Tax-Free Retirement with the Infinite Banking Concept

Lets face it, Canadians get taxed to the nines. It sucks. So wouldn't it be great if you could create a tax free retirement as a Canadian? Well, it turns out you can do that, you just need to know how. And if you can keep that ugly monkey of the taxman off your back for a little bit longer, well that's going to be pretty good too. So we're going to talk a little bit about that. And we had some questions that came in, some frequently asked questions as it were. We're going to walk through them. I'm joined today with my good friend Ver McCarty, an authorized infinite banking practitioner. My name is Richard Canfield. I'm also authorized. Look at that. We're going to have a fun chat all about tax free retirement in Canada. In fact, we're going to go through a little example based on one of the questions that we received. So I hope you enjoy it. And if you haven't already, make sure you hit that subscribe button and make sure you check out watchibc.com for more great content. So Vern, let's get into tax free retirement with the infinite banking concept in Canada.

Happy to go through some examples, talk about what's possible here. And that's all it is, is what's possible. But you made a really good point before we started recording, as you said. Yeah, you know you can, of course you can use the infinite banking concept or the, the tool, the whole life policy as a retirement vehicle, but it's kind of a short sighted view in terms of what's possible. And maybe as we go through we can just expand upon not so much the numbers on that, but the thinking behind that kind of context as well. It's like yeah, you can use it for retirement, but just focusing on the retirement, you might actually be missing some opportunities that could be presented as well.

Yeah, any numbers that we go over, in fact in any of the kind of case study work or videos that we have on our channel, they're all meant to be an inspiration. They're there to help dislodge your brain's ability to think and then start to give you a reference point. So no different than what we're going to do today. Just consider the reference point and really what's more important is the questions and the conversation that we're having and how it ties to and connects with some of those numbers. So we're just going to go through the list. We had some questions that came in and we received lots of different questions. So that's really what today is about is answering a few of those things and hopefully you guys will enjoy what we have to say. So one of the first questions is about tax free retirement with the infinite banking concept is what age is the best to start? Now? This is a pretty generic question, as are many of the ones we will cover today. And so it's not clear if this person's asking what's the best age to start the policy or to start a system of policies or to start the process or if it's the best time to start, maybe drawing retirement income. So let's start with the policy. What would you say to someone, Vern, when they're asking you what's the best age to start?

If you could catch it, start at 15 days, that would be really good. 15 days old. Or to your point, I'll just steal this rate from you, Rich, start ASAP, start yesterday, start 20 years ago. But we can't jump into DeLorean and pay premium 20 years ago. So the best time to start is right now. Wherever you're at whatever age you are, get started right away.

Get started meaning get started, get the education you need. Verify this is what you want to do. Very simple to do that. Your first step in the process. Order the book that Verne just held up, becoming your own banker. There's a link in the description below and you can go to watchibc.com that's watchibc.com and you can get great content. You can learn. If this is the right fit for you, make that decision. But the key is to make the decision. And as soon as you've made that decision, boom, book a meeting with a coach, boom, get up and running. That's the key. So let's, let's look at the other flip side of that question. You know, maybe this question has really had to do with when's the best time to start taking an income stream like a retirement income? Again, if you've watched any of our content before, you know that we're not a big fan of the word retirement. I think it's actually the dirtiest swear word in the English language. But so we talk about passive income. You know, Nelson Nash, who, you know, invented this idea, he was all about passive income. And absolutely you could take a passive income, but he really wanted people to think through how you could do that. And so there's lots of way to utilize a policy. The policy itself or policies can be the machine or the, the, the asset that is used to create an income stream. But in the earlier Years of the policy as you're, as you're building and you're growing and you're doing things, wouldn't it be much better to start using policy to go and build and create other assets that also produce a cash flow? Things like our rental properties or a business or whatever it is that you can think of, whatever zone or track you want to go down. Ideally, it's something that you know a great deal about. Nelson Nash would say that an investment isn't, you know, isn't a stock that you buy or it isn't a piece of real estate. An investment is in something you know a great deal about. Anything else is considered speculation. So it should be something in your zone of genius. Now, if you do that and you create other assets and other things that produce an income stream, then you don't really need to use the policy for that purpose. And then it's there as a backup. It's there to support in the background everything else that you've built and accumulated because you've been using it effectively through the good coaching and guidance that you've received. But if you haven't done all those things, then you still have the ability to use the policy and it's a, it's a great asset that can be used in that, in that way. So when's the best time to start? Well, I would say when you have enough money in there or you, or you have something producing the cash flow that you want to create the income stream that you're looking for. If you're starting this, you know, starting and you're in your, let's say you're in your early, late mid or late 50s and you haven't put anything away for a retirement account. I mean, you've really got to start getting to work because you know, you're, you have a looming date ahead of you that you need to start making sure you have something available to help support that initiative. And you can't make up the time by going like Vern said 20 years ago. So you got to really kick it into high gear and get started. Now, the good news is for most people, that's typically in your highest income earning years. And so you should be able to put a lot of capital away. In fact, many people do.

