Nelson Nash's Golden Rules: How to Become A Successful Banker in Canada

When I discovered Nelson's book, that's kind of the same thing that happened is I didn't implement the process right away. I didn't put in the work that was necessary to really learn it like you're doing today. I didn't have a mentor, I didn't have a coach. So I continued to struggle for the next few years. And it wasn't until 2016, 17, where I really committed to the education, became authorized, got a mentor, started to build my policy system and implement the process. And now we don't rely on commercial banks for the need for financing at all.

I need to highlight and emphasize the importance of foundation. You know, the stronger the foundation, the higher the building can go. The stronger the foundation, the more weight it can carry. So anything that we're doing in life has to start with a strong foundation. Otherwise it's probably just going to crumble. So that's why we're going to touch base on understanding where this process came from and who the founder of this concept is. And again, the foundation is also relating to what you're doing here today. You should be acknowledged and congratulated for being here because you're setting time aside, focusing on what you can control and, and, and educating yourself. Before we want to, you know, implement the process or talk about policies or what we can actually do, we have to take time and energy to educate ourselves and read our Nelson Nash's book. Read the, and asset those, those valuable gifts. That's part of the foundation of becoming a successful banker. So congratulations for being here. Who revolutionized the automobile industry with the Model T?

Henry Ford.

Okay, I got one more for you. Who created amusement parks and pioneered cartoon films, including Mickey Mouse? That would be Uncle Walt. Walt Disney. You're exactly right. Now this one should be a pretty easy one. Who revolutionized a process to enable you to become your own banker? Does anyone know this one? You have a bit of a cheat. Cheat? Because I know everybody has a copy of this book, so. That's right. R. Nelson Nash. You know, we can't present any material. We can't talk about the process of becoming your own banker without acknowledging R. Nelson Nash. We owe him a debt of gratitude that none of us can pay back. And rest his soul. One of the things that Nelson always emphasized is that it's. This is not about the man. It's about, it's about the process. It's about the people. It's about the message. But we always have to give acknowledgment to, To Nelson, one of the Things that Nelson was famous for saying. This is a quote that he coined in 1994. He said what a peaceful, stress free way of life it is when you get the banks out of your Life. So since 1994, nobody in Nelson's family, well, anyone who participates in the family banking process, that is at least no one has stepped foot in the commercial banks for the need for financing. They only use the commercial banks for the convenience of debit. The banking process, the financing function, it all resides with the family. We're talking investments, mortgages, car financing, boats, planes. In Nelson's case, he financed a couple planes through his family banking system as well. And all that money comes back to the family. You will know that you are capable of becoming your own banker because you're already doing most of what you need to do to become your own banker. You'll have clarity on the problem and the solution and you'll know what you can do. Again, we can't focus on the solution if we're not clear about the problem. And what you can do is what matters most because it's all about what you can control. You'll feel like found hope and a new belief in that. A way that they could create their own peaceful, stress free financial life. And what is the opposite of being stress free? It looks a lot like this. And I think we've all felt like this before. I felt like this last week when I was stuck in Toronto traffic. I can tell you, I don't know how you guys do it. It's pretty impressive. But what have you been taught? What have you been told to do? You've been taught to put your money into things like mutual funds, commodities, stocks, bonds, and you know, rely on somebody else who thinks that they can do better with your money than you can. And then, you know, you've been putting or taught to put your money in prisons like an RSP or maybe even your primary residence. People think of that sometimes as an investment, but it's essentially in a prison. And then you actually have to go to somebody else's bank, I say that again, somebody else's bank to access more money to achieve the objectives that you want to achieve today. Whether that's financing a vehicle or purchasing your next investment. Someone else is controlling the banking function and they're the ones who is going to determine if you get the capital that you need. And that's absolutely absurd. You're the one doing all the work. You should be the one who has control. Now I'm telling you, if you've been Handing control of your money over to somebody else, then you might not be in the best situation right now, but it's okay. It's okay because it's not your fault. And you're here now to learn a different way just to enhance whatever it is that you're already doing financially. If you weren't committed, you probably wouldn't be here right now. But are you committed to discovering the process of becoming your own banker? Are you willing to commit to doing anything or to improve anything that is that you're currently doing that financially that's preventing you from becoming your own banker? Welcome to commitment. Enjoy your stay. Now I'll share this briefly. I discovered a peaceful, stress free financial life the hard way, as probably many people do. And I think sometimes that actually makes it more profound or it has more staying power when you can appreciate the harder times. I'm actually in my hometown right now. I'm normally in Calgary. I've been there for almost the last 20 years and you know, went on a mission just like you are, to build a life and to create wealth and to give back. Or I shouldn't say give back because I didn't take anything but to just contribute and make a difference and, and share with people because the more I have, the more I can give. That's the way that I look at it. If I have too much, it just means I have more that I can bless other people's lives with. So that's my, that's my mission, that's my objective is to help bless other people's lives. And where I come from, there's a lot of poverty in Saint John, New Brunswick, a lot of social programs, a lot of people who struggle. And right now I'm driving around my hometown showing my kids where I came from in my high school and some of the apartments I grew up in, because I lived in many apartments in Saint John, New Brunswick when I was growing up. And I was one of those kids that was a part of, you know, those food programs and the breakfast thing at the school and, and I got to tell you, that makes a tremendous difference for that kid. If you've ever been in that situation, you know what I'm talking about. And I have a friend of mine who's a military veteran here in town and he's actually got an operation, he's got a charity that he's created and he's making amazing headway with it. But he's, he's, it's, I can't remember what he called it, Operation Feed St. John or something to that effect. But I'm definitely going to get involved in that organization because he. He's feeding. That's his objective. And so, you know, growing up, money wasn't even a conversation at all. Not because it was taboo, but because there wasn't any of it going around. There wasn't any conversation to be had. I grew up with parents who actually didn't work. They were on social programs. I saw my father every other weekend. My mother was a single mother and just really just trying to survive. So the conversation of money wasn't even a topic. But I got. I got lucky. Call it God, call it the higher power of your choice, but I kind of paid attention and I observed what was going on with my own family and I observed what was going on with other people in general and maybe some of the families that I visited. So friends of mine. And I just saw that there's different ways of being. There's different attitudes and behaviors that you can take on that are clearly going to influence how your life turns out. I couldn't have articulated that 20, 30 years ago, but that's kind of what I see now that I noticed. And so I got lucky because I always had some mentor. Somebody would come in, a guardian angel somewhere would come in through my life and give me some guidance and some lessons and challenge me to grow to that next step. So I did a lot of that through sports and. And things like that. In fact, last night, I literally was connecting with my high school football coach, who is. Who was a tremendous contribution throughout my life. In fact, he. He literally bought me and my family Thanksgiving dinner one year. I'll never forget that. And I'm trying to tell this story without getting emotional, but that's kind of what it was like. That's what it was like for me and my family growing up. And I. And I know that money is not everything, but it's the tool. It's what money can do. And that was kind of the mission I went on. And that's what I realized, is that if people just had some education around how money works and if we had some education around personal development and what we can do to influence our situation, that's what's going to make the difference. And so after about 20 years of a very slow journey of me trying to figure all this out, I made a ton of mistakes throughout my. My 20s, which is fine because you either win or you learn. So from those mistakes, now I get to bring that value to the conversations that I have. I discovered Becoming your own Banker in 2013. I was licensed as a life insurance advisor in 2011. And it's been a tough journey, right, Just building that business for about the first six or eight years. It was really challenging. You'd think that I would say in 2013, when I discovered Nelson's book, that everything transformed, but maybe you've been in this situation before. I come from a construction background. I was not, you know, the most studious person in high school and my post secondary and all those kinds of things. It was kind of like getting through it. So I went into construction by default. If you're in construction, there's nothing wrong with that. It's just not what I chose. It chose me. I just defaulted to that because I thought that that's what I could do. Pick stuff up, put stuff down, swing a hammer like that. And I wanted to do more, I wanted to contribute, I wanted to help more people. And then I had to force myself to get out there and grow. And that was very challenging for me. But when I discovered Nelson's book, that's kind of the same thing that happened is I didn't implement the process right away. I didn't put in the work that was necessary to really learn it like you're doing today. I didn't have a mentor, I didn't have a coach. So I continued to struggle for the next few years and it wasn't until 2016, 17, where I really committed to the education, became authorized, got a mentor, started to build my policy system and implement the process. And now for the last three years now, I've been on the ascendant financial team. I've built my policy system up to 11 policies now in our family system. And now we don't rely on commercial banks for the need for financing at all. We've, we're, we're working on recapturing any of the last debts that we have on, mainly on our primary residence. But anything outside of that is all financed through the family, including all of our living expenses. Everything goes through the family banking system. And now we've gotten to the point where we finally gotten the attention of our extended family members and we're now starting to arrange private loans within the family to recapture third party debt like car financing and things like that. We did a private deal at the beginning of this year where we loaned $26,000 to a construction company that's owned in our company or our family and we bought it with some vehicle debt. And now that payment that they were making is coming home. So um, it was a, it was a, it was a tough journey early on, but now we're just seeing the possibility and growing from here. I always say to people it's two completely different things. Knowing how to earn money or receiving money and then knowing exactly what to do with the money when you get it. And I'm thankful to say that I think it's more powerful to know exactly what to do with the money when you get it. When