Never Worry About Money AGAIN With THIS Financial Foundation​ (Canada)

You have to be continually exposing yourself to the process. And the best way to do it is to simulate it. That's the best way to stay engaged because otherwise you could lose that sense of it. And now you're just looking at the policy as a product. Hey, I've got a product. What should I do with it versus I've got a warehouse of wealth that's producing live steam. Do I want to accelerate the steam or do I want to cap it off and shut it down? Do I want to slow it down? Well, if you still need to use some money, A, you shouldn't be slowing it down, you should be speeding it up. And B, you've got to. You're the one that has to become your own banker.

Nelson describes in his book titled becoming your own banker. And there may be some new folks to the community who are either maybe have heard about the book or maybe just recently purchased a copy of the.

Book and, or they were waiting for the last two months for stock because we were out of stock for the book.

Yeah, the paper mill that supplied these books to the Institute actually went out of business. And I thought to myself, gosh, this book sold more than a half a million copies. How can the paper mill be going out of business? Like, they should be expanding their operation to keep up with how many of these we need. But we fully restocked. This is my original copy that I got many years ago. And one of the things that really strikes me in the book is when Nelson talks about, and he would expand on this when he would, you know, meet with us Rich, he would meet with our client community. And on page 15 of the book, he's right in the grocery store example. But in the bottom right hand corner of that page, he talks about a phenomenon in physics. And what he's describing here is that he said, look, I want you to take a pail of water to seaside. I want you at sea level, I want you to heat it up to 210 degrees Fahrenheit. And all you have is very hot water. But if you heat it up to 212 degrees Fahrenheit, you have live steam with unbelievable power. The steam engine changed the world, but it doesn't happen until you get past 212 degrees. Lots of heat goes into the process up to the boiling point, but the dramatic power comes suddenly. Now, what he meant by that is when you're, when you're capitalizing, you're putting in money in the form of premium. You're following Nelson's golden rule. Which is don't be afraid to capitalize. Now he has five golden rules. And Rich, you're going to love this. And I honestly did not know this. Nelson never mentioned it this way. But I was talking to David Stearns earlier this week and he told me at the end of our call, he said, hey, I wanted to tell you something. I said, what? He goes, you know the fifth golden rule? I said, yeah. He said, rethink your thinking. I said, yeah. He said, that came from you.

Wow, that's awesome. Isn't that amazing?

My heart almost burst with joy and gratitude because in one of the talks at the think tank that had come up where we were talking about you have to. And this has resurfaced recently where we talk about developing the ability to rethink your thinking. It's one thing to say it, but it's another thing to develop the ability to do that. And David told me that Nelson latched onto that and said, that's the fifth golden rule. I never knew that. Nelson never told me that.

Wow. Fantastic. Yeah. And for those of you listening in, David Stearns is Nelson's son in law who is now the president of the Nelson Nash Institute. And we've had some, we've had some great presentations done by him over the years. Of course, we've had two amazing podcast interviews. I think some of our best podcast interviews that we've done on the wealth of Bay street podcast have been with David because of what he's able to share from his personal life experience. Spending so much time with Nelson and how they've really embraced this process as a lifestyle, in their family's life and yeah, really, really amazing, wonderful guy. I can't wait because we're gonna go see him next week in a couple of days. I'm so amped up to get to go down to Birmingham, Alabama and be with our, with our friends and our colleagues. Yeah. Our fellow practitioners of this process. We have some wonderful people we get to go see when we go down there and pretty amped up about it. And Jason, you get to talk a little bit about the family banking meeting and how you host that and conduct that and you're going to be sharing some of the things that you've learned in that process with the members of our, of our institute so that, you know, maybe there's some things they can take away and begin implementing with their own clients and in their own lives. It's going to be a lot of fun, I think.

Absolutely. And I shared, I shared with David that, you know, all the credit for developing the ability to rethink your thinking goes to Dan Sullivan. It was Dan Sullivan who inspired me with his encouragement to set about doing that and that you've. Because he would talk about, you know, he would say the problem isn't the problem, the problem is how you're thinking about the problem. And so, so David Stearns was like, yeah, yeah, because you chatting about Dan Sullivan and that's come up in a few talks. And so I give credit to Dan Sullivan completely for that. And I shared with David that if Nelson and Dan had had the opportunity to meet, they would have been kindred.

Spirits, you know, and fast friends for sure.

God, all day long. And so it's just a moment of serendipity, as Nelson would say. And, but going back to the, to.