Your situation is what your situation is and you can only do, you know, with, you can only do what you can do with what you got to do it with.

Right?

So that's kind of how that works. But what I like about what you were sharing earlier, Rich, is we Started the video by saying, yeah, you know, you can use the system for tax free or potentially, you know, tax advantaged income or whatever in the retirement years or passive income years. But you already kind of started to outline some of the things that people can do, the opportunities they might be missing. That context, we were talking about the thinking, oh, well, I'm building up to my 10 or 20 years down the road when I'm going to start potentially pulling money out of the policy. Well, what about between now and then? I'm storing capital in the policy. I can use values from the policy to acquire other assets. That's going to create more wealth, create more income for those retirement years without interrupting the growth down the road.

Right.

So if we actually use the concept, the process of becoming your own banker, the infinite banking concept in Canada properly, we might not even have to use the policy for income. We could just have that, like you said, as a backup. It's a floating fund, it's an opportunity fund. It's a, I don't like to use the word emergency. Let's call it a contingency fund. It's just there available for you for when opportunities track you down or some surprise expense shows up or, oh, we're talking about income, right. What about the concept of family banking? If you're in your 50s, 60s, 70 years old, aren't you going to have kids and grandkids who are going to need the financing function for their entire lives? If you can become your own banker, is there anything preventing you from becoming the banker for other people, captive customers in your family who are going to need car financing? They can finance it from any other bank or any other dealership out there, or they could just finance it from the McCarty family banking system. Hey, if you don't have a family banking system, they can certainly knock on my door. And if we qualify them, then maybe we can do something for them as well. We'll happily take the cash flow. We're happy with that.

Mortgages, vehicles, businesses, there's lots of different things that require capital and there's lots of people that you probably know. So even if you don't have your own kids or grandkids, do you have nieces and nephews? You have extended family members, they have needs and those needs can be supported. They're actively using someone else's capital now, right? You could be that someone else. And if you do that and you do it where you're taking security, you have written loan agreements, written contracts that are signed and dated. They're legally Binding. You can take, you know, security on title to a piece of property or whatever. There's a way that you can mitigate your risk. Again, that's learning, knowledge, coaching. You develop that over time. But now, just imagine you had seven kids and grandkids, all with cars, and they're all making a car payment to you, and that car payment is $500 a month. That's $3,500 a month. Now, if you access capital off of a policy system, maybe you're not paying those loans back right now, and you're just taking the $3,500 a month in income and you're spending it. You can do that again. You get to dictate and control some of the structure of what happens here. Now, now you go get a mortgage for somebody, you go buy out their existing mortgage, and you take it over, and they were already making a $3,000 mortgage payment. Well, that $3,000 mortgage payments now coming to you, maybe it's 30, 200 bucks. Maybe it's 3,500 bucks. You're controlling these dynamics by being able to be a steward of that capital. And if people know, as an example in kids and grandkids situation, we have a few videos. Vern, I think you and I both talking about some of the vision that we have for our own families. Yeah. Well, you know, if my kids are going to make a car payment to me and a mortgage payment to me to the family bank, I shouldn't say me to the. To the Canfield family bank, they're going to get that money back when I'm gone, it's going to refill. So whatever they make as a payment, they're going to get all those payment streams back the day that I walk off planet Earth, and that's going to refill the tank. In which case, if they know they're getting all the money back, would they care about the interest rate? Why would they care? If they're going to get every dollar back? Right. If they're going to get every dollar back, do they want to put in more dollars or less dollars? I think they would have want to put in more dollars.