I started to really learn this process and read through Nelson's book and get the coaching, this is something that really stood out to me. And we're going to expand on this today, he said. Nelson said, you cannot get a better rate of return investing in anything without first controlling the financing function as it relates to your needs. That is the most powerful thing because everything that we do financially is a function of financing. By the way, this is a picture a couple years ago. That's my friend David in the background here. That's Sarblo, that was, I call that his Covid cut. And now it's me in the background and Jason Lowe and Richard Canfield all, with exception of David, all members of our team. And we were doing a watch party, watching Nelson Nash's 10 hour seminar that his book was actually born from. And that was in Jason's, at Jason's place. It was pretty, a pretty awesome day. So now most people believe that they need someone else to take care of their money. Most people believe that it's necessary to take risk in order to grow their money. Most people know next to nothing about the process of banking and its importance as it relates to their well being and in their lives. Here's the truth. Truth number one is the difference between you being stressed and staying relaxed financially is who controls the banking function in your life. Truth number one. Truth number two is you don't have to put your money in a prison for decades and rely on someone else to achieve the financial abundance that you deserve today. Truth number three is that you don't have to be rich to become your own banker. We have people putting as little as $2,500 a year into their policy system. All the way over $200,000 a year and more. So if you're somewhere between those two numbers, you can get started. Now the question though that comes up is, Fern, who is the process of becoming your own banker for? Well, it's for you. It's for you. Because everyone has the need for the use of money and everybody has the need for the use of banking. So the process Is for you now how the infinite banking concept got started. This is one of the things that inspires me most is because it got started through one man's own financial ruin. You may be familiar with the inflation rates jumping through the roof in the 1980s. It peaked at 18% in the interest rates on bank loans went even higher. And Nelson, Nelson Nash was, was a pretty successful a real estate investor during the 1970s. And he continued to, you know, invest in land and do different projects. And he kept doing quite well at it. And everyone thought, hey, you can't lose. All you have to do is borrow money from the commercial bank. You're on the hook for the interest that you have to pay or to carry that financing. Once you sell the property or get the cash flow, life is good. You pay off the bank and you get the rest. Well, what Nelson failed to realize or what he failed to learn about is what happens when the interest rate lever goes the other way. He was stuck with $500,000 of mortgage debt in the early 1980s when the interest rate peaked to 21 and a half percent. And that was prime. And I don't, I've never met anyone who's prime. Nelson wasn't prime either. So he had plus one, plus one and a half percent and he was paying 23% on his mortgage financing. So you can imagine the immense stress that he was under dealing with that situation. And everyone just told him all, hey, all you have to do is sell the real estate. Well, he thought to himself, what fool is going to buy this real estate in this situation? And so through many, many nights of literally being on his knees praying for a solution, he didn't realize that it was right under his nose. Nelson was already accustomed to depositing large amounts of premium into permanent, participating, dividend paying, whole life policies. And he realized that he could actually access money at much lower interest rates with a lot more control directly from his policy system to pay off these, as he referred to the snakes and dragons at the, at the commercial banks. And that's exactly what he did. He started to build up his policy system and instead of when he would, you know, earn more income or he would, he would liquidate an asset or come into a windfall of capital. Instead of just paying off the banks, he cranked up more policies. And everybody thought he was crazy, but that's what he did. Now here's an important question. Everyone needs a heart. Would you agree? Absolutely. Now I want to tell you a story about Nelson. And Nelson was really good at creating analogies. And helping us understand how things worked without telling you how things work. Now this is a picture of what's called a heart and lung machine. And Nelson, he had a surgery, he had his heart replumbed in the year 1989, I believe it was. So he had already been implementing the process of becoming your own banker at that time and just started. And he didn't really, wasn't really coaching or teaching a lot of people about this process. But when he went in to get his heart replumbed, they hooked him up to something called a heart and lung machine. And the heart and lung machine's job is to pump the blood through your body and keep you alive while the doctors do the good work that they had to do. And Nelson didn't, you know, remember this, of course, because he was heavily sedated, but he, he, when he came out of it, he, he just realized that, you know, when he was on that heart and lung machine, he was existing. He wasn't really living, he wasn't thriving. And that heart and lung machine's job is to pump the blood through your body. So just kept him surviving. And this is what he started to realize about what people are essentially doing with their money. Banking is the most important business in the world as well as it relates to finances. Because without, without banking, nothing actually happens. Nothing moves. If the money stops moving in the banking system, the system will collapse. And that's what happened back in 2008 with the, with the financial crisis. The money stopped moving, they stopped lending. Now the banking system pumps money where it is needed. And at some point that money is going to flow through your hands and through mine and it's going to wind up. Where, where does it wind up? It winds up right back in the banking system. If you think about this for a second, there's only one banking system. It doesn't matter if it's in Canada or in the UK or in China, if there's different denominations of money and currencies, if there's any number of financial institutions, insurance companies and whatever it is managing all this money, there's actually only one pool of money. And all that money always flows right back to the banking system. It's all connected. Much like if you picture the globe and there's, you know, the, the Indian Ocean, there's the Atlantic Ocean, the Pacific Ocean, the Mediterranean. They all have different names, they're different geographical areas. But the sun's going to hit the water, it's going to heat that water up, it's going to move it over to a different part of the world. It's going to rain, it's going to go into the rivers and lakes. Some of that's going to flow through you and me, and then it's all going to wind up right back in the ocean, right back in the one pool of water that's on planet Earth. It's all connected. The Indian Ocean is connected to the Atlantic Ocean. It's just how it works. There's only one pool of water and it works exactly the same with the banking system. And it all winds up right back in the banking system. The issue here is this. How much of the banking function do you control as it relates to your needs? Remember, there's only one pool of money in the world. What Nelson saw is that he was pumping money into the pool in the wrong way. He was doing all the work and he was pumping the money into someone else's system. He had to go through bankers and toll takers and gatekeepers who were all making money off of him and abusing him, and ask yourself, has that ever happened to you? Now he realized that what he needed to do was to crank up large life insurance premiums. And, well, to do that, you can't get that done overnight. Everyone and everyone thought he was crazy, as I mentioned earlier, even his wife Mary, she thought he was, he was out to lunch. But you have to get this done incrementally over a period of time. And that's something that Nelson saw that other people didn't see. Right. And sometimes you have to go and take that, that leap of faith, as it were. Now, this is another thing that Nelson taught us and most people are not aware of this. There's actually four characters in the financial play. Not only do people not know that there's four characters in the financial play, they get all the characters mixed up. So the first character is a depositor, and we are all, we are all depositors. The money has to get deposited, right? Somewhere before you use it. It has to get deposited and we are all borrowers, okay? And what we mean by this is you're either going to borrow money from someone else and you're. And you're going to pay interest to someone else or you're going to use your own cash and you're permanently going to transfer away the opportunity to earn interest on that money. So it's always borrowed money. You're either paying interest or you're giving up interest you otherwise could have earned. There's also the banker, and this is the four characters in financial play. No Matter what we do financially, there's always going to be a depositor, always going to be a borrower, and there's always going to be a banker. Well, what does the banker do? The banker is the one who distributes the money. The banker is the one who decides whether or not you can access the money. And if you're borrowing money, they're going to be the one who decides the repayment schedule, the interest rate and so on. So again, most people are only two of the four characters. And the fourth character in the play is the bank owner. Who's making the most money? Well, it's the bank owner. And so by implementing the process of becoming your own banker, we can become all four characters in the financial play. Remember the Golden Rule, people abdicated their responsibility and the opportunity as it pertains to the banking function in the economy they're depending on someone else to perform that job. And that character in the play is making most of the money and rightfully so. Because of the Golden Rule, those who have the gold make the rules. So remember, think about that heart and lung machine. That's what Nelson discovered is he was doing all the work and someone else was getting all the money and he was pumping money into the system in the wrong direction. So the person on the street in Canada today understands the subject so poorly that he's doing equivalent to living off a heart and lung machine. What I want to talk to you about is how to create a system which will, which you can take control of every banking function as it relates to your needs. That's what we're going to expand on today. Well, you have a copy of this book already and this book has sold over 470,000 copies. In fact, I think it's well over 500,000 copies at this point. And why would so many copies be sold a self published book? I don't know of any other self published books, I have no idea that have sold that many copies. Why would that be happening? Well, because it's work, it works, it's, it's, it's really quite simple. Now the very first principle that needs to be understood, and this is on page 21 of Nelson's book, is that you finance everything that you buy. You're either going to pay somebody else interest or you're going to give up the interest that you otherwise could have earned. And you're going to hear us repeat things because repetition is our best teacher. And sometimes when we hear things the first time, it doesn't quite land. And especially for me, this has probably happened for Henry as well. But there are certain things that I heard and I kind of thought, oh, that makes sense. And I understand that. And then when I actually started practicing the concept, it hits you in an entirely different way. The second, the third, the fourth time you read Nelson's book, you'll pick up things that you just couldn't see or couldn't hear. And it didn't have the impact on you when you first heard it that it might have in the future. And there's no exceptions to this rule. You're either going to pay up or you're going to give up. It's as simple as that. The whole idea is to recapture the interest that one is paying to banks and finance companies for the major purchases that you need during your lifetime. And the objective is to keep the money in the family.