The something you mentioned here, Jay, I just want to bring it up here. So I don't know if you can see that. This is my copy of, of the book and Nelson signed this book in February of 2012. So 10 years ago is when I had this book in front of Nelson to get a signature on it. And that came up for me here to the other day as well. And so it made me think fondly of Nelson and just remembering the very first time we sat through his seminar and how incredibly impactful it was to just to be in his presence and to hear him deliver and.

The, the uncanny ability he had to convey a message is just, it was awe inspiring. Really.

Absolutely, yeah. This will be our 11th consecutive think tank.

11 I, I missed one because my son was born.

This will be my 11th.

Think tank but you know, the time, the time flies by so quick and yeah, and it's a just an honor to be able to contribute to the community and so I'm looking forward to that with yourself, Jen and I on, on stage together having a great conversation and sharing some really good value with the community. And what I wanted to talk about was the phenomenon in physics that Nelson was describing because just to give folks maybe a bit of a glimpse into what we coach when we're talking about that. Here's what Nelson was referring to when he talked about this phenomenon in physics and how the dramatic power comes on suddenly once you get to 212 degrees. Now I'm not sure if I'm able to, to annotate on here, but if I'm not, forgive me, I'll just highlight things. Nelson said that if you show me somebody who pays premium for a period of seven years, so you can see alongside here in the cash premium Column, we have seven years of premiums going into the policy. And Nelson would often say, show me somebody who's paid premium for seven years and I'll show you someone who's conquered Parkinson's law, which is something that Nelson describes in his book becoming your own banker. And here's what I want to point out when you look at this policy. So, Rich, if you took a look at the cash value, the increase in cash value from year 7 to year 8, can you help me figure out what that annual increase in cash value is?

It looks like it's about $13,000, maybe a hair over $13,000.

Okay, so this policy at this point has achieved 212 degrees, because after that seventh year, I'm showing that the minimum premium, so you can see the amount that he was putting in was 40,000, but the minimum amount required was only 10,433. And so that's being covered through a combination of dividends and paid up additions of death benefit, which you can see me highlighting here. But the total cash value continues rising every single day uninterrupted because it must grow on a daily basis so that by age 100, the total cash value and the total death benefit are the same. So let's just scroll through.

Well, before you go there, Jay.

There we go.

Look at this. Oh, yeah, they're both the same. And so let me go back up here. Let's go back up. Way up. There we go.

Go ahead, Rich.

Now, the cool thing about this is that if you, you know, you're showing that potential of, okay, we stopped paying in year seven, which year eight, I should say, which we wouldn't recommend anyone to do, you always want to continue paying. If you had a machine that's producing the way that this is, you wouldn't want to stop putting energy into that. You wouldn't want to stop putting fuel in it. Totally. But the year prior to that, they put in 40,000 and the increase was 50,000. So every time you put in 40 into, into a bank and at the end of the year there's 50 in there, that's the kind of account I think you would want to continually contribute into because it's doing that repeatedly for the rest of time. As long as you're taking air into your lungs, why would you ever want to stop putting money into something that does that for you?

That's a great point. And so Nelson says, listen, in the early years, as you're depositing premium into the policy, what you're doing is the equivalent of Being at seaside with that pot of water and you're starting with room temperature water and you're gradually increasing the temperature of that water, and when you get to 210 degrees, all that you have is a really hot pot of water. But once you get past 212 degrees, you've created live steam. And that's exactly what's happened inside of the policy that the policy illustration that you're seeing here is that live steam is being created. But to Richard's point, if you really want to follow Nelson's golden rule, one of five golden rules, which is don't be afraid to capitalize. Richard just gave you a sharp example of what not being afraid to capitalize looks like. Even if after that seventh year, if all, in this case the policy owner's name is Ted, if all Ted did was deposit 10,433 out of his own capital, then the annual increase in the cash value is going to be even greater than what it is with Ted having no capital outlay and the policy taking care of the minimum required premium through the dividend and a portion of paid up additions. So this goes on to further highlight the key that I wanted to share. And that key is that the policy owner's behavior is far more critical than the behavior of the life insurance company. I'll just repeat that one more time. The policy owner's behavior is far more critical than the behavior of the life insurance company. The illustrated values that we looked at there, that just shows the insurance company administering that contract all on their own. But if Ted decides that he wants to exhibit the behavior of being the banker in his life and recognizing and honoring that his capital must reside somewhere. Well, what better place to have it reside than inside of an entity that is producing live steam? What would he rather do? Take that money and put it into something else that is at room temperature? Or does he want to take that money and put it in right to fan the flames of that 212 degree live steam that he's created? Well, of course you want the money flowing in to where it, you're already producing live steam. And so it's, it's just remarkable when we, we talk to even existing policy owners, right, you can fall back into that old way of thinking. Hey, well, yeah, I understand. Jesus. I remember you were telling me something about year seven, I can stop paying the premium. Well, you didn't remember everything I said. What I said was, is that you possess the contractual authority to do that. But the question will be, will you want to do that. When you see what happens if you continue depositing the premium, we don't want you to stop capitalizing.