Yeah. And if it was easy for them to, let's say, finance a vehicle today and then, you know, make those payments back to the family system, well, now they need to start a business or get their second car or put a down payment on the house or finance the entire house. Can't they just come right back to the family bank and follow the same process? They don't have to jump through all those hoops that they have to jump through when they're trying to tap into somebody else's pool of money. Now, a word of caution. You did a great job of saying, hey, you should get contracts, you should have an agreement in place and all those kinds of things. If your long lost nephew or cousin is well known for defaulting on loans, he's been kicked out of the house, he doesn't have a steady job, would that be a really good candidate to have as a borrower from the family bank? Probably not. So you also want to be a bit mindful of who's following the rules and who's receptive to the concept and they understand the value of actually putting money back into the system and, and what's going to happen down the road. And also Nash's golden rules, right? Think long range. So it's your family bank, it's your system, so that's up to you to kind of operate all that. But again, with some good guidance from a coach.

Right, Next question we got on here. So what about if you're close to retirement, can you still buy an insurance policy? In other words, can you still get approved or acquire an insurance policy and is there an advantage to do so? So if you're, you know, if you're close to retirement or you're at retirement and you're, whatever in your, let's say you're in your early mid or late 60s or you're even in your 70s, can you still get a policy? The answer is yes, as long as you're healthy, as long as you're insurable, then you can get a policy, whatever policy you're going to get. Whatever dollar you put in, let's say you put in 10,000 bucks, you're going to get less death benefit than a person that's younger than you. So if I'm putting in 10,000 and a person at 70 is putting in 10,000, the 10,000 is the same, but the starting death benefit is much lower because you're much closer to, you know, your final days on planet Earth, right? So you can still get one. And the cash growth and accumulation is reasonably similar between these things. However, the younger individual will have more time for growth to accumulate. And so over time it'll do better because they have more years left. That's the only real difference.

If you're growing money in a savings vehicle, what do you need? You need capital, you need time, right? The more you put in, the longer you keep it there, the more it's going to grow. So if I'm 30 or 38 or 40, the 40 year old is going to get a better result because they have more time potentially for putting the 10,000 in. So if I'm 60 and I'm starting, it just means that I need to capitalize more heavily to get the same result because I have a shorter time window before I'm going to start accessing the money. But I would say that, yeah, there's a huge advantage of getting started. Of course we have to look at your specific situation and all those kinds of things. But the money's got to come out, it's got to go somewhere. You might have other savings vehicles built up, you might have other income streams, you might have RSPs or whatever it is. You're taking all that money out. And generally what we're doing is we're using it. This is a crazy concept, Rich. If you think about the traditional retirement plan, what do they tell you to do? They tell you to pile up as much money as you can and hope that it grows and give use and control over it to somebody else, put it in somebody else's hands. You literally have to hope that you've piled up enough to last you. You're hoping that you expire before your wealth does. Like, is that just insane? Just like, think about that. You talk about.

And then when you do expire, there's likely no insurance coverage left because you probably didn't get a permanent policy that's in force, or maybe you got a version of a permanent policy that was very popular for a lot of years that will likely implode on itself. We won't go down that road today.

Yeah, exactly. Let's just say that I was just trying to think of a creative, like, let's just say it's a universally known.

Product that, that some people end up on their life.

