Nelson Nash: Equipment Financing for Business and Get RICH With This! (27 of 30)

All right. How did I arrive at my 2000 year income for him? Huh?

You want to show him.

So the death benefit that you showed when he started taking income would level out and match when he actually died. So it would be the same and passed on.

That was my criteria, wasn't it? Yeah, but how did I arrive at it?

Did I ask the old if there's any military backgrounds in here? Yeah, nobody is. Was anybody an artillery man?

All right, I going to send y' all to Forksville, Oklahoma. This won't take long. That's the artillery school in the USA now Monica back under about 12 miles. Now I don't know how many kilometers that is. I can't very. I don't. That's okay. Can y' all forgive me? Yeah. About 12 miles back there, there's six 155 millimeter cannons. That's a battery, an artillery battery. Now out here where the action is, there's an expendable guy called the second lieutenant.

Nice. He's camouflaged. He has field glasses that have a vertical scale and a horizontal scale on it. He has a compass, he has a map and he has a radio.

He sees a target out there. He wants to get rid of that thing. Now he's been Fort Sale and he's graduated. He can pretty well tell you where that target is on that map. He looks at the grid coordinates, gets on the radio, calls the fire direction center and gives them the coordinates. One of those. Tell one of them guys down there at that battery send a white phosphorus shell out here to these coordinates.

Now, it has no explosive ability. It's a white puff of smoke. It makes it easier for him to see. Now because of the. It's just surveying this of what the artillery is all about.

They know from the time that shell leaves the muzzle of the cannon, they don't know how long it'll take to get out to the chart. But they give him a 10 second countdown. You know, 10, 9, 8, 7, splash. Well, when he heard that countdown starting, he had his glasses fixed on that thing. He didn't want to miss this idea.

Well, it looked to him like it was on line, but it was about 50 yards short of the target. He does not have a yardstick.

He calls back, same guy throw another knife at.

100 splash. Now this one went over the target about 50 yards. He got a yard signal, didn't he will.

Drop 50 and firefluff that all six cut loops with the high explosive and there went the target. All right, now y' all all graduated From Forks Hill Children's School. You get a diploma in about six months in the mail.

All right, look at the dividend. The 1865.

Let's go back to illustration one. I'm sorry.

Illustration one. I told you 92,000. That's what we're trying to arrive at. Look at the dividend at 865. At 71,000, 942. Right. That won't pay 92,000, but it will.

Say, yeah, yeah, all right. Y' all do great. 71,000 is not as big as 92,000 right there.

Okay, how did we arrive at 92? Well, go down about eight. I know that those dividends are engineered to keep getting better just as a principle. Now, the specifics of it, we never know good greed. But you don't have to be that nitpicky.

Go down there to.

40. He's 69 at the beginning of that year, 60 at the end of the year. There's 80,000 there, right? Yeah.

I said, let's try 80,000 per year. Ran the illustration, and when they do, when I did the numbers on the right side of the page, the death benefit and tax paying kept getting bigger. Curtis, I didn't want that. That was my criteria. It had nothing to do with a life insurance company's ambitions or whatever. Well, I didn't want that to happen. The numbers would get bigger. I wanted the same number like Richard said, at age 65. Death benefit, 2.4 million. And I wanted the same death benefit at age 85, 2.4 million. And so that wasn't what I wanted to come up with in results. So I said, let's try 100,000.

Income. Random illustration numbers on the left, on the right side of the page started going down. All right. Y' all see the connection with y' all children? Now, I just closed in the top.

Now, is there any law that says he can't draw 200,000 a year out of here, but when he does, he's going to eat in the right, right side of the page? Well, that's okay. That's what he wants done. You know, that's up to that. Now, suppose he could get by on $75,000 a year, tax free for the entire time.

Make policy loans? Totally. Well, it will work. But the numbers on the right side of the page will go up.

Y' all understand? Artillery. Now.

Let'S go back over there to illustration two and see what happened. I'm gonna illustrate. Yeah. Illustration two. Okay, Illustration two. Watch the screen.

We moved one truck from the Right side of the Great Wall of China. To the left side of the Great Wall of China.

He's borrowed 52, 2,600. He's paying back $1,500 a month. And hey, Mark, you see that logo on that truck right there? This is authentic, man. I'm not telling you lies.

This is out in Oregon.

But he's still financing 14,600 per month, right? He's borrowed 52,600, but he's paying back 50amonth. Just like he was paying Associates Finance. And he gets a new truck every four years. And Nav's got a million 988. If he dies, 3.3, 3.158. Is that what that is? Million. Yeah. Yeah. All right, but he didn't die. 145,000 a year.