Think about that. The question is, how much of the banking function do you control as it relates to your needs.

And your money? It must reside somewhere. It has to sit somewhere and be deposited until you're waiting for that next opportunity or that major function. And someone must perform the banking function or the function of banking in your life. And that someone should be you. Now, this process is, is not an either or that this is something I want to make extremely clear to people. We're not saying, hey, become your own banker and, and, and and and not do real estate or cryptos or whatever it is that you're doing or pay off your debt. It's an and process. Becoming your own banker is not about addressing the yield on an investment either. It's not an investment. It's all about how you finance the things that you need in your life, which certainly could include investments because everything is a financing function. Here's where we're going to get into the grocery store business and we get a little bit of an opportunity to sort of think or have a different way of thinking about banking here. Nelson created this analogy. He says, getting into the grocery store business. He says, consider a business in which you are a consumer and the seller of a product.

You have a market that is unlimited. Everybody needs groceries, just like everybody needs money in banking. Someone has to perform the distribution function, just like banking. Now, if you're going to get into the grocery store business, you would do what you're doing today. You would study the business for a period of time. You would get a mentor, you would get a coach. You would learn about the business you need to purchase a superior location. Real estate investors know what's the three rules. Location, location, location. Now you need to build an attractive building so that you people see it, they want to come in, and you need to stock your shelves with high quality merchandise because people don't want to shop at empty. With empty shelves or where there's no high quality merchandise. Now, the grocery store business has a very low profit margin. You have to turn the inventory 15 times just to break even. If you turn it 17 times, you will become profitable. If you turn the inventory 20 times per year, you can retire early. Now, what's happening with our grocery store here is that we're the. We're going to use a can of peas as this analogy, by the way, for your. For your inventory. But the cans of peas come in through the back door and then.

They go out the front door through by the cash register and people have to pay the retail cost for that, those groceries. Now, once the 60 cents comes in.

The business owner uses that money to purchase more inventory so that they can sell more product and that they can create more profit. Right now, the cans of peas are purchased for 57 cents. Because you're the business owner, you can do whatever it is that you want to do. Would you shop for the groceries and fill up your grocery cart and go out the front door past the cash register and pay retail costs like everyone else, or would you go out the back door? For those of you who picked the front door, I would say that you are correct. Because what happens with a lot of business owners is they don't realize, of course you can go out the front door or the back door because you own the business. You set the rules. You can pay retail cost or wholesale cost, but think about the use of that money or the cans of peas. For every can of peas that you take and pay $0.57 for and go out the back door, how many more cans of peas do you have to sell to make up for what you used? That profit is gone. So you're essentially tricking yourself. You're stealing from your own business. So what Nelson taught us was to go out the front door and pay retail costs. In fact, he taught us not to pay 60 cents. He said, Put a couple of extra pennies in the cash register and flow more money back through your own grocery store so that you can buy even more inventory to sell to more captive customers. Think about what your books are going to look like 5, 10, 15 years down the road when you go to sell that business. And you compare that to the person down the street who's been going out the back door for 15 years. Your business is going to be far more profitable and look a lot better. So if when we're banking, when we're accessing policy loans, this is the analogy Nelson was referring to. When we're accessing policy loans from the life insurance company that we co own, I'm actually going to pay the life insurance company. I'm going to pay those loans back at a higher interest rate than they're even asking for. I'm going to put an extra 2 cents in the cash register to give more access to capital to the life insurance company so they can put more money to work and grow more profit and share with us, the co owners of the business. That's, that's what Nelson's talking about here. Once you understand the grocery store example, the rest of becoming your own banker is ridiculously simple. Don't steal the piece. Here's the problem. Wherever wealth resides, someone will try and steal it. And this is what Henry is an expert at helping us with, stopping people from stealing the piece. Now who is the banker in your life today? You're earning an income today and then that income gets deposited into.

Someone else's bank. Let that sink in. You earn the income and then your income gets deposited in someone else's bank and then you go to access that money to pay your bills and to live your life and do what you have to do. And in other words.

Remember, you pay those bills, the money winds up right back in the bank because that's where whoever you pay the bill to is going to put the money. So you're doing all of the work and everyone else is getting all of your money. And how does that make you feel?

Does it make you feel like this?

That's how it makes me feel when I really started to discover this process. And we're going to walk through an example now, I want you to think about anything that you are financing in your life. Any major expense, I mean lifestyle by the way, is a major expense and you're financing that, that need. But it could be a vehicle, it could be an investment, it could be recapturing debt, it could be putting your kids through school. It doesn't matter what the thing is. But I want you to think for yourself a major thing that you have coming up or that you financed in your lifetime. And there are two different types of people out there. There's two different ways to finance things. You have the debtor, the person on top here, this person believes, hey, you know what, I don't want to save up the money or I don't have access to the money. I'm just going to go. I'm at zero right now and I'm going to go to someone else's bank and I'm going to qualify for a loan and I'm going to go down here. And again, that could be for financing a vehicle or an investment. And now what I'm going to do is I'm going to agree on someone else's terms to make payments for however long. Could be six, seven, eight years. I'm going to make payments to someone else's bank and permanently transfer that money away. If it was a car or something to that effect. I need to go back to the bank or more rental properties or whatever, and I need to qualify again. And I'm going to go and do the same thing and I'm going to keep making payments on someone else's terms. And what happens if life happens if this payment cycle gets interrupted at any time? You don't own anything until the final payment is actually made. Right now, down below, we have a person who goes, you know what? No, I don't want to qualify for a loan. I don't want to pay interest. I'm going to go ahead and I'm going to pile up money. I'm going to save money. Where are they saving the money? They're saving the money in someone else's bank. So they're giving up use and control over that financial energy. They're storing that money into someone else's bank until they get to the point where they have enough capital saved up, where they can achieve the objective that they want to achieve. And then they're going to interrupt the growth, if there is any growth. They're going to interrupt the momentum on that money. They're going to draw it all the way down to zero, and then they're going to go achieve the objective. And now they actually have to pile up money again for their next major expense. And if you look at these two, they look like a mirror of one another. People trick themselves into thinking that they're not making a payment. You're never avoiding a payment. You're either saving up money and making one balloon payment and then you're saving up money again and continuing to make payments back to someone else's bank. Or you're making a monthly payment on a financing arrangement. You can't escape payments. You can't change that. But what you can do is you can change who's getting the money and who's that money being put to work for? The person on top, this person can actually see the interest because it was a part of their payment. They know what their financing arrangement was. The person on the bottom, this person doesn't see the interest that they're giving up the opportunity to earn. And that is a really important piece. Every single dollar has growth potential. So you're either paying interest or you're giving up interest.

Both methods are a permanent transfer of money away from you. And every payment that you make is a deposit in someone else's bank. When you borrow money from someone else, you are their asset. And the solution is the process of becoming your own banker. When you become the banker, the money flows back toward your family bank instead of flowing to someone else's bank. Your money has to reside somewhere. It has to be deposited before it gets used. What we're going to do is we're going to have a thought experiment where you have an opportunity to actually create a perfect investment. It's a fun thought experiment. Now here's the conditions. Okay, if you could invent a type of asset from scratch that had no. This should be capitalized, no drawbacks, okay? What would it look like? Just think about this. What Henry and I will do is we'll get you started. Here are some attributes, the most popular attributes that have been shared with us in the past. High rate of return. That's like the first one that people want, right? High rate of return. They want a consistent rate of return. And oh, I gave another one away. Conservative, safe. And we'll give you liquid too. Here's the most popular responses that we've had from past participants. Guaranteed tax benefits. No market volatility yields income. Besides capital gains, creditor protected. That one is one of my favorite. Inflation protected, control transferable, easy to manage, no hidden fees or penalties. Reputable. So well known. Private. Private is very good. Now I've got a surprise for you. The list of attributes that were shared most accurately describes a dividend paying, participating, whole life insurance contract.