Picking up on what Vern's talking about. You know, the question that we received here talks about, is there an advantage to doing that? So Vern talked about a few of those advantages and I think it's important to recognize other really critical advantages that, that when you're at that stage of life, what is very common for people, we start to consider what the rest of our life is going to look like and then we start thinking about what's going to happen when we're gone. Now, ideally, you should probably be thinking about that a little bit earlier, just, just throwing it out there. I've been thinking about it for quite some time. But if you're in that retirement phase, you know, what, what the world thinks is retirement. Again, not a big fan of that word, but you're now thinking about, okay, what's my legacy going to be? What am I going to leave behind? You know, how, how are, how are my assets going to be distributed? Whatever's left, is there going to be anything left? These are kind of questions that start coming up. And so if that is important to you, and for some people it's just not important or it's not important right now, what I find is that as people, and speaking to people, as people get closer and closer to imminent, you know, checkout time, to use a hotel analogy, we're checking out, right? Your, your thought process really starts to shift to how, what kind of a mess are you going to leave behind and who are the people or things that you want to make sure get looked after. And so it's very common for people who they've been taught maybe to only end up with, you know, term insurance or something like that throughout their life that they don't have any permanent coverage in place. So the day that they leave, the day that they, they graduate, there is no tax free benefits showing up to support them, to support the people that are left behind. So if you're at this stage of the game and you're becoming really clear and aware that that's the case, and you start thinking about what's your final tax bill going to be like, how much, how much money is going to get disappear, that is going to have to get paid to the CRA because I pass away. You have large registered accounts or a lira account or a pension fund, like all these different things, how are they going to have a taxable impact? I got the cottage at the lake. I've got my comic book collection that I got in the 80s that's worth $10,000. How are all these things going to be taxed and then how much of that money and that hard effort and work that you've spent a lifetime building and creating is going to be dissipated and destroyed simply by you being taken out of the game? What problems are going to show up that need to be solved and are going to be difficult to solve and painful to solve for the people that you leave behind? And so what can you do to simplify that process to make it easier on them, to ease that burden and to do so? So, you know, a lot of people are getting what was referred to as final expense coverage late on in life and they're, they're in their mid to late 70s, even in their 80s and they're trying to now acquire the coverage because they never had it to begin with or they never had something that was well set up. Do you want to be in that position or do you just want to solve the problem now? You can't solve the problem. You might not be able to solve the problem 10 years from now or 20 years from now. If you know the problem's going to exist. When do you want to fix it? You should be fixing it now. And so there's a ton of advantages even at that late age of life, getting started, all the ones that Vern talked about, plus all the estate value advantages that are naturally attributed to having this high quality type of insurance coverage.

You know, when you're older, maybe you have some health concerns. If you have to get one of those final expense type of policies, a expense, they're going to be a lot more expensive because it's not going to be a tool really. It's going to be just a product that is going to provide a death benefit. So it actually comes with a cost. You're not going to be likely likely. You're not going to be able to access policy values. You're not going to actually be able to do anything with it. It's literally there for the day that you die. It's going to show up a death benefit. So you actually, it's taking money out of your pocket for one. And the other thing that you were talking about is we're talking about using the process of becoming your own bank or the infinite banking concept to create some kind of a passive income or a retirement that vehicle for you. Well, we can use the process while we're alive and we can use this process as a teaching tool for the next generation. What happens when you pass away? Let's say you do leave a huge tax free windfall to your family. Well, most people are just not mentally prepared. They don't have the tools, they don't have the training, they don't have the mindset to actually deal with a lot of money. It sounds great, but it's actually a problem. You're probably going to get yourself in more trouble with a bunch of money if it shows up tomorrow. If you're not mentally prepared for it than you were if you didn't have the money. And most people, unfortunately, I don't know if there's some stats out there, but most of these estates that get left to people end up getting squandered. Yeah, we paid off the mortgage, we went on a trip and then we Put the kids, we went to the summer camp or whatever. Oh, yeah, money's gone. It's just gone forever. But when we're implementing a process and we use those rules, the foundation of what we're teaching people to teach the next generation, we actually end up multiplying the wealth and having a longer impact way into the future. There's going to be grandkids, great grandkids, and great, great grandkids who are benefiting from the decisions that you made. You'll be worm meat, and you'll never meet these people, but you're going to have a huge impact on them just because of the lessons that you leave behind. Not just the windfall of cash, but the values, the rules to follow.

That leads me to a really important question I learned from a book called the Brower Quadrant, and the question is, and this is something you're going to want to ask yourself, if all I could leave behind was money or my knowledge or my experience.