And when people say that they're thinking of stopping, it's a direct indication that they haven't been reading the source material because that means that they've completely glazed over pages 48 and 49 in Nelson's book and page 85 of Nelson's book. Point number two, if you're new at passive income time, you would get back every single dollar you put into a system potentially tax free. Would you ever object to putting more money into it? So when you, when, when our brain. And the reason that that can happen for people is because we are constantly bombarded by marketing from all other areas of the conventional financial system. And then additionally we bump into people, we have friends and family that we still interact with and they may not be receptive to learning this idea. And so what happens is they're stuck in their paradigm and they try to infuse their ideas onto you, even though that you've chosen a different path. And then what we get, you know, it kind of puts us out of place. We can get a little discombobulated with all that. So it's really important that you become active in the community. You become engaged in the client membership portal that's been put together by a senate, but that you listen to materials like our videos on the Bankers Vault and read Nelson's book. If you, if you did nothing else but just read from the source material and you read Nelson's book a minimum of one time per year, ideally you, you read it from it, maybe a couple of pages a month or something, you got something to chew on. It keeps you in energized and invigorated and it sparks your brain into action mode because it shares new possibilities of thinking that weren't available to you. Like, our brain is a very powerful tool. It's malleable. And when you feed it the right information, it has an ability to go out and like attract new things into your life. And as far as I'm concerned, Nelson's book is the right information.

What Nelson talks about again in his book, and he's in the equipment financing example and on page 58, he says, actually this interest is not really interest. It's additional premium that has been paid into the policy that equals the interest that was being paid to the finance company that is the reason that it is adding to the cost basis of the policy. If you have trouble understanding this, go back to the grocery store on page 15. If you still don't understand, then contact me. Well, inside of this policy, with Ted, if he took out a policy loan, or if he collaterally assigned this policy to a commercial bank, we prefer that he access the capital through a policy loan. If he says, look, I took out a policy loan or I have plans to, I'm going to take out a loan for $150,000 to take advantage of a real estate investment opportunity that has tracked me down. While he now has a system to flow capital back through his policy, and it should be going back through as a combination of policy, loan repayment, and then the extra interest that he is capitalizing his system with, it should go back in to the policy as premium. So in the eighth year, if he decided to, hey, look, I'm going to cover the minimum required premium. I'm going to keep doing that. But I also have $4,000 of extra interest that I want to pay back into my system. Well, that extra interest is not really interest. It's going to go in as additional premium. So instead of 10,433 going in, he's going to have 14,433 go in. What is that going to do to the rest of the numbers in the cash value and the total death benefit column for the rest of his lifetime?

Rich going to ramp it up and it becomes even more efficient. And every single dollar of financial energy that enters this machine is now actively working for him for every single day that he's alive on planet Earth. And the day he walks off planet Earth, which will happen, more capital is available for the people he loves or the things he loves and cares about. He, or in this case, it's Ted. So he, no matter what, by making that voluntary decision. And here's another thing. I was looking at that, that same chart. And so, you know, right up until that point, there was about 299in the, in the cash bucket. So let's say he, let's say he had a mortgage, primary mortgage, and he wanted to get rid of that mortgage, and it was around 250,000. He goes and takes a policy loan and he just, you know, pays off the loan in one shot and says waves goodbye to, you know, his commercial bank. Now, if he was making a $2,500 a month mortgage payment to them, he could redirect that financial energy to the, to the policy. And he could do it in a couple of ways. He gets to decide. He could say, I'm going to take a chunk of this and I'm Going to allot it to paying the premium that I, that I was, you know, the 10,444. And I'm going to take the other chunk of that mortgage payment that I was making and I'm going to use that to repay the policy loan. He can a structure and dictate that however he chooses. And again it's, the key is that he's taking the same. He made a commitment to have money walk out the door to some third party bank for a very long period of time. He had an amortization that was going to happen no matter what. If he does not take that same payment allotment, at least that amount and redirect it to a, to a system he owns and controls, he's not being an honest banker.