Now this is what we refer to as the tool. There is a process of banking and then we must have a tool to implement the process. Let's break this down. What is participating? You become a part owner. When we're referring to a mutual insurance company, which is the most ideal type of company to use to implement this process. You become a co owner in the life insurance company and you participate in the profits that are generated from every line of business. Think about all the different products that a life insurance company sells. It's not just whole life insurance. They got critical illness, disability, group Benefits. They've got segregated funds, they've got term life insurance, universal life insurance, the list goes on and on. They're selling so many different products. Dividend paying. So each year the life insurance company declares a dividend. It is contractually guaranteed to be paid to the participating policy owner and it can never be repossessed or lose value. It holds that value. It's guaranteed by the insurance company whole life. What does that mean? There's nothing wrong with term life insurance. It does serve a purpose. But you are insured for your whole Life until age 100. The total cash value of the policy must equal the total death benefit by your age 100. Every single day that you age, the total cash value rises and it cannot be, it cannot lose value. Just, just like the dividend. Every single day that I age, my life insurance system, my policy system gets stronger. I have more access to capital today than I did yesterday. Just because the higher power of your choice. Bless me with oxygen today. We don't have many guarantees anymore, right? Pensions are going by the wayside. There's doubt about the future. And however dividend paying insurance can help create peace of mind and unmatched financial security. This is one of the oldest tools, financial tools in Canada. It outdates the Income Tax Act. Here's how we get that done, or here's how it can. It can give you that security. Cash value begins to accumulate immediately, right from day one. And it is contractually guaranteed to grow daily. Cash value cannot go down.

Every. It's easy access and you have control over a growing pool of financial value that you can use to take advantage of high quality opportunities that are going to track you down. You're not penalized for accessing it early like you are with things like RRSPs and other financial products. There are several tax advantages, both personally and corporately. It provides a growing death benefit which is paid to the named beneficiary income tax free. So a tax free windfall. Now, if you think about going back to our previous example where we were talking about the debtor or the saver, and now knowing that capital must reside somewhere, it needs to have a home, think about this slide that I'm showing you here. You are your greatest advantage. I always tell my clients, I say, you know, if you're financing vehicles or mortgages or making payments to someone else, you're already some other bank's really good customer. Why not become your own banker and become your own really good customer? So let's imagine just like that other slide we're starting at the zero line, we are depositing capital, right? Or we get a windfall of capital from the sale of a property, or we flipped a house or whatever it is. That capital has to reside somewhere until we make our next major investment. So you can see this green line here that's going up, that represents the rising cash value in the policy. Every single day you age, it is growing. Now let's imagine that you get to a certain point of your cash value is wherever it is and then you have enough capital in your system, you have access to up to 90% of that total cash value.

No questions asked, because you're the banker. Well, you can borrow that cash value out of the policy.

Without interrupting the daily cash accumulation on the cash value. And now this line here, this represents us paying back our own policy, policy loan. And you'll notice that the cash value has increased. It just keeps on increasing, increasing. So wherever your balance of that loan is and the cash value, you're always getting access to more and more value as you're paying it back. You can go back and re access what you've paid back plus whatever's grown. So you're not interrupting the momentum on your money. Your money's always gaining more and more momentum and it's growing and compounding and you just have access to an ever increasing pool of financial value that you can take advantage of for high quality opportunities that track you down. These are Nelson Nash's five golden rules. He said, think long range. Nelson was trained as a forester. And when you're trained as a forester, you're taught to think at least 75% years ahead. So Nelson said, think two or three generations down the road. I'm thinking about my unborn potential future grandkids. That's why I have my kids. Are our life insured today? Because the larger program I build on them, the larger program I can build on my future grandkids if and when they show up. Think long range.

Don't be afraid to capitalize your system. Remember your wealth, your money, your capital, it must be deposited. It has to reside somewhere. It may as well reside in a system that you own and you control at a company that you co own. So I want to get every single dollar I can into my system and I build that up incrementally over time. Don't be afraid to capitalize. Don't steal the peas. If I'm going to borrow money from my system, I'm not just going to pay back what I borrowed, I'm going to pay back Even more so I can put more money to work in that system and I can go back and access even more because it has to be, has to reside somewhere. Don't do business with banks. Most people don't know that when we do business with banks we are unknowingly and unwillingly contributing to the inflation problem because banks inflate the money supply by issuing loans. That's just a fact of how that works. So don't do business with banks. Now this is really important and Jason actually got credit for this. After Nelson passed, his son. Nelson's son in law, David Stearns had shared with Jason that this fifth golden rule that was added really close to the end of Nelson's life, rethink your thinking. That was because of Jason Lowe, something that Jason shared with Nelson and he actually added that as a fifth golden rule because it's not just important for us to think about what we're doing, but it's actually important to think about what we're thinking about and rethink our thinking like we're doing today. We're actually reevaluating how the banking process works. So you have to rethink your thinking. And we were lucky two weeks ago when David Stearns was on a call with Jason Lowe. A 90 minute interview that they did, kind of a conversation. David Stearns is again Nelson Nash's son in law and he kind of took over the operations after, after Nelson passed. And one of the things that happened on that call, which is probably up on our YouTube channel, which we'll show a little bit later, it's probably up on our YouTube channel already. He actually said there's now a sixth golden rule that's been added. We got the unveiling of the six golden rule live on a call and he said you need to create a place, you need to create a home, a warehouse. You have to have capacity for windfalls. So when you sell a home or when somebody passes away, you need to have enough room in your system to hold that capital. So create a place for windfalls is a sixth golden rule now for individuals and families. I'm going to share with you a, a testimonial that came from one of Jason Lowe's clients. This is a client that he's been working with for a while now. He's a police officer in, I believe in, I want to say in Edmonton. And I'm just going to share a highlight here. So he says two years after opening our first policy, we took out our first policy loan to pay off a bank loan on my wife's Subaru. This is really critical. Redirecting the payments from the commercial bank to our own, to our, our family bank. So they didn't change anything, they just changed who was getting the money. Three years later, five year, year five, we took out another policy loan and skipped the bank entirely. This time using the money to buy a brand new SUV outright. And they would create their own loan repayment schedule. Right. To send back to their system in, in, in year five, we also had another child and took out a policy on him as well as a second policy on myself. With five policies now in force after seven years, our mortgage came, was coming up for renewal. Instead of renewing with the commercial bank, we took out policy loans from all five of their policies and paid the mortgage off entirely. So you can see how they're building the system incrementally over time. They're following the golden rules, Nelson Nash's golden rules. They're sending the money back to the system, they're expanding the system. One of the questions that often comes up for us is.

Can we connect with the right person on your team to take a look at my financial situation and show me how to become my own banker? And the answer is absolutely yes. Now got a call designed specifically for to answer that question. We set up a 15 minute call just to introduce them to our team and to learn a bit more about them and help them determine if hey, is this going to be a good fit for you? And what are the next steps going to be? Do you need to educate yourself more by consuming content? Do you need to read Nelson Nash's book? Well, you all have a copy of this book so we expect that you would read it. Especially before you connect with one of our team members. Read this book. It's only about 77 pages of reading and there's actually a YouTube video that my, my colleague and I, Richard Canfield shared where we go through how to actually read Nelson's book. Kind of skipping back and forth a little bit, but point is, read Nelson's book. Normally we have this 15 minute call that we set up, but what we want to do is we want to actually just forego that call and we want to actually jump right into a 60 minute clarity meeting over. Zoom. Our automation is set up such that you would have probably already received a link to set up that 15 minute clarity call. Or you can text the word Schedule to 780-809-4599. Text the word Schedule to 780-809459. 9 and that will, you'll be provided a link to schedule that 15 minute discovery call. But what we're going to do is use that as an indication to us that you want to set up that 60 minute clarity meeting to take a deeper dive into your situation and help determine if becoming your own banker is going to be a good fit. So even if you schedule a 15 minute call, what we're going to do is follow up with you afterwards. We're going to reach out, give you a call and we'll work out a time to meet over zoom and take a deeper dive into, into your situation. So hopefully that wasn't too complicated. So just text the word schedule and we'll follow up and make sure that we have a 60 minute Zoom call scheduled to create more clarity. Okay. I think the 15 minute call, at this point we're just, we're past that. So we'll get you into a 60 minute Zoom call for, for more clarity. Okay. I know, and you should know deep down that you are capable of becoming your own banker. Now here's the follow up that you can expect. Although I already just kind of explained this. We're going to stay in touch with you. If you don't schedule a call right away, we're going to stay in touch with you via email and you can obviously unsubscribe at any time. You'll receive an invitation to schedule a time to meet. And if we don't, if we don't hear from you, the right advisor on our team is going to extend a courtesy call and find a mutually convenient time to, to meet. And if you prefer not to meet, simply let us know. And as long as you leave happy, that's okay with us. Okay, so that's really good. Now what I'm going to do now is I'm going to share another testimonial with you. And this is a, I think this is a really powerful share. This is from Alan and Janet. Antonio and I scroll down and just go to the highlights here. They said after three years of building our policies, we already had accumulated enough cash value that we could withdraw. And, and they said withdrawal. I should actually highlight that they didn't withdraw. Okay. Withdrawals are, as it relates to this process, you can withdraw money, but we're coaching people to borrow against the value because when you withdraw, value goes down because you pulled it out. We're not pulling anything out, we're borrowing against the value. So it keeps on growing. We're accessing money from the life insurance company so they Borrowed enough money from their policy system to pay off the bank mortgages on their rental properties, the rental real estate, 13 years early. So think about that. All of the rental income, most of it's going to the bank to pay the mortgage. Well, when you become the banker, more of that capital, all of that capital is coming back to you in the system so you can access more capital to do more things. That was a huge accomplishment. Knowing that we were now really using the IBC system as infinite banking concept as it was intended. When our oldest daughter and our son in law decided to purchase their first home, we were able to access loans from her policy. So they had a policy on her that we had started and also, and also fund from funds from our policies to buy their home as a cash deal. So they didn't use the mortgage, they had no mortgage at all. From a commercial, from a traditional commercial bank. Currently they are making payments back to us. So think about that as it relates to passive income time. Your kids, your grandkids, your nieces, nephews, potentially they're all making payments already to someone. Wouldn't it be better to keep that money in the family if you could provide that capital for them? So, so making that payment back to us for the bank loan for the loan instead of the bank. Thus keeping with the idea of keeping the money in the family. Such a powerful example. Let's compare how 99% of the Canadian public buy cars. Each of these methods require ongoing payments and a consistent transfer of capital away from you. So we have the no purchase plan which is leasing. We have the post purchase plan which is financing. And then we have the pre purchase plan which is saving money in someone else's bank and then paying cash for the deal. Now with each of these methods, who is getting all of your money? Someone else's bank. Al Bundy says that's not good. Okay, now here's a couple of questions. How many vehicles have have you and your family purchased in your lifetime, either cash, leased or financing? And how many more vehicles are you and your family planning to buy for the remainder of your lifetime? So we have 15 vehicles between everybody that's here. And so that's an average of three. Isn't that interesting? So now Henry, what's the average cost of a vehicle? What do you think? What are we going to say?