Which would you choose to leave behind? If you could only pick one? And I've asked people that question before, and I've never had someone choose the money. Because if you leave the experience behind, the person that's receiving that value and that knowledge base, they can now infer and determine how to go and either generate the money or. Or what things not to do that were unsuccessful, depending on how things play out. So, you know, generally speaking, that's the common thread that people will choose. And, you know, it kind of swings me to the next question we've got on the list here, Vern, which is, I'm retired and I'm not incorporated, so not a business owner. Is it too late or expensive to start? When we have people who are in these different, you know, age categories, they always come to the thing. Is it too expensive for me? What's really weird is when sometimes we get these questions and we're getting them from people that are in their early 40s, and they think, oh, it's too late for me. Like, how is it possible it's too late for you? You're like, you're 40. Come on. Like, isn't 40 the new? Like, 25 or something? Isn't there? Isn't there, like, people are living longer? You got a lot, a lot left, a lot of road left. You're probably only just hitting your stride when it comes to your career and your knowledge base and your ability to generate more income. Yeah, I mean, it's. It's bonkers to me that that's the case. Even people in their 50s, same idea. I mean, you've got a lot of run rate left, especially as people are living longer, so. But if you're already retired, is it too late or too expensive? Well, everything we just talked about, is it too late? It really just depends. What do you have to work with? What are your actual goals? What's your real objective? What's your final tax bill going to look like? What assets are you starting with? How volatile are where those assets are being held right now? And do you want them exposed to all that volatility in your current retirement state? What different sources of income do you already have at retirement? Do you have cpp? Do you have oas? Are you pulling down from registered accounts? What are the different sources of money that's flowing through your life? Do you have a spouse? Is your spouse still working?

What are all the dynamics? And so is it too late? The answer is no, it's probably not too late, but that depends. And is it too expensive? Well, it's never too expensive because you get to decide what the premium is. Now, if you only want to put $1,000 a year in, is it going to help you? Probably not very much. If you're older, you need to put more capital in to achieve a similar result. As someone who's younger than you, what is the result you're trying to get? Is the result that you want to be able to live off this tool because you don't have any other savings available? It's probably going to be a little difficult, but if you want it to stabilize, maybe other things that are going on in your financial life, you want to give you peace of mind, the ability to sleep at night. You want to know that certain things are going to be taken care of. If you're taken out of the game early, then, yeah, we're going to check off an awful lot of boxes. It just depends on what's going on with your life. So a word to the wise is you're thinking about watching videos like this and you're engaging in awesome content all over the YouTubes and whatever. Think about the questions that you're asking and recognize, especially when you're dealing with financial stuff, there's no direct response answer. You know, there's a popular financial entertainer down in the States. He's pretty popular here, too, and he has some. He's very opinionated. And I call him an entertainer because that's what he does. He's more entertaining. But he'll take a phone call from somebody, they'll ask one question about their life.

Yes.

This guy won't ask a single question about what's going on with them, and he will dispense financial advice. If you're taking financial advice, that's basically the Cracker Jack box. That's what you're getting of financial advice. The person knows absolutely nothing about whatever else is going on in your life, doesn't know if you have a blended family, if you're expecting an inheritance, if you're. If you're racked up with debt, if you have a bunch of rental properties, if you're a successful, if you have a corporation, they don't know anything. How on earth can someone dispense financial advice when they know so little about you? That is absolutely ludicrous.

Yeah, sorry, Rich, I didn't mean to cut you off, but I mean, you mentioned, like, all the assets and different objectives and whatnot. But even just your values alone, what is even important to you? What even matters to you? A lot of times, people, it's interesting, we talk about. We think about money, like, how much money am I going to need in retirement? It's not about how much. It's about what you can do. Right. It's not a specific number. You could say, oh, this person has $2 million, and that person has 10. That does not mean that the person who has 2 million is not living a better quality of life. They could be living a way better quality of life than the person with 10. In fact, a lot of times when you have more capital or more income, again, you get into more trouble because it's way easier for me to qualify for more loans. And I don't think I even have a problem because every week $100,000 shows up into my bank, but I owe 100,001 like, it just. They don't really see the problem because they're reliable to make the payment. They don't realize how much money is leaving them. They're making all the money in the world, but they're not even any further ahead than the person who's making half or less.

Right?

It's not about the number. It's about the quality of life, and it's about what you can do.

Right. We said at the beginning that we were going to get into some examples. And so there's this really cool question that we did get, and I want to.

We're going to.

