The Canadian Dollar Is LOSING Value - Do This Now!

If you're storing money in someone else's bank, it's just sitting there. It isn't doing anything for you. It's not growing. And if the value of the dollar is going down, that means you're literally giving up opportunity to grow that money just by having it sit there. We all know that the bank is actually using that money. They're putting that money to work. So you're actually storing that money there and giving them more ammunition to grow their profit. While you lose value.

The Canadian dollar is losing value. That there are several things that you need to do about this right now. I'm here with my Wonderful colleague Verne McCarty. I'm Liz Lamond, and we're going to talk about some of the impacts that have come because of the pandemic and things that you can do to navigate these really challenging times. Vern, let's talk a little bit about the pandemic. It's kind of sped up the impact of the value on the Canadian dollar. Do you want to speak to that a little bit about what's been going on with that?

If you're, what you're watching this video, you're obviously looking for ideas, strategies, things that you can do to improve your situation. And it isn't probably a mystery to you that the value of the Canadian dollar has been losing momentum for some time now. And that could be because of, you know, what you and I talk about on a daily basis to our clients. It could be because of the banking process. It could be because banks are lending a lot of money. And in the process of lending money, that means that they're injecting more money into the economy. Right. And just basic supply and demand principles. If they're injecting more money into the economy, whether that's via people borrowing money or stimulus programs from the government of Canada, maybe they're borrowing money from the bank of Canada. Right. So then that's going to create a lot of debt. And when you create a lot of debt, that has an impact on the value of the dollar. And given the pandemic situations, of course, you know, things have to happen. We have to take care of people. There's all that stuff aside. But the point of it is all that stimulus is having an impact on the value of the dollar.

So we're going to start with something that you probably shouldn't do, as opposed to something that you should do, which is it's probably not the best idea right now to be saving cash in a traditional bank account, mostly because of what Vern was talking about is that the dollar is losing value. So even we all know that we're probably not earning very much interest in that bank account right now. But quite aside from that, because the value of the dollar is decre is actually losing value just sitting there. So that may not be the best thing that you can do in these current times. So let's talk about something that you can do. We need to put money where it's going to continue to compound and grow.

When you're watching this video, it's really important that you actually think about the things that we're saying, but also think about the things that are happening out there and what you're doing. To Liz's point, if you're storing money in someone else's bank, it's just sitting there, it isn't doing anything for you, it's not growing. And if the value of the dollar is going down, that means you're literally giving up opportunity to grow that money just by having it sit there. We all know that the bank is actually using that money, they're putting that money to work. So you're actually storing that money there and giving them more ammunition to grow their profit while you lose value. As Nelson would say on that book that you have in the background there. As our one of our mentors would say in R. Nelson Nash, your wealth must reside somewhere. So you can store money in a commercial bank, but there's other places that you can store capital. And Liz and I talk often daily with our clients about a process called becoming your own banker, the infinite banking concept. And if you want to learn more about the process of becoming your own banker and learn about where Liz and I store our capital, you can pick up a copy of this book. There'll be a link in the description below. But Liz, you and I store our capital generally in a mutually owned insurance company, in something called a permanent participating dividend paying whole life contracts. And the reason why we do that is much of what you're talking about here, like storing my capital where I store it is really important. And I'm able to store my money there and grow it every single day uninterrupted. And I'm still able to access that money so that I can take advantage of opportunities.

Yeah, I think that's really important because the access to liquidity, I think a lot of people are waiting out for opportunities that are going to present themselves. No surprise. I think markets will continue to change as they have historically and will continue to do so. So when's the best time to make the most of an opportunity is when the market shifts again. But if your capital is trapped somewhere that you can't access it and make the most of those opportunities, then you're reducing the amount that you could potentially grow that asset for yourself and your family. So having money that's not just sitting there dormant, but money that's continuing to grow and compound so that you're not losing time or value of that money, but it's such that it's also available for you to access the liquidity of it when you're ready to jump on that opportunity that's coming your way. So that's a really, really important part, that it needs to have both components available, the compounding as well as the liquidity option.

So, Liz, what I'm hearing is if the money's compounding, even if it's, you know, let's use the word sitting, if I'm waiting or if I'm being patient, or maybe I'm researching and investigating what is my next action step, right? I want to get educated. So now my money's actually sitting somewhere, but you're saying it's still growing. So that means I have more and more access to cash as the days go by. And the other thing that I'm hearing is that we all want to take advantage of opportunity and we're taught to go and take risk. Hey, I'm going to go borrow money, let's say as an example from someone else, I'm going to borrow money from a bank. So now immediately I've taken on risk because regardless of what happens, I have to pay that money back. And if I take that money and put it somewhere and if it doesn't work out, God forbid, well, now I've lost that opportunity and I still am on the hook to pay that money back. So if I want to, let's say, do some things to mitigate my risk or to manage my risk a bit more, I can be storing capital in a system that I have more control and liquidity and let's even say some guarantees on top of some of the growth that I have there. What's the age old saying, Liz? If the market's doing bad, if the economy crashes or the stock market crashes, that means that there's actually a ton of opportunity because everything's sort of, this is cliche, but it's on sale, right? If the real estate's down, real estate's on sale, or the stock market things are on sale. Well, if they're on sale sale, then I can go and access capital wherever I'm storing that capital. And when I have ready access to capital, I can take advantage of opportunities and I can be the kind of strike while the iron spot for lack of better terms. Is that fair?

Yeah, I think so. And it's also, you know, really important that you have that control about how those payments and the flexibility and you can take control of that asset. Which I think leads us then into our final point, which is it's really important to keep educating yourself and to research. One strategy is not going to be sufficient for life. It's too bad. However, I think most people are aware that things are changing in the world all the time. We've certainly seen massive, rapid change over the last couple of years in our own economy. And it's important to adjust and to shift your strategies based on what's actually happening in the market. And so being aware of having a baseline of asset in the way that we were talking about, which is giving you that compounding and the liquidity for opportunities, but also to continue to research and look at the different strategies that you could potentially use to complement whatever else you're doing.

Yeah. Liz, you raise a really good point. You mentioned before we actually started this recording today, you said, hey, you know, and this is just an example, you said, look, sometimes buy and hold for real estate, long term, that's a great strategy, but maybe that's not the strategy that you just do for life. You know, depending on what's going on in the market, you always have to be paying attention to what's going on and deciding, you know, if you want to pivot or shift or what have you, and determining what's best at the time and maybe doing nothing for lack of better terms, maybe actually waiting and educating yourself, maybe that's the thing to do, or maybe it's buy and hold or whatever it might be. But the point that you're making is while you're in between those transition periods or while you're educating yourself, it's really important to keep your money to work. And one thing that I'll point out, having said everything that we've said today, you said, hey, maybe one strategy is not the best thing for you, regardless of what you're doing with money, whether that's investing or buying real estate, or if it's paying off debt or just paying your bills or whatever, at the foundation of all that is the process of banking. Banking is at the bottom of all of that. And you can see Liz's background there. She's got this beautiful picture of that book, becoming your own banker. No matter what you do, the banking process is going to be involved. And generally, we might not even know it, but the banking process is working against us. So if we can find a way to have that banking process work for us in tandem with everything else that we're doing financially, it's just going to create a perpetual tailwind and have you wind up being much further ahead, regardless of what you do financially today. Is that a fair statement, Liz?

Yeah, absolutely. If you'd like to learn more about how you can take this process and become your own banker, please click on the videos that are appearing. Besides.