Income. He has recovered the 315,200.

That he put in the policy.

Plus.

2.034 million. And when he died, 3.119 million.

Terry says, I'll put out, son. I'm beginning to see a pattern.

Can I run two trucks through here? Terry, I reminded you, bankers do anything they want to if the bank has the capacity. How much you need? He says, well, 52,600 twice is 105,200. Will, can I lend 105,200? Insurance companies got to lend 157, right? Doesn't he outrank everybody? All right, so he borrows. Annual expression 3. He borrows 105, paying back 3,000 per month. He's playing honest biker, but still pleading 13,000amonth to Associates Finance. They've got their money from insurance companies. Oh, well. All right. Illustration. He replaced the two trucks every four years. Now he has 2.459 million in the cash value.

Suppose he dies. 3.9 million.

Didn't die. Mortgage income, 150,000 a year.

Had a wealth in income. Jesse, go to the next right column. There's your summary of them. And done for you. He's recovered the 470,000 to put into it. You see deed in that 470.

That'S 160,000 initial capital. The rest of that is just premium. Therefore, it's cost basis. Therefore he gets it back tax free.

All he's doing is incrementally. He's paying more capital into a policy that will accommodate it. That's all.

Remember, rule number one Is what? Think long range. Rule number two is don't be afraid to capitalize. Don't be afraid to capitalize. Well, that's all you're Doing incrementally, that money that was going to associate finance is going to become capital. And that is all ridiculously simple.

Now.

Add up that money in the. Okay, where are we Illustration three. All right, the next illustration here he's financing on page four.

Illustration number four, page 61. Everything up through line four is exactly the same. But at this point now, he has moved three trucks from the right side of the wall to the left side of the wall, paying back 4,500 per month. That's on his banking, but he's still leading 11,500 to somebody that should be getting the money.

All right, when he gets down to 865. Now, what's his cash value? 2.928 million. Right. All right, what's the outlay? Next to the right is the 625. Now subtract 160 from that 625, Richard. And what is that?

That's his original first quarter.

That's interest that he was paying to, equivalent to interest he was paying to associates. That now is capital, and that can be received tax free. Well, what if he dies, Richard? 4.642 million.

Gonna be rough.

Didn't die. He wants income. 175,000 a year. Add up on that income, he has recovered that 625,000, right, Benny? He's recovered that 625,000 plus 2.675 million. 676 million. He died. 5 million.

Terry says, Uncle Nelson.

Can I run more trucks from here?

Terry, you're trying to do too much or too little? How many times have y' all heard in a billion, Wayne? They were under capitalized.

Well, what's the obvious answer then, Dalgoni? More capital. But let's suppose he did that. Have. Have that finality and couldn't think he could do this.

In the next illustration, illustration, PI.

Up through line four. It's identical with the previous illustration. Now, between line four and line 12.

It'S almost the same as the previous illustration. That is financing three trucks every four years.

I had to tweak the numbers there and preserve the debt a little bit longer.

To be able to accommodate the money.

Who's paying in?

Did I go to. Did I, Did I cover that? I had to tweak the numbers because he was paying off the loan too quickly. Well, that's not being honest. That's taking pieces out the back door.

Okay, so when I tweaked it, here's the numbers you get. And in the 12 years you notice he's got365,675 in cash value.

Now at that point, Jesse, look what he can do, love. He's moved all four trucks to the left side of the wall and one logging tractor.

Now removable logging tractors cost twice as much as trucks.

All right, so he is borrowing 315,006.6 out of that $3,365,000.

Got that? He is. He is borrowing 315.6 to finance all this equipment and he's borrowing it from that 365,000 that is in cash pay and deposit. All right, Every four years he replaces that equipment. Now Curtis, when he gets down to 8. 65 checkup cash value, sir. Yeah, I took a glance at that 3.5 billion.

Monica, what was it when the insurance company handled it all, love? 1.5.

He made 2 million bucks by shopping at home. By shopping at home. Tax free. Yeah.

Well, let's let him die.

5.575 million didn't die. Let's get income in. Stephen. Stephen.

225,000 a year, right?

Passive income.

Now let's add a little bit passive. Out of all that passive income, he has recovered the 946,000 capital put into the system.

Plus 3.328 million and he died. 5.286 million.

Now tell me why this guy needed a tax qualified retirement plan.

Huh?

Why would you want a tax qualified retirement plan?

Do you know the worst thing about getting a tax qualified plan? Tax qualified retirement plan. The worst thing is it screws up your thinking and you can't think straight. That's all they are now running in your mind. Just like the banker told you that they control your mind. By making them think they're giving you a privilege of some kind. And there is no way.