We're going to spend a little bit more time on this one. And the question was, hey, I'm 52. I'd like to save up for retirement. Could I open A policy and pay premium for 10 years. Only for 10 years would that be enough to support a monthly retirement of $3000 per month. So monthly retirement income of $3000 per month. So this is a little bit more specific of a question. Again, pretty loaded because it's just a lot of things we don't know. But one of the quick takeaways I have here is that I'm 52 and I'd like to save up for retirement. What that indicates to me is that this individual hasn't saved up from retirement yet. They're really just getting started. So if that is the case, that could potentially pose some problems. And the other thing is, I'd like to only pay the premium for 10 years. So that goes directly to our thinking. Nelson Nash, in many points in the book, he indicates the importance of what paying a premium does and that you, especially if you get all your money back. So on page 85 of this book, point number two, Nelson says, if you knew at passive income time you would be getting back, getting back every single dollar you put into a system potentially tax free, would you ever object to putting more money into it? The clear answer is no. And so again, this goes down to our thinking. People are taught and they think about insurance as a cost and expense, and they want an endpoint. Well, I think what you really want is you want the option to have an endpoint. But when you really get started and you get practicing this, your whole mindset changes. And what you want to do is you want to know that you have the ability to pay a premium as many years into the future as you possibly can. You don't ever want to cut off your ability to pay a premium because premium creates increase in death benefit, which instantly creates an increase in cash that you can have as working capital. And if you have a program, if you had a bank account where you put a dollar in, and every time you put a dollar in, you got a dollar 50 back, how often do you want to insert the dollar? Yeah, like all the time. So if you have a machine, a policy or a system of policies where you inject a dollar and it's giving you $1.50 back every time that you do that. And I'm using that as an example, but in a lot of cases, that absolutely will be what happens then you would never want to stop putting and injecting capital in there. So that goes directly to our thinking. But nevertheless, we're going to show some examples on this particular question and we're going to see. Yeah, is it possible. Can you put some money in for 10 years and have that retirement income and then what, what exactly would that look like? So we've got age 50, two person, healthy, non smoker. They're going to fund premium. So I'm showing 30,000, 40,000, 50,000 and 60,000. We're going to look at these four examples. We're only funding it for 10 years. These premium numbers includes paid up additions in that, in that we have that flexible funding. So the, the minimum premium is lower, there's flexible premium there. But the maximum that we can do and we can stick into that contract is 30 in this case 40, in this case 50, etc. So I got the total number of deposits listed here. We're going to look at the potential tax free income. We're giving a range because it's, you know, it's going to be very close to this range. Then I'm going to show income, a tax free income happening from age 70 to 90, which is actually 21 years. It includes the final year where we're taking an income. So 21 years of income. We're going to look at the total lifetime amount that was used, what's the monthly equivalent income and then what's the net death benefit assuming the person dies at 91. So we got a lot of assumptions. We're assuming that the person's actually going to pay the premium for 10 years. We're assuming that the person's healthy, we're assuming that the person isn't going to start drawing an income until the beginning of age 70. And we're assuming that that person is also dying at age 91. So if you live longer, you might have to take a little bit less income and to spread it out more. If you want to start taking income earlier and it's going to go for a longer period of time, you have to take a lower amount of income. So there's a lot of assumptions going on here. But we're going to, we're going to keep it all consistent amongst each of the four examples. Let's just start with the $30,000 version. So we've got our 10 years. So the total contributions are 300,000 over that time frame. We're starting, so we're going from basically 52 to 62 and then we're not putting any additional premium in and then we're starting our income, you know, at age 70. So this person is going to be able to take roughly 20 to $22,000 a year. And if we did that for 21 years. So I'll just circle this green box here. It's 462,000. So we put in 300. We took out 462 and used it as working capital throughout our lifetime over a 21 year period. And then someone's going to kick the.

Bucket and there's an additional 250 grand left that goes to the next generation, pays the final tax bill, all those kind of things. So that works out to a monthly income, you know, about $1,800 a month. So that's pretty good. That's not quite what the question we received was, though. The person's 52, they're just starting to save retirement, mind you, they probably don't have anything saved and they want to create a monthly income of $3,000 a month. All right, well, let's see. Will $40,000 get us there? Well, we put in 400 grand over 10 years. We get a 30,000, $32,000 income. We're getting pretty close. We're hovering around that 25, $2,700 a month range. Right on target. We're almost there. We haven't quite hit the mark yet, but notice that we also have a much larger death benefit at this time. You know, we're looking at a 390 death benefit. So we see how these things are expanding and accumulating as we go and we increase the size of that policy. Now, if we look at the $50,000 level, $50,000 for 10 years. Again, this is a flexible premium.

