meeting with the attorney, and he was packing his things and leaving the room. And the attorney said, wait, wait, wait, Mr. Nash, hang on a second.

I heard that you do private lending.

Is that true? And Nelson said, well, yes, sir, it is. So he financed an airplane for that attorney. And I'll give you one guess what he did with the stream of payments that he was receiving from that lawyer every single month.

No. He ended up purchasing the very thing that he was asking the lawyer to buy. The dividend paying, participating, whole life policy. He expanded his own family banking system. So whose wealth grew?

His family. So he ended up buying exactly what he was trying to convince the lawyer to buy.

So if you feel personally that you're feeling compelled or you're feeling drawn to convince somebody, I would just encourage you to just give the person an opportunity to catch it. Let them read the book, let them consume the YouTube content. None of that was available when Nelson first got started. We post two new videos to our YouTube channel every day. We release a new podcast episode every Wednesday. There is no shortage of on demand content. So just point someone in the direction of the knowledge and then get out of their way. Let them find it. We get contacted from people all the time. Jason, it's Bill here. Do you remember that boot camp I attended back in November of 2014?

See if I can go back to that, because we see hundreds of people every year. No, I don't. I don't quite remember you, Bill. Well, I'm just calling you because I'm ready to get started. Now, what tipped the domino?

I caught it. Okay, good. We're here to help you. So nobody here is going to pressure you or try and back you into a corner to do anything. Once you catch this, you'll know exactly what to do. I promise you. What are some forms of income?

Employment income. So, T4 income. Pardon me? RSP. So, retirement income. What else?

Yes. Investment income. Thank you. What Else, Passive income, interest income. Pardon me, real estate, rental income. So investment income. Okay. Disability. Yes. Now, all of that income.

Flows through the books of someone else's bank.

And then while you perceive that money to be sitting there waiting for you to pay your bills or take care of your overhead expenses, corporately or personally.

Do you believe for a moment that that money's sitting still?

What do you think's happening with that? Yeah, the money's being multiplied, it's being lent. But here's. So for folks who are. If you're still processing this, take a $20 bill, write your name on it, go to your local branch, deposit it, go back to the bank the very next day and request a withdrawal for $20. Are you going to get the bill back that has your name on it? If you do buy a lotto ticket?

The key teaching point here is that all of that money is flowing through the books of someone else's bank. And it's a permanent transfer of money away from you, away.

And when you pay the bills, you take care of all of your personal financial overhead. Can you ever earn interest on any of that money ever again?

Can the next generation earn interest on any of that money ever again?

If you take control of the banking function as it relates to your needs and you've got the money flowing back to the family, is that going to change the trajectory of your children's lives? Could it maybe. Could it maybe expand or amplify their ambitions and their dreams, their desires to want to start a business, buy a business, pursue a degree, pursue a noble profession?

Is taking control of the banking function in any way spoiling your children?

If it is, then you need to go and you need to complain to the bank.

You're controlling this banking function as it relates to my kids, and you're spoiling them.

It has nothing to do with that.

It's all about who's in a position of total and absolute control.

We share with our own children.

That when you need money. Now, Our oldest is 13.

He accessed and repaid his first policy loan when he was 11.

Kids understand this. Kids have a much higher degree neuroplasticity than adults do. What we share with our children is that when you need access to money, we don't want you to go to someone else's system. We want you to come to the family. So we're teaching them from a very early age to think about keeping the money in the family. Isn't that good? They're gonna need the use of it anyway. How much of the banking function. Do you control as it relates to your needs? That's the real issue. We talked about there only being one pool of money.

Let's get to a very, very important teaching moment.

Nelson shared in his book.

He expressed.

The importance of understanding the characters in the financial play.

And he would say that for most people.

They don't understand that there's even really a play going on.

On page 32 of his book. If everybody has Nelson's book, you should all have a copy. If you flip through to page 32.

Nelson wrote, this explains what I mean when I say that most people know there is a play going on out in the world, but they don't understand it. Worse than that, they can't get the characters in the play straight. Recalling that Shakespeare said, all the world is a stage and the people are actors. They're on. People just don't play their proper role in the scheme of things. They have abdicated their opportunity and responsibility as it pertains to the banking function in the economy, they are depending on someone else to perform that job. And that character in the play is making most of the money. Rightly so. Because of the golden rule, those who have the gold make all the rules. So here are the four characters in the financial play. You've got the depositor, which all of you, all of you currently fulfill. That character in the financial play, you deposit money either directly or indirectly. If you earn a T4 income, or if money gets automatically deposited into your account, or if you walk into your branch and deposit that $20 bill with your name on it, you're a depositor. So you're one of the four characters in the financial play. Simple enough. The second character in the play is the borrower. That character is the character that makes this entire financial system work. Without the borrower, nothing else works. And banks cannot lend money into existence unless they have depositors leaving money. The bank.

So we've covered the depositor and the borrower. You are both of those characters in the financial play.

When you begin to practice this process, either personally or in your business, you will also become the banker and the bank owner. I'll describe to you what I mean.

The banker is the character who gets to decide who gains access to someone else's money. And the banker sets the rules and establishes the terms. Hey, if you want to take out a mortgage for that piece of investment real estate, you need to go through a qualification process. If you successfully get through the qualification process and we offer you the loan, who controls the repayment schedule? The banker.

Who Sets the rate. The banker.

The fourth character in the financial play is the bank owner. The bank owner capitalized the bank and purchased share capital in the bank. So the bank owner has an expectation of sharing in the surplus, the profits generated by the bank.

So if you are only two of the four characters in the financial play, you're not in a position of total control.

But when you have a policy in place personally, you have a policy in place corporately, you create a system of policies for your family. Incrementally and gradually over a period of time.

The moment that that first policy is created, you begin to take control. You're the depositor because you're paying premium.

You're the borrower because you're accessing policy loans, money that's available on demand, on your terms. You're the banker because you call the shots. You know, when you request a policy loan from the life insurance company, they ask you, would you like the money electronically deposited or should we mail you a check?

How many of you would be frustrated with that experience?

The loans are not reported to TransUnion and they're not reported to Equifax.

So are you maintaining privacy? Are you on the government's radar? Private contract. The policy is a contract. It's a unilateral, binding contract. It's private.

You're in control. The moment that your first policy or second policy for some of you, third policy for some of you, the moment that that's put into place, you become a co owner of the life insurance company. I say that again, you become a co owner of the life insurance company. So when the life insurance company creates a divisible surplus profit.

Which character in the play gets to participate in that?

And the insurance company distributes that profit to the participating policyholders in the form of dividends.

Now, is that a dividend that you would want to pay tax on? Show of hands.

Are those dividends that you want rolling back into your system without triggering a taxable event? Show of hands. There you go. Keep taxes away from the accumulation and keep taxes away from the access Keep taxes away from the accumulation of your capital and keep taxes away from the access of your capital.