The late Bob Shields, you know, who we met before, you know, we ever met Nelson. The late Bob Shields would say, if you truly want to save money, so if you're, if you're a saver, if you really truly want to save money, repay policy loans.

Such a, such a powerful statement. Because if Ted, at that seventh year, if he already had a policy loan balance outstanding of 250,000 bucks because he took advantage of an opportunity, or like you said, he extinguished the mortgage on his principal residence or on a rental property or combination of both, if he wants to not be paying premium, well, he can't offset the policy.

What he needs to do, if he collaterally assigns it to a commercial bank, the commercial bank will take over that loan balance. And the best thing that he can do is repay that loan balance. That's the best way for him to save money so that when he gets to the tail end of it, he can release the assignment and take control of the policy again if he chooses to do that. Or he can maintain access to capital from someone else's bank, which wouldn't make any sense. If he's planning to resume the repayment of, or resume the payment of the minimum required premium, he should take over the assignment of the policy again. So you, there's a way to navigate those traffic cones, but you have to recognize that you're the, you can be the banker in your life. And when you choose to do that.

You'Ve got to, you have to be continually exposing yourself to the process. And the best way to do it is to simulate it. That's the best way to stay engaged because otherwise you could lose that sense of it. And now you're just looking at the policy as a product. Hey, I've got a product. What should I do with it versus I've got a warehouse of wealth that's producing live steam. Do I want to accelerate the steam or do I want to cap it off and shut it down? Do I want to slow it down? Well, if you still need to use some money, A, you shouldn't be slowing it down, you should be speeding it up. And B, you've got to, you're the one that has to become your own banker. It's not Nelson described in the book. He's like, hey, if you get to a point where you've borrowed everything that you can access in the policy and you're unable to pay the premium or something happens that's on you, that has nothing to do with anybody else.

You're. And it doesn't happen overnight. That circumstance doesn't happen overnight. That's, that's a combination of probably accumulated years and you know what, things happen to people, Bad things happen to people where it does cause issues that we have to recover from. We've all been in that situation. Yeah, but if you don't notify your coach, the person you're working with, they have no ability to help you. The time to talk to them about that isn't, isn't when your back's against the wall. It's when you see that there's a truck on the other lane coming towards you. Now it's time to make, pick up the phone and say, hey, I think I'm going to get into a bit of a financial accident here. Can you give me some ideas and some guidance on how I can fix this problem I've created for myself?

Absolutely.

You got to get ahead of that sort of thing by being proactive, not reactive. Don't operate your financial life in a reactive way. That's part of what our training and our coaching and our, our membership portal. All the resources that we're building are to help you get into that mental state of proactiveness around all of your financial decisions. A young gentleman reached out to me recently. He just shifted from being, he's, you know, it's in a sales position. He just shifted from being employed to now being able to set up contracting to the company, a long term company. And he got great bonus from his sales, pretty consistent, about $20,000 a year, has no coverage, no insurance, young family and he knew he needed coverage in insurance. And now he's going to be getting paid into a corporation, which is new. He sought coaching and guidance because he knew I already was, was familiar with that. And the end result is we're going to be able to apply this capital into a policy for him. He's going to be able to save and maintain it. Versus their plan was to take that 20,000 of financial energy and pay off a couple of debts. That would have been a permanent transfer away of that capital and he would still have no coverage for his family. Right now he's going to have well over a million dollars of coverage for his family and he's going to be able to input that capital and have access to approximately, I don't know, 13 grand or something, give or take, that he's going to be able to utilize to pay off two credit cards which he wanted to get rid of. $400 a month. The credit card payments that used to go out the door is now going to go back to his company as a repayment into the policy.

Yeah.

And he knows he needs to set aside for his GST and his, his taxes and everything for the upcoming year. He's going to commit to sending $1,000 a month into a separate account for that which is going to be there to help fund the policy and give him access to pay the tax bill, which is still a bit of an unknown event. But he's controlling the circumstances now right out of the gate because he thought enough about reaching out to someone and engaging in conversation to see what was possible that he himself could not see.

We'd love to hear your insights, your thoughts, your requests on topics that you would like us to chat on. And hey, if you'd like to hop in and share your experience with the process or just get involved in the conversation, just let us know. We'd love to have you be a part of it.