The minimum on this is probably somewhere.

In the 15 to $20,000 range. And there's a bunch of flexible premium on there. Right. We're assuming it's hitting into policy at the very first day of the year. All kinds of assumptions that we're making.

Well, now we're at a point where.

We'Re getting our net after tax income of about you know, 3100 to $3300 a month. So now we figured out this person at 52, if they put 50 grand a year in for 10 years, they can accomplish their objective. Assuming that their objective is to have income for about 21 years from age 70 to 90. Now, again, if they want to start taking that income earlier, Vern, they want to start taking it, let's say at 65, are they going to get the same amount of income out?

Probably not.

It's going to bring that number down because they're starting earlier. Now, if they injected more capital, if they paid even the base premium a couple more years, then all the Numbers get better.

So again, we have to really exercise our imagination.

A really key thing to highlight here is the death benefit. We can't understate the value of this.

Tax free death benefit showing up.

Yeah, and speaking of imagination, Rich, sorry, I didn't mean to cut you off, but that's the same thing again, like if you notice the volume, right, you can see the, the ratio between, hey, I'm putting more in the actual amount that you're getting out compared to what you put in and the amount of death benefit that's left over. It's not dollar for dollar proportionate here. The more you put in, the more those benefits expand. Right? I mean, from a 30,000 example to a 50,000 example, it's not dollar for dollar difference. It's like a big dramatic change in terms of more volume in, a lot more volume out.

Absolutely. And in the example, you know, we, the final example, we've got 60,000, you know, doing everything just in a $10,000 increments. What's really cool about this is we could see, okay, we've gone from, you know, about 3,100, $3,300 up to 38,4000. Really? The lifetime amount of money used, we put in 600,000 and we got to use about a million dollars over our lifespan. So we put in six, we got to use all of our six, plus an extra 400 grand, and we still leave tax free 500,000 plus behind in the next generation. So if we take this number plus what we were able to use, we can really begin to assess how many dollars did we get to use versus what we put in. So in this example, just, you know, high level, we're basically getting to use about $2.60 on every single dollar that we put in. So we put in 600 grand, we used a million. We also left almost, you know, five, 600 behind. In other words, for every time that we injected a dollar, we were able to use about $2 and 60 cents over the course of these examples, again, if you had knew that that would happen, and we're talking about the generational aspect here because we're adding the death benefit in. But you got to use every dollar you put in, you got to use it tax free. You got to use more dollars than what you put in tax free, and you got to leave a tax free amount behind. Tell me again what's wrong with the system? This is all about tax free retirement. The independent banking concept, you can create it. It does work that way in Canada. If you know what you're doing if you understand how to implement that strategy. And there's certain nuances there that are very important to understand because we have different tax rules in Canada than there is in the United States. There's ways to do it where you could get yourself into some hot water. So it's really mindful to be aware of that. We have some other great content that speaks to that. In fact, you know as well as many of our podcast sessions that do. So recognize that you're always learning, you're always taking in new information, there's always something new to learn. Never lose that inspiration. Recognize that, yes, it is possible to start a little bit later, still see a whole bunch of advantages. Recognize that the idea of insurance being expensive at a given age is kind of irrelevant because it's really about what you want to put into it. You're just going to get less death benefit as you age for the same dollar. So that, you know, not, not a big deal. And that the longer you wait to start putting money in for whatever the retirement is you're looking for, whatever that account is, if it's a real estate, you want to buy those or you want to get into REITs or you want to do ETFs or whatever the thing is you want to do. If you're starting the game late, you got to pick up some steam. You're going to have to inject more capital to produce similar results. Either more capital or you got to do it for a longer period of time. So there's no getting around that. And that doesn't matter what the financial vehicle is you choose. If you're going to implement infinite banking, you still have to inject capital to get it operational. There's no free rides. And this is about long term thinking. And it's about having more control over the financial value and then being able to multitask capital. When you put money into a properly designed insurance contract, it's now growing in that contract for the rest of your natural life. The worst thing that's going to happen is someone's going to die. And you do pretty good if you live. You do pretty good if you die. Okay? And that's the kind of takeaway that I want people to have. As that capital builds, you can access it and you can put it to work in some other place. Meanwhile, policy is still churning along slow and steady. It's kind of like the tortoise and the Hare fable, as you may remember, Verne. And you know, the hair never really gets past the finish line. Meanwhile, the tortoise just trucking along, trucking along, stable slowly churning through, and ends up winning the race. Basically. You know, there's nothing, you know, magic or sexy about participating whole life. I mean, I guess it depends on your opinion, but what it. What it does do is it just knocks it out of the park all the time. You know what reminds me of that game Money or that movie Moneyball. Do you ever watch that movie?

