Nelson Nash: Equipment Financing, Demons and Aliens (28 of 30)

Now, there's something else about this mark. I want you to look at the outlay column. The last year he was paying premiums. What do you see there? 160 total. And the net cash value? Well, I went to my line 36. He's 65. Oh, sorry, Mr. 65. What did he pay that year?

Somebody say 79?

Well, what should he be paying, Bob? He should be paying 108. To be honest, he's taking fees out the back door. Right, Nate? Yep. Well, why is he only paying 90, 79,000?

The loan's extinguished. There's nothing more you can put in. And it's maxed out.

Policy won't hold any more money. Policy won't hold any more. Why pay up at 65? It's a lot of paper at 65. You can't put any more money into it. All you can do is just pay off the balance. There, that was all.

Well, that's taking thieves out the back door, ain't it? Leaving.

So we need to buy another policy. Oh, God.

Amen.

How wonderful.

We have exercised the demons.

What was that, Jason? I said we have exorcised the demons.

When did that record? His.

Record. He's been trying to get that through my head for years.

I heard you say yesterday when we were first kicking off that you needed to learn some things about the illustration.

Is this a good time for me to ask you to tell me? You probably. You need a coach. I know all this, but I don't understand it.

I just listen to Richard, okay? You give me all the answers. I don't have to find them.

I'm not.

Alright, you said it. You made it. Knowledge is not understanding. Specifically, you had a question. Did you or did you?

Yeah, I mean, I was leaning more towards, you know, page 48, page 49, about expanding to encompass all income.

Oh, okay. We'll get there then. All right, we'll get there. I just want to make sure that it wasn't in this section yet because this is the only section in my book that I use loans. That is all. This is the way I would always have somebody do it if I were in the insurance business.

I do have a question. Now that you brought it up though, you're. Maybe I'm early because you're probably about to get to it right now. And I remember the last time I had you go through this with me for illustration 6 and think, you know, challenging your thinking. And that's really why you put this in here as an addendum. Are you going to go through that next.

Well, why not? This is a good time to do it.

I think it is.

Okay.

So there's questions that come out there in people's minds about these illustrations are old and stuff like that. Interest rates aren't that good. Well, look, tell me please, when interest goes down, what happens to the value of a bond? It goes up. Why?

Why? The criteria of a bond is yield.

All right? So if you go and get that same yield and interest rates are low, then it takes more capital times this interest rate to produce this yield. That's right. Now when interest rates go up, what happens to the value of a bond? Goes down. Goes down because it doesn't take as much money times this interest rate to produce that yield. Well, what are we putting in this policy to get it going, please? Premium oil. How many years? Four. Well, what would be wrong with five years instead of four? Nothing. Nothing. More capital, that's all. The more capital you put in, the stronger. So I said in answer to those people that having trouble thinking that thing through, let's demonstrate this thing. Ill shucks, let's capitalize this thing five years. And so that's in illustration five on page 62. Now interest rates are down and all that sort of stuff. Big deal. But when he does that same financing, there of the.

Illustration two is what we're working from. I'm making a comparison here with five years of capitalizing the policy in illustration two with five, four years in the illustration of. Oh, back there, you know, first.

First truck. First truck that I illustrated. We capitalized it four years. Here is the same criteria, financing one truck where we capitalize in five years. That's all. Okay? Now when we do that, we get down there to age 65, they cash value it up. Didn't you? 3.5. No, don't, don't. I'm sorry, Richard. You messed up my mind.

I haven't gone through history in a while. This is comparison with illustration four of five, rather five and six. Yeah. Okay. And so in illustration five.

2.5 million at age 65. Now 3.5 million at age 65. Well, what is when you capitalize.

At five years at a lower dividend scale, so forth? 3.5 million.

Well, does this make sense? But what the life insurance agents.

What do they conclude when they see these? All these things, oh, say your numbers are not valid. Whatnot.

Somebody doesn't understand about creative business, do they? The more you capitalize the business, the stronger it is. Good grief.

Anybody knows that. Why would anybody reluctant to pay a premium? Well, Let me ask you another question. Mary's got a premium due when we get back. Whatnot. It's $7,000. And when we pay that premium, what happens in the cash values and death benefit? Oh, the defend is about $7,000 themselves.

Now, why would it be reluctant to pay another premium?

But that's not the mindset that prevails out there, is it?

Page 85 point number two.

Yeah. Okay. People struggle with the cost and where they're going to get.

At that time. At that time? Yeah.

The government will give it to you. Social Security.

You just use it to pay money. I'm not with you. Yeah. So people at that age, you know, their mindset is they're not working anymore.

Well, tell me, what's the. What's the. Whoa, whoa, whoa, whoa, whoa. You talking about this illustration? Yes. I don't see any premiums out there. Age 65. No, no, but I mean, I just think it's a comment of, you know, we talk to people about why the comment was why would you stop capitalizing it?

Right.

No, you're talking about your policy at $7,000 that you end with dividend was the same. Oh, yeah. But what I ask it is If I move $7,000 from a checking account over here, why would I object to moving money from there to here? I shouldn't. Well, I don't want to.