35,000, 40,000.

Okay, let's go be conservative and say 35, which I'm not sure that's even a thing anymore. But so that is between all of us, that's $525,000 in vehicle financing that has been permanently transferred away from our families now forever. We'll never get that money back and we'll never have the opportunity to grow it. And now just think about.

Like my slide says, how many more cars are you going to finance throughout your lifetime? People are likely to spend more money financing vehicles throughout their lifetime than they ever will save for retirement. That's, that's a big problem in Canada. If you, if you look outside, you're in Toronto. I was just there. Beautiful cars everywhere. Same thing with Calgary. The cars are, the cars are everywhere and people are just financing them and sending money away. So I'm showing you an example here. This is a picture of me from last summer, August of 2021. I purchased a vehicle in January of 2019. And I stretched the financing out for eight years because I was in a much different financial situation. There was other things that were higher priority and I was really at a different stage of building my system. I think I had six policies, maybe seven at the time. I'm now up to 11 policies. So I wanted to keep the payment as low as possible at the dealership while I could free up more cash to build my system. So I paid down some of the balance and built up my policy system and I got to August of 2021 about two and a half years later, which is five and a half years early on the vehicle financing. And what I chose to do, I access the policy loan of 34,000. But to pay off the vehicle, what were my options? Though? I could have paid cash on it, I could continue to finance it, or I could have leased it originally. But what I decided to do was use the process of becoming my own banker. And so think about for yourself, what is the lost opportunity cost of choosing one options, one option over the other, paying cash, leasing or financing. So what I did was I just changed the process. Now I capitalized my policy. Don't be afraid to capitalize. Money has to reside somewhere. I requested a policy loan from the life insurance company of 34,000. And I was using my cash value as collateral. So I'm using the life insurance company's money and my cash value is being used as collateral. So don't do business with banks. And instead the insurance company placed a lien on the death benefit for the balance of the loan. While 100% of my cash value continues growing uninterrupted every single day. Now I control the repayment schedule and I decided to repay my policy loan at $700 per month. And that's over a period of 60 months. So I'm actually going to. I borrowed 34. I'm actually going to pay back 42 because I'm not going to object to having more money in my system. I'm pretty okay with that. Now, every time I make a loan repayment of $700 in my banking system, I can actually go back right now in this specific policy that I'm paying this money back to, I pay back 700, I can go back and access $1,000 each month. Now take a minute to think about what I just shared. Let that sit with you. Don't steal the P's. Now, heaven forbid, if something were to happen to me, my family receives a death benefit that's much larger than when I put in. It would minus the loan balance of the policy loan that's outstanding and they will own the truck outright. So I'm thinking long range, right? I'm thinking about a future problem that I know I don't have a crystal ball. I don't know when I'm going to be gone, but I've already solved that problem if it should show up. Now, where did the money come from to buy the truck? Who owns the truck and who gets all of the money? Well, where the money came from was the life insurance company. We own the truck. And who's getting all the money? We're getting all the money because it's now flowing back to our system and I was already planning to pay it to somebody else. What happens if I choose to stop or to modify my policy loan repayment schedule? Nothing. I set all the rules. I can increase that payment, decrease that payment. I can stop that payment altogether. I'm not going to get a call from the life insurance company asking me to continue to pay because they know they're going to get their money one way or the other. I'm either going to pay it back with interest, I'm going to, God forbid, become an angel. And they're going to deduct it from the policy from the death benefit. Or if I cancel the policy, they'll just take back the loan amount and give me the rest of the cash that's in the policy. So it's the safest investment the insurance company can make as a policy loan. Now, how much of the money that I put toward the policy loan repayment can I use again?

All of it. I can use every single dollar again, plus what grows every day.

I get the truck, I have all of the money, and I recapture the interest that I Was planning to pay to somebody else. Now, if you can do this for cars, is there anything that you can't do this for?

And the answer is no. So we just have to rethink our thinking. Now, when I access a policy loan, do I pay interest? Absolutely. I do pay interest because.

Just like the grocery store example, I'm going to pay more back to the insurance company than what they loan to me. So they have more capital to put to work to share profit with us. But I get to access every dollar I repay to the system. So I'm just saving more in my own system so I can access more capital later. But think about if you were in a business. If we were business partners and I asked to borrow money from our business, you're not going to let me borrow that money for free because we need to put the money to work in the business. So If I borrow 50,000 from the business, I better put more back than what I took because we can't grow the business if the money's not working there. So in order to be profitable, you bet I'm going to pay interest to the insurance company now. So let's go through this investment case study here. So this is rich. He's a 48 year old professional who has decided to begin saving $50,000 per year. Now, if your number is $100,000 per year, if your number is $10,000 per year, everything remains the same. The numbers just change. Okay, Rich, in his specific situation, he's saving $50,000 per year. And one of his wealth accumulation methods will be to purchase rental real estate.

Now, Rich can save money in someone else's bank or Rich can create his own warehouse of wealth. Now let's help Rich decide which option is preferable. Okay, let's take a look at what's going on. So after two years of saving, Rich finds a rental property to buy. Cause sometimes you know you have to be smart about when and where you buy these properties. Right. Now, who pays for all of the expenses associated with investment real estate here? Smart group. Obviously it is the tenants, if you're doing it correctly. Now, Rich has options here. Rich can use his own cash for the down payment and mortgage the balance, or he can use the process of becoming your own banker. Now let's look at the traditional financing method. So we're going to do cash down mortgage financing. So the price of the property is 300,000. He has a down payment of 60,000 is what's required. He's mortgaging 240,000 and the gross rent is going to be $2,500. Now the mortgage payment is $1,021 per month. And so the annual income of the rental, I think, I think, I believe that's net is going to be $17,748. So that is a gross cash on cash return for rich of 29.58%. And I think he's pretty darn happy with those results. Now let's look at what happens when we use the process of becoming your own banker. First thing is he's putting an annual policy deposit. So he's saving his capital in the policy as premium of $50,000 per year into the participating whole life policy. After year two, his cash value has accumulated to $84,147. And that's growing every single day. Now the death benefit at this time is $913,000. And the loan availability, 90% of the total cash value is $75,732, which is more than what he needs for the down payment. Purchase is still $300,000. We have a $60,000 down payment. The insurance company is currently charging an interest rate of 6 point.

Simple interest. So the simple interest is 32, $33,720, which I'm totally fine with because I get all that money back and get to use it. But that's okay. Like to note that the death benefit is, is collateralized to pay the loan, not the property. So it's the death benefit that's the collateral, not the property. Okay. Now Rich controls the repayment schedule on the policy loan. And his $84,147 is still continuing to grow daily. It does not interrupt the daily cash accumulation on the cash value. It doesn't have any impact on future dividends accessing a policy loan. So same same stats that we shared earlier exist, but now because we're using the process of becoming your own banker, he has daily cash growth. He's using the life insurance company's money to provide for the down payment. His rate, his gross cash on cash return went from 29% to 477.1%.