I actually haven't watched that movie. I know what movie.

Oh, Vern, you got to watch that movie. It's fantastic. Based on a true story, and it's all about, you know, you know, adjusting your team around the statistics. And they recognize that as every time that, you know, you get on base, the more times you get on base, the more runs that you get over time. And so they redesigned their whole baseball team around just getting on base rather than trying to get home runs. And the end result is that, you know, they ended up getting, you know, into the championship. That mindset of getting on base and doing it all the time and doing it consistently. Yeah, that's effectively what you're creating when you implement a well structured whole life insurance policy. You're every single year you're getting on base, and you do that enough times, pretty soon you're. You're just smoking out home runs. That's how good a policy is. It's just engineered to get better every single day that it's in force.

Never get bored with consistency. So I heard this investment real estate kind of coach say in the past, he said, you know, you don't want your real estate investing to be exciting. You don't want it to be, you know, emotional. Like, you want it to be systematic and simple and, like, boring. Because if you're getting all emotional and excited about it, that means you're high with the highs, low with the lows, and. And you're going to be making emotional decisions about your investment. When you want to just make smart decisions, you want to make decisions based on the process that you're following. So, yeah, it's nice to know, hey, I'm looked after. But it's just Steady Eddie. It's day after day, month after month, week after week, cash just goes up. I don't personally get bored of looking at it, but it isn't particularly exciting. It's just like, I look at it every day, and it's fun to look at, but I like it just to be consistent, not super exciting.

It's funny that we say that, but yet we get on a Call with clients and they're pretty excited.

They are pretty excited. To be fair. They are pretty excited. I'm not taking anything away from that. I'm just saying that, you know, just the traditional way of thinking, right. I might be going on a tangent here, but you know, it's like, hey, get in, get, get in while it's hot. Everything's going up and you know, like, it's all like that, right? It's like, oh, when you're seeing that kind of a big flashing sign, it's kind of like, oh, maybe proceed with caution. Right?

Like it's actually really funny that you say that because even right here, you know, at the time of this recording, we're, we're, we're may of, of 2022. You know, I'm in the city of Chilliwack and so there's, you know, rapid real estate pricing rise happening here as well. I mean houses, house prices have basically doubled in like a four or five year time frame or maybe more than that. And there's, you know, I was talking to a guy, a realtor recently and he's like, yeah, people are really upset now because I'm, I'm having conversations with them about like dropping their price, like so they're so there. What about the, what about the doubling of the price that just happened over the last four years? You know, like, where's the win? You know, because the market, now that the interest rates are going up, there's a few less buyers, there's a little bit more on the market, so competition's up. I mean these are natural supply and demand factors. Yeah, if there's, if you're not the only house that's listed in town, you might have to be a little bit more competitive.

Right.

It's not rocket science. So anyways, it's just interesting. But you know, that's that excitement level kind of a thing. It's like, oh yeah, well now's my time, I'm going to exit on, you know, get the best price or whatever. But the reality is the markets are going to shift. They're going to ebb in their flow. And from a month to month basis, even in the real estate market, there can be some pretty dramatic changes and a lot of them are outside of your control. At least I don't have a way to dial in and speak to the, you know, governor of the bank of Canada and just be like, oh yeah, do you mind if you just hold off on that interest rate rise for the next 30 days? I'm trying to sell my house.

Yeah, I got stuff.

I don't have the ability to make that call, and I don't think anyone watching does either.

Yeah, that's fair. Well, Rich, this was really good. So first things first. Educate yourself. Now's the best time to get started. Once you determine that this is actually what you want to do, make sure you work with a good Coach. Go to watchibc.com that's watchibc.com to learn more about the process of becoming your own banker. The infinite banking concept in Canada. And don't be afraid to leave a comment or ask a question. But also click the link in the post description below. Get a copy of R. Nelson Nash's book. You'll be happy that you did.