You can take it back out again if you need.

Social Security. But the common loan is that people do better. That's just the mindset.

We're just trying to get the mindset readjusted. That's why the Bible message is so vital.

Meanwhile, the state wants to expand the cpp. Yeah.

Okay, here's a question. Now, how can we expand on this system? Isn't it obvious that we need to buy $84,000 premium per year here?

I do. Isn't that obvious? I do. Okay. Well, how should we improve this situation? Let's go back to equipment financing page. That's on page 56. Casually gaze at that page. Tell me what one item occupies. 30% of faith.

One item on this page. What kind of insurance? Property casualty. Yes. And what's the first word?

Required.

Physical damage. Well, what does required mean? You don't have a choice. You gotta get it. If you want this financing, you have got to buy Comprehensive Inclusion to protect us, not liability. Y' all understand that liability protects the individual who buys this equipment against loss of somebody else's life or property or something like that? That is not a requirement of the finance company. The other stuff is.

Now look at the items on that section of the. Of the page. Ma.

What does that mean?

Well, question. Does the finance. Shucks. Does the Peterbilt company want to sell this truck and make a commission? Yes. Does the.

Dealership fill out this Mickey Mouse paperwork and earn a fee?

Yes.

Associates does not fill out this stuff. Associates give dealerships reams of forms. You fill out the paperwork, we'll pay you to do so. It's better than having employees benefits and so forth. Now, the fee is enough to make it attractive to the dean. Now, does the dealership want to sell this required insurance to make another commission?

Yes. Yeah, of course.

Does the finance company want to finance all that premium of the insurance plus the truck?

Yes.

You bet. But they cannot make him do business with their insurance company. Tie in saving all the pages, all the blanks. Re n a. So what does that mean?

You didn't take it from them?

That's right. It's required, but not from death. Terry, who is your carrier? Liberty Mutual.

Son. What are they charging you?

You just paid it last month. Wiggles around in a chair, pulls out the files drawer. Pull out the foul and gets it thing. Folks, it was $2,100 per year per truck for $1,000 deductible. Nate, if anything happened to any one of these trucks, he's got to pay the first thousand dollars. Yeah. Well, let me ask y' all something. Have y' all ever seen a body, a logging truck in a body shop? No.

Basically it doesn't happen. But the finance company requires it said to protect it, protect the asset. All right, all right. So.

What? He pays 8, $400 a year for thousand dollar deductible. Ease y' all got that rip back. He pays 8, $400 a year to live the mutual work. In that world that lived in, you shall do that money.

They got to lend it to somebody.

To give back to the not commit to charity. They lend it out somewhere, but not the charity.

They all realize that once you get a whole bunch of cash values, you can self insure on lots of things out there that are just absolute waste effort.

So with that in mind, I like to do these seminars will two hours one day and eight hours the next.

I like people to sleep on that first two hours to let it digest a little bit and so forth.

Get the demons out.

Get the demons.

All right. So when Mary's not with me going back, when I get through that first two hours at night, when I go back to the hotel room to wind down, I have been literally turning on the idiot box and just see what's going on to just wind down.

I do not watch Sci Fi Channel.

Now, I was channel serving several years ago and I stopped on Sci Fi Child some reason or another, because it was all about spacemen and Martians and stuff like that. It intrigued me and I watched the old go.

Well, let's go back to illustration five, and I'm going to look at illustration 12 there. $365,000 in that cash place.

Yep. 365,000.

Yeah, 360, $65,000 in cash pay right there, right? Yep. Now, Stephen, suppose the Martians come one night and one of the spaceships, you know, they got these ray guns that we don't stand a chance against the mart. We do.

Well, there's two guys in this spaceship and one of them sees us, Terry's logging truck down there. And they have no earthly idea what a logging truck is about.

He says, zap.

That truck is now a molten pile of metal and rubber. And that qualifies the definition of total loss.

You can't reconstruct that. No.

All Terry's got to do is he call Richard and say, richard, you ain't gonna believe me. Marcus came last night, got one of my trucks.

If you turn on the tv, you'll see all about it in the news.

Send me some money to buy your truck. And you know, that is very complicated activity.

Tell Bridget, give me some money.

Why do people behave the way they do?

All right, anybody got any questions about equipment financing?

Now.

Y' all listen to Bob because he said something very profound this morning.

In this whole concept, the most important factor is you guys.

The public out there has got to have a coach.

They've got to have a coach.

They got to have somebody that hold them by the hand and guide them through all this stuff. And to get them when they, you know, listen to the noise that's out there, they, you know, run off into ditches on that straightaway, get them back in the corral in the horse area for and so forth. The coach is the most important thing. You should know this sort of stuff up one side and down the other side and perform the function of coaching. If you do, you're going to get paid very, very well and you help the entire world. When you get that backing function down at the unity level now, it's minuscule, but so what? Add it all up out there and it's attainable.

Again. The goal of the Nelson Nash Institute is to get 10% of the the financial people to understand this story and to put it into practice in their lives. And again, when you get to that point, it's a scientific fact that the idea goes viral.

People quit thinking the way that they used to think, and they quit behaving the way that they used to behave.