Now the cash value in year three has risen now to 140,141, up $56,004 now. What else can Rich do with more accessible capital? He can go buy more properties, he can finance vehicles, he can do other things because the cash flow just keeps on growing uninterrupted and eventually he can use those policy cash values to pay off the mortgage Outright if he wanted to. Now the death benefit has also increased in year three, up $90,000 from the previous year. So it's well over a million dollars now. So if death were to occur.

Everything'S looked after. Let's look at Rich's objectives. His objectives didn't change, what changed. It's just the process that he used to achieve the objective.

Where the money is flowing to. So the money's flowing back to his own system. And who is the money being put to work for? Because I own the contract, I co own the life insurance company. The money's being put to work for me and my family. Now is there any downside to Rich becoming his own banker? I would say no.

I wanted to walk you through a client of mine that we worked on in terms of talking about investing less and earning more. And what I'm going to show you is how you can improve your outcomes by not focusing on what you are going to buy in life, but how you are going to go about buying it. So I want you to meet a client, his name's Corey and so let's meet him. Well, Corey's a full time investor. He's age 38 and he gets really excited when he gets to earn a rate of return of 20%. So whenever he has an objective to deploy and invest his money, he's always looking to get the maximum rate of return. And in his case he gets really excited when the rate of return is over 20%. So when he met with me, I used 20% as an example to show what it would look like if all he did was change how he was going about investing his money. And in that same investment, which is exactly what I'm going to share with all of you today. Now Corey, when he came to our sessions and after reading Nelson's book, he was very honest and he said to me, he's like Henry, I understand the long term benefits of IBC and I see that I've got to capitalize my system. I love it, I just want to do it. But I'm really struggling with understanding the short term benefits because I see that once I put my deposit in, even though I can get access to the money immediately, I don't have the access to the full amount dollar for dollar. And in the first few years, because I have to capitalize the banking system, I'm, I'm sending money to build another business of mine, a banking system and build it up to a point where I can do all the wonderful things that you're sharing with me. So I talked to Corey and I understand. And I said, you know, I understand you probably feel that since you aren't getting full access to your money you've deposited, you may feel like it's a compromise. So I said, well, one thing I do want to share is that there's no such thing as instant gratification. And some of the things that are worth considering are going to take time. So I said to him, would you be okay if I share with you that despite you not getting full access to your money in your first year, you're still going to come out ahead? So he's like, sure, help me understand that. So the example I'm going to share with all of you here is Corey's own example, which is the objective for Corey is to invest money. So let's meet Corey's objective.

Now, before I dive into the problem, we have to understand the problem is not the problem. The problem is how we think about the problem. The problem is not the 20% rate of return. The problem is how do we go about funding the investment to get that 20% rate of return. What can we change in terms of the process or way we fund the investment for that 20% rate of return?

So let's improve the outcome by not focusing on what you are going to buy in life going forward, but instead of how you are going to go about buying it going forward.

And everything that we do in life financially is a measure against how someone else is doing it. Everything is comparable, right? If you're doing good, then compared to what? If you're not doing good, then compared to what? Everything is comparable. So is the process of banking that's also comparable. Let's see how we can enhance the return for Corey by just changing his process of investing. We're not going to change his objective. We're just going to change his process to accomplish his objective.

And what's his objective? His objective is to buy assets that produce a rate of return of 20%. So when you now Corey, that has been what he's been normally doing, and you may be doing this yourself already is Corey uses his own cash, which is method one. So if you find something which is worth investing in to earn 20%, you pile up that cash in someone else's bank. And for him, he wants to use that cash to accomplish the objective. So the other thing, the other way for Corey to fund the investment is also use someone else's money, which is using a heloc. Now, Corey has a principal residence and he also has access to the money through his heloc. And when he accesses the HELOC from someone else's bank, they're going to charge him an interest rate of 3%. So these are the two methods that he's aware of and what he uses. So let's see what he's doing presently. And we're going to compare these two methods with what he's doing going forward when he's using the process of becoming your own banker. And once you can see the comparison, then it'll connect with you and you'll most likely see the benefits of doing it this way. So let's talk about the first method. Now, the first one, the math and concept is really straightforward, using his own cash. So if he takes 20,000 of his own money and he invests it into something that is going to produce a 20% rate of return.

He'S going to earn $4,000 in his investment. Relatively straightforward. Okay, so 20,000 times 20%. Now, the next one is he has access to a $20,000 HELOC or a line of credit from the bank which is using his principal residence as collateral. So now he's going to use someone else's money, in this case the HELOC or the home equity line of credit. Now he uses that Bank's money, invests 20%, and still he's going to earn $4,000. But since he's using the bank's money, he has to pay the bank back in interest. And that cost of borrowing, which is 3%, is $600. So his net gain in the transaction is $3,400, because that's 4,000 minus 600 for paying the bank in interest. And whether he selects method one, which is using his own cash or using his. The second method, which is this one, I think all of you can agree that he did great. And that's what he's normally accustomed to when he's deploying his money for an investment. Now let's make it even better, much better for him. So I said to him, well, I'm not going to change the way or the object, sorry, I'm not going to change the objective of the 20% rate of return. I'm also not going to change the amount of money you're going to use, which is $20,000. I'm just going to change one thing. The thing that I'm going to change is the process, the way that he's funding the investment. So let's dive into this. Let's see how IBC can make things better for him. And IBC stands for the infinite banking concept.

So let's say he has that 20,000 of his own money and he flows it into his banking system system first to start capitalizing it. Now that 20,000 is deposited, that goes in the form of premium for the, for the life insurance. Now, immediately at his age and where the policy is designed based on his objective, his starting death benefit is going to be $400,000. Now let's compare that. Immediately when you go Back to method one, he puts $20,000 into his investment. He accomplished the objective of buying the investment, but he's also, he doesn't have any death benefits. So if he passes away when he graduates in a time that he actually doesn't know, and it could be tomorrow, he could get hit by a bus. All he's going to get is that $20,000 plus the profit of 4,000. That's all he's going to get. Well, in one year, when he uses IBC, since he takes the 20,000 and he uses it to start a properly designed policy, he's immediately created protection for his family of $400,000. He's already created something in the future for himself that will be there at starting at $400,000 tax free. So on his death, his family is getting 20 times the money than what he first put in. And from being an authorized infinite banking practitioner, using the way we design the policies, that death benefit is going to increase every year going forward. And that's just when he passes away. So let's talk about while he's alive. So now immediately when he takes his capital funds, the policy first in the 20,000, he's going to get access to his cash and which is known as cash values, which is going to be 10,333. Now in a properly designed policy today, within the first month, that's what his cash values are going to be in his policy. Now, while he's flowed 20,000 into his policy, his money isn't tied up. He can get access to the cash. When you put your money in other investments, it's kind of locked away in financial prison, just like Vernon mentioned. And not only can he access the cash values, he's going to have a daily cash growth in the policy because the insurance company is fulfilling a contractual guarantee. And again, as Vern covered earlier, the contractual guarantees that by age 100 is cash values that must grow to match the death benefit. So every single day as Corey ages, he gets one day closer to age 100 and his cash in the policy will keep increasing $8 per day because of this contractual guarantee. And that's just in the first year. Every year going forward, his daily cash value will become better, but we're just going to focus on the first year. So if his cash values in the policy are $10,333, immediately, the amount of cash value he can access is $9,300 as a loan from the insurance company. And that would be the loan available. So the loan available is 90% of the cash values. So immediately he can borrow $9,300 right away with this particular insurance company that he has a policy with, which is a mutually mutual insurance company which he co owns. The interest rate on the policy is 6.2% simple interest.

So now I'm going to show you what he's going to do. And like I said, he's going to change the process. He's just going to change the way he buys the investment. So step one, he takes his money.

Of $20,000, he uses it to fund his policy, and then step three, he borrows 9,300 to go buy the investment. So let's see if he comes out ahead using this process first, then compared to using cash and heloc. So when he uses IBC again, his concern was that he only gets access to $9,300 compared to the $20,000. So he's using a policy loan of 9,300 to invest at 20%. Now, when you initiate a policy loan, that money comes from the insurance company. It's not your money, it's the insurance company's money. Your money stays in the policy and continues to grow. And in his case, he never interrupted the growth of his money. His money stays growing $8 per day in that very first year when he accesses the loan. The loan on his policy never interrupts the daily cash growth in his values. You know, like when you withdraw money out of your bank account, you get less. You're not able to use that money and it's not able to earn as much for you. So he's using the insurance company's money now and to invest, getting 20% so that $9,300 that he's using over one year, he's able to make 1860 on that investment by using the insurance company's money. Again, 20% is what we agreed his investment can do or what he can do with the investment, since he's used the insurance company's money and who charges 6.2% simple interest, the interest over that year is 500.

So his net profit from the investment by using the insurance company's money is 1,860, minus $576,000. So his total gain in the investment is $1,284. Let's compare. So I said IBC will be better. Right? So he's using his $20,000. He gets a profit of $4,000. And what I want to highlight is whose money did he use? He used his own money. Once he used that cash, it's now tied up in the investment. The second way that he went about it was the $20,000. And from using the $20,000, from accessing someone else's money, the bank's money, in the form of a HELOC, he still will get the 20% rate of return. But his net profit from this transaction because he had to pay interest is $3,400. Now let's look at option three. He took $20,000. He used that money to start a policy first. Then he took a policy loan, and he took that policy loan to make the investment of make that investment. And so from there he was able to earn 12.84 on the investment. His own money in the policy kept growing every day. So you'll see here. And as he used the insurance company's money to make that money, he was able to generate a tailwind of 2009, 20. So in the first year, using the $20,000, the same amount of money he had access to and used, he made 1284 in the investment. And then his policy grew every day at $8 for that full year, for 2009, 20. So overall, he made $4,204. He's just getting started with the policy. And as he allows time to progress while capitalizing his banking system, his loan access is going to be more than the premium at this time. He is increased to 2009 20. Could he take that 200920 and redeploy it into the investment that he knows is giving him that 20% rate of term? Absolutely. And that increase to the loan isn't going to require him to apply for more money. It'll just be there for him, all without having to deal with nosy creditors, private, giving them private sensitive information, begging for money. Your assets, you don't have to give them. Your assets, you don't have to give anything, including the kitchen sink. So if you compare, using his cash, he receives 4,000. He uses his HELOC, he earns 3,400. If he's using IBC, he's earning 4,204. And you know what's even more of a benefit is when based on how he earned the income, he actually, you know, when people talk about investments and their rate of return, one of the things they always forget about is taxes. The CRA wants to tax you on the income that you've earned. When Corey uses method one or method two, if we look at the amount that he's invested to be in an unregistered account, he used this full amount of Money, this full $4,000 is going to be included in his income to be taxed. Well, for the HELOC, this full 3400 is going to be included in his income to be taxed. But if we look at the way that we funded the policy and the amount that he used as a policy loan, and he earned 1284 in his investment, so only that portion that's outside of his banking system is now being taxed for the 1284. And, and the other part, the 29, 20, that's increased inside his banking system in his policy has been growing every single day, $8 per day. And it's not being taxed, it's not taxable, because it doesn't fall into the definition of income under the Income Tax Act. So not only when you, when he sets up his policy following this process in the way that he follow it, not only does he come ahead in terms of the amount of money he's earned, but he's also come out ahead from paying less taxes. I mean, if you look at it this way, is there any way that this is disadvantages? You the only one who gets disadvantages is the banking system and the income tax system. And, you know, I just wanted to share with you that if Corey could do it, so could you. What Corey needed to do, though, was he just needed a coach like myself, like Vern, to help open his mind. And we are here to coach him and you on this process going forward. And what I just wanted to share with you is that you can't get a better rate of return investing into anything without first controlling the banking function in your life. And this is what really resonated with me in my own personal experience when I was first introduced to this process.

And you can get further ahead from creating that financial tailwind by implementing becoming your own banker in your life, personally and or corporately. For every transaction that you have, the need for use of money, someone has to perform the function called banking. And that someone should be you.

You might not have children yet. You might not have grandkids yet or great grandkids, but again, thinking about the future, if that's something that you're planning for, think about your kids. Everything that Henry and I have shared today is going to benefit you in your life by becoming your own banker. But if I can become the banker for myself, there's nothing stopping me from becoming the banker for other family members, particularly my kids. For me personally, this is why, one of the major reasons why I'm doing this now, we've been taught to be divisive in the family. We've, we've been taught, hey, you're going to get your own job, your own bills, your own responsibilities. But wealthy don't think, the wealthy people don't think that way. They think about circle in the wagons and how they can keep more money in the family. This is a photo. I think this one was pre Covid. Jason and his family actually got together to do their annual banking meeting this year. So they were really excited about that. And I've started to incorporate this in my own family and I know other family members have as well. But everyone that you see in this photo is actually life insured and everyone is participating in the family banking process. You can see Jason right here. I think they were on a cruise ship at the time and they've now expanded their banking system. I think they're all the way up to 62 or 64 policies. We're at 11. So incrementally over time. Jason's been implementing this process for the last 15 years. So he's, he's, he's expanded the system that much and everyone is bought in. This is something that Jason shared publicly so he wouldn't mind me sharing it here because everyone's participating in this process. They are recapturing as a family in their banking system. They're recapturing over $26,000 per month. This is payments on mortgages and car financing and consolidation loans and business loans. And all this money would have been flowing away from the family. But it, because they're practicing the concept of family banking and expanding the system, the money's all coming back to the family. So if Jason can do it, if I can do it, you all can do it as well. And I won't get into, I won't steal Jason's thunder and get too much into this story. But unfortunately this is Jason's father in law and I believe it was not last September but the September before he actually passed away. So like Nelson talked about, about thinking long range and about Creating a space to hold windfalls. The death benefit paid out quite quickly and it was, they used that death benefit to repay backfill a lot of the policy loans that were outstanding. And they started more policies on each of the grandkids and they made sure that the surviving spouse was not. Would never have a bad financial day. So this is what's possible by implementing the process of family banking now over the course of your entire lifetime. Think of all of the money that's leaving your family for things that you just need to finance. Things like mortgages, investments, cars, properties, weddings, taxes, tuition, business loans, insurance, personal expenses, business expenses, RVs, vacation, sports. I mean, I'm in New Brunswick right now and it's quite costly to, to, to be here and to, to do all the renting and everything that we need to do. But we're recapturing all of this because the money came from the family bank and we're replenishing that pool. So just think about all your various expenses, the money add up, all the money that you've earned and that you've spent to this point in your lifetime, all that capital, could you actually write a check for that amount of money? Right now, most people would be saying no. In fact, all people would say no. So a quote that Jason coined is, by implementing this process, you can have the banking process work for you rather than against you. And you don't have to get up, oh, by the way, you don't have to get a policy with us or a system of policies with us. There are a lot of good people out there that can help you or that you might want to work with. But there's a couple of things that we want to leave you with as it relates to that. First of all, do not try to do this alone. Please don't do this alone.

Households and business owners who implement this process, and they do it right, they have a good coach. So I recommend getting a coach, and we're going to talk a little bit about that. This is Wayne Gretzky. He's widely known as the greatest hockey player to ever play the game, and he had a coach's entire career. All the best business people, speakers, even ourselves, we have coaches to continue to grow and expand and get better at whatever it is that we do. And when you choose who you're going to work with, here are some things for you to think about. Number one, you've got to be careful about the life insurance carrier that you put your policies with and ensure that the policies are designed properly so you can't just get any life insurance policy with any company. It has to be a specific company and a very specially designed policy. Now, most people who are selling life insurance don't actually have the expertise in this area. So make sure that you are working with somebody who has, who specializes in the becoming your own banker, the infinite banking concept process, that they actually have policies. They can show you what they've done. They can speak from experience. They're not just selling a product. You should choose somebody who is an authorized Infinite Banking practitioner through the Nelson Nash Institute. Basically, when you're an authorized Infinite Banking practitioner through the Nelson Nash Institute, it means that you've actually gone through a course, a curriculum of study, and Nelson's book is one of the core books in that program. But you've actually been interviewed to get to become a part of Nelson Nash's Institute. You've gone through the core curriculum and studied it. It means that you've had a mentorship process of a minimum of one year. That's what we do with our teammates when they come in. We mentor them for at least one year. They strap themselves to a coach and they are on all the client meetings. They're learning how to coach a client from A to Z in this process. So you actually get signed off and authorized as an Infinite Banking practitioner. So there's an entire process to qualify as an authorized Infinite Banking practitioner. You can go to the Nelson Nash Institute, I believe it's infinitebanking.org and you can go to a section that says Practitioner finder. So if somebody tells you that they're an authorized Infinite Banking practitioner through Nelson Nash Institute, you can actually look their name up on the Practitioner finder. And if you don't find them there, that means they're not an authorized practitioner or they're not a member in good standing. The reason that you should choose to do this in your life now is because you deserve the outcome now. And the best time, as you know, to plant the seed would have been 20 years ago or at 15 days old when you're a little baby and you put a policy on your life at that time or your parents do. We can't go back and change the future. So the next best time to plant a seed or plant a tree is right now. So take action. The longer you wait, the more you're going to continue to penalize yourself. So the real questions are, what's the cost of doing nothing? Well, cost of doing it costs everything, right? Cost of doing nothing. Now, what is the cost of just one more year of all of your money leaving your family or your business permanently. That's the key thing. Think about all that money that's flowing through your life today. What's the cost of giving up all of the interest on the money that you could have otherwise earned? We grossly underestimate what that consistent growth over a lifetime can actually turn into. So the difference between you getting stressed and staying relaxed financially is who controls the banking function as it relates to your needs and your life. You don't have to put your money in prison for decades and rely on somebody else to achieve the financial abundance that you deserve today. And you don't have to be rich to become your own banker. This process looks awesome, but how will I know if it is something that's going to work for me? Well, schedule the call. And that's what we're going to do. We're going to take a closer look at how you're structured financially. We're going to make sure that you're properly educated before you decide to do anything. That's the number one step. Get properly educated. We'll look at how you're structured financially and what some of your specific objectives are. And we'll actually work with you to design a program that's going to help you achieve your specific objectives. This is not a cookie cutter program. Everybody's system, everybody's objectives are as unique as your fingerprint. So that's what it's going to look like. So schedule your call. And the primary objective in that call is really to determine if there's a good basis for us to work together. We're actually the ones who are making the buying decision. We need to determine if the person who we're working with has the right mindset. This is not about buying a product. It's about committing to and implementing a process. The product is just the tool that we use to implement the process. So schedule your clarity meeting. This all sounds great, but I don't want to do this alone. Well, that might be you. Well, here's what you, what you get when you work with our team. You get a lifetime of mentoring and coaching. We have quarterly group coaching sessions, and we have ongoing. We're constantly producing content. We have audio, we have books, we have YouTube videos. And I'm gonna show you some of those resources right now. So this is the banker's vault. You can see that we have over 3,500 subscribers. And I think around this time last year, we only had four or five hundred. So the, the channel's always expanding and adding more and more subscribers. So you can feel free to go and subscribe. But you can see here, if I go to videos, you can see my smiling mug there. There's Henry and I on a video together. Henry's put a ton of really valuable content on here and as does all of our teammates. Now I'll give you an example of something that you could do. You might say, gosh, I want to learn about how to get out of debt. How do I get out of debt? Well, you could type debt in the search here. That's a keyword. And all of a sudden you'll come to many, many videos and playlists that are get out of debt and stay debt free in Canada. You might want to learn about how do I use this process for real estate?

And you can type in real estate and then all of a sudden all kinds of videos that will, that are related to real estate specifically will come up. So that's really good. This is the Ascendant Financial website. And first what I'm going to do is go to shop because here are some more valuable resources. Again, you've already got two of our three best sellers. You've already got Nelson Nash's book, which is the granddaddy of them all. In my humble opinion, the and Asset is an excellent resource that really just expands upon everything that Nelson shares and the tool, the whole life, participating, policy, and some of the advantages that come with that uninterrupted growth and the unseen wealth transfers. But there's so many good resources here. Nelson Nash has another book called the Warehouse of Wealth. We have all these books available to you on our site that can be shipped anywhere in Canada. And in fact, like I said, you can ship one to a friend if, if you choose. But you can go on the video on the site and see some videos or the books that might stand out to you specifically. Not only do we have all these resources available for you, we also have coaching. We have a client portal that you can take advantage of as a client. You'll become a member and get a client portal, which I'll touch base on here in a moment. And you'll actually be assigned a coach. You'll work with somebody specifically on our team. But we are a team. And that is the most important thing to know that you're not just working with Henry or Sarblo or Dan or Vern. I mean, Henry and I meet, we collaborate often. We build content together. We work with clients together. Myself and Sarblo and Dan or whoever. Sometimes there's Another teammate on our team who has a specific skill or something, an experience that they've had that they're really good at. And you know, I might be working with you and I might say, hey Henry, I've got a tax situation here, Gosh, I'd love for you to join me and my client and have a good conversation about some things that we can do together, right? So we get to actually leverage each other's talents and our experience as a team. Here we have my smiling mug. We have Dan Allen, Peter Lout, Roman Pushker, Jing Jin, Henry. We have our teammates from Quebec, Michael and Joseph. And then we have Jason Lowe, Sarblo Gill and Richard Canfield. We have a client success team who is dedicated to working with you, helping you complete all your life insurance applications and making sure that that process runs smoothly, completing all of the follow up. We have our teammates who are strategic assistants who many of you have already maybe been in contact with. My personal strategic assistant, which is Ashley here. And we have many, many teammates. Like things don't happen in the background. We're the front faces, we're the front stage here, the advisors, the coaches. But nothing happens in the background without these valuable teammates. We have our operations team. Devin was on the call earlier. You might not have seen him here, but he's the one who helps us set up all the automation and make sure our webinars are on track and all those kinds of things. Moses is responsible for our website and all. Rebecca and Jen and Agatha and Emily, they're all playing a role. And we also have strategic partners. Tim Dawson is a chartered accountant. Frank Abate, I work with Frank very, very often. And so he's a trusted estate planner, a certified financial planner, chartered accountant and trust and estate planner. So he, he really knows his way around all the corporate dealings and making sure that we're setting up things from an estate planning perspective. A few of us wear different hats. Dan is our compliance officer, making sure that everything that we share is on side with regulation so we're not speaking out of turn. Then we have our executive leadership team as well. So we have a full team here ready to support you and make sure that you're receiving good value and that you can actually implement the process of becoming your own banker. The infinite banking concept. Here's a look at our client portal. So this is not accessible by the general public. This is, I understand that we are, we may be releasing a subscription basis eventually to the general public, but as of now, this is only available specifically to our clients. So there's a whole, you know, welcome page here. There's a getting started section, there is administrative guide. And I'll just quickly show you a few things that you might be able to find here. Of course, we're always here to coach you and support you and guide you along in the process. But the key title, the key words in the title are becoming.

Your own banker. So we're here to coach you to get creative and expand your system and find new ways to apply it. And if you have ideas, you bounce them off us. That's what we're here to do. And that's why we, we're building so much great content though. And our client portal is to empower you, give you the tools that you need to be your own banker. We want to coach people to be more independent rather than what we've been taught to do is have more dependence in your life. So you might think, oh, Vern, there's these quarterly coaching sessions. A lot of them have already happened. Oh, I missed out on that. Well, I've got good news for you. These are not accessible to the general public, but they are accessible to you once you become a client. Because we have an FAQ section here. We have a whole presentation on family banking and a sample loan agreement. Really important. If I'm going to lend money to a friend or a family member or somebody who's a good fit, I'm going to have a loan agreement just like a commercial bank would. Our previous webinars are all recorded here. We have other case studies and different videos and information that you may find valuable. But and then a lot of other things down here. But what I wanted to point out specifically is this client coaching sessions. So we have all of our past coaching sessions here ready. We also want to make you aware of the Nelson Nash documentary that Jason Lowe and Richard Canfield and a couple of other teammates helped or actually were responsible for putting this film together. And this is an hour long documentary that really dives more into who Nelson Nash was, what he stood for and, and where the process of becoming your own banker came from, what his intentions were behind it. So That's Nelson Nash Film.com it's this slide's actually a lie. It's inaccurate. I apologize. We do not have 365 five star Google reviews. We have well over 500 five star Google reviews. I think we're at probably over 600 now. And those Google reviews are accumulated geographically. So we have many, many Google reviews in the GTA area. So you can certainly leave us a review and just talk about your experience so far, having dealt with us, what value you've received, what you're looking forward to. But we have many, many five star Google reviews left from all over the country which we're extremely grateful for. And here's just a look, I'm not going to go through all of these, but here's just a look at some of those Google reviews that we have received up to this point and many they're climbing on a daily basis which we're extremely grateful for. Now just think for yourself. If all this process did was to keep more money in your family and in your business, would it be worth it?

If this helped you create a if the process becoming your own banker helped you create a peaceful, stress free financial life, would it be worth it? That's the power of commitment. I always often talk to people about the difference between being committed to things and being interested in things. When you're interested, you let life get in the way. When you're committed to things move out of the way for you and things start to happen. So that's the question is are you, are you committed? Now here are your options. As you know, there's no pressure. There's no it's completely up to what you want to do. You can do nothing and nothing will change and you'll continue to work your butt off and all your money will flow to somebody else's bank and everyone else will continue to keep getting all your money. Or you can schedule your Zoom call and take a hold of your personal finances and put control back into your hands. So the question is, if you're committed, what would you do? And are you committed? I want you to picture a day. Picture a day when financial control is in your hands. Not the banks or risky stock market or the government. When your spouse says thank you. Thanks for not making me wait 30 years to enjoy the lifestyle we want today. And I always share that. I've personally experienced that and it's just warms my heart every time I think about it. When your finances are exactly where you want them to be, when you know with certainty that you have the freedom to travel when you want to travel, relax. When you want to relax, and you can serve when you want to serve. You need the use of money until the end of time. It's as simple as that. Nothing happens to the flow of money without the function of banking. It's the most important business in the world. You need to exchange money for goods and services, investments that you need throughout your lifetime. Remember everything that you find everything that you purchase is a financing function. So it doesn't matter if it's goods or services or investments, it is a financing function. This is a quote from Sarblo Gill, one of our great teammates. He said, in life, payments are not going to end, but you can certainly change who is going to get your payments. That somebody should be you.