The Power of IBC When Financing Things

Now, when you access policy loans, you already know they're unstructured loans. The insurance company does not structure a repayment plan. And who calls the shot? When we decided to request a policy loan, we already had a repayment schedule. But who crafted that repayment schedule? And all that money comes back to the family banking system. So do we get to reuse this amount or this amount? The total sum.

The concept itself, Infinite banking. Nelson named it infinite because it's impossible to apply boundaries to infinite. And it has nothing to do with addressing the yield of an investment. The process has everything to do with where you store your capital, your money, before you set about taking care of all these things financially in your life. If you all about the how. The infinite banking concept is all about how you finance the things that you need throughout your lifetime. It's not about making a decision between one thing or another. I'm either going to become my own banker or I'm going to invest in real estate. I'm either going to become my own banker or I'm going to invest in Bitcoin. Without controlling the banking function first, you can't get a better rate of return doing anything if you ignore who's controlling that function as it relates to the thing that you want to do. This is a process, it's not a product. You need life insurance contracts as the tool to implement the process.

But there's a marked divided line between the products and the process. And without a thorough and deep understanding of how to implement the process, the tool just won't matter to you. And in fact, you may end up breaking it, let alone turn out any good work with it. Now on page three. The whole idea is to recapture the interest that one is paying to banks and finance companies for the major items that we need during a lifetime, such as automobiles, major appliances, education, homes, investment opportunities, business equipment, et cetera. So what's the first item on the list? Cars. These three vehicles were purchased utilizing policy loans through our family banking system. This Honda Odyssey. This Ford Explorer. This Nissan Altima. And we've repaid our system principal and interest. Now, when you access policy loans, you already know they're unstructured loans. The insurance company does not structure a repayment plan because the insurance company is the administrator of your policy, not the owner. And who calls the shots? The administrator or the owner? The owner. So before we decided to request a policy loan for any of these cars, and we're not talking about the other vehicles that we financed for extended family, there are many of those, too. When we Decided to request a policy loan. We already had a repayment schedule. But who crafted that repayment schedule? The policy owner isn't that good.

All that money comes back to the family banking system. So do we get to reuse.

This amount or this amount? The total sum. The total sum. Because what was happening to our total cash value every single day that we're driving, the car keeps going up. So you've got ready access to capital on demand, on your terms. You control the repayment schedule. And while you're using the life insurance company's money, your capital is growing uninterrupted every single day. This is a picture of our family dining room and kitchen. And all of these appliances were purchased utilizing the life insurance company's money. So every time the fridge door got opened, every time the oven was used, every time the heating tray was used, what was happening to our capital pool? It was going up. We get to re access everything that we put back in, plus more. What's the next item on the list?

Education. Thank you. My son attends Vimy Ridge. It's a sports school and academy. He's been playing hockey since he was a fetus.

I'm 6 3. He's 13. He's my height.

So as a power forward. And they can body check. Now, at age 13, when he plasters somebody through the boards, his coach has to let him know to ease up a little bit. Use your body, but don't be a bulldozer. And he gets to play hockey three hours a day. And he loves it. That's the tuition for two years. Principal and interest all recaptured back into our system. What's the next item on the list? Homes. This is our family home. You see this sign? That went up before the shovel went in the ground. Future home of the Lowe family project financed by Lowe's Capital Corp. Infinite Banking. And people are driving by. What do you think people were doing? They're grabbing their phone, right? Lowe's Capital Corp. Infinite Banking. What is that? And then people who are coming up and down the street while the homes being built. Hey, what's this? Infinite Banking.

Have you read this book? Block parties are a little bit different in my neighborhood. Let's sit down and do a coaching session on my wife's. No, we're having hot dogs and hamburgers and. Okay, now this is our family home. And right next door we had a home built for my sister in law and brother in law. Guess where the capital came from to finance these projects?

The life insurance company. And what's happening to our pool of Capital. Every single day it's going up. Isn't that good?

Now, did we get.

Enough of an aquarium of capital built up that we could borrow against? Did that fill up overnight? No. We're 14 years into our journey. Do we live in a society that thinks about a 14 year journey as oh, wow, that's really fast, or do we live in a society that prefers instant gratification? Instant gratification. In the early 1980s, when inflation skyrocketed, Nelson found himself in a half a million dollars of mortgage debt. He was a very active real estate investor. All the financial gurus at that time, and still to this day, they espouse all the advantages of using other people's money and creating leverage. How many of you have ever seen an advertisement for a real estate seminar that indicates the topic is going to be all about what happens when inflation skyrockets and interest rates go the other way? It's never been advertised. Nelson had a joint venture partner at the time. He was very prominent lawyer. Nelson had borrowed the money for these real estate investment opportunities at about 8%. He wasn't expecting to pay 23, 24%.

What do you think that created in the way of feelings for him? In that moment he was under immense pressure and he didn't know the way forward. He didn't know how he was going to get himself out of that mess. His joint venture partner and him got together and they said, look, we've got options, we can file an assignment in bankruptcy.

And someone suggested, well, why don't you guys just sell the properties? And Nelson said, what fool is going to buy this real estate for me when they got to go borrow at more than 21.5%.

So Nelson's joint venture partner did file for bankruptcy. Now these projects, we've got joint and several liability. So did the banks just say, we're going to go ahead and slice that debt in half? Nelson, you take care of your half. Not a chance. You owe the whole amount. What Nelson didn't realize is he had the solution to the problem right in front of him. He had already accumulated a number of dividend paying, participating whole life insurance contracts. He already had an aquarium of capital. He didn't think about the problem in the way that the book describes the solution. The problem is never the problem. The problem is how you think about the problem.

So Nelson.

Thought about the problem and then came to the realization that the solution was right there in front of him. He could borrow capital from the life insurance companies at 8%. Take care of the snakes and dragons at 23, 24% not file for bankruptcy, come through. On the other end, owning the real estate, still having all the cash flow and a bigger aquarium of capital and a fairly substantial amount of death benefit, including the death benefit that he had on his joint venture partner years down the road. That joint venture partner died. Long after the joint venture relationship ended, the joint venture partner died, that lawyer passed away. Nelson had a policy loan balance on that contract of about $48,000. At the time that that lawyer passed away, the death benefit was 250,000. He got a check from the insurance company for $202,000. He asked a question, did that erase a lot of mistakes that I made financially in the past? And you know how much tax he paid on that $202,000 windfall? Zero. It took him 13 years, 13 years to get rid of the snakes and dragons, as he referred to them as. And then him and his wife Mary never saw a conventional bank for anything other than the convenience of debit for the rest of Nelson's lifetime, which was about 26 years after. What a peaceful, stress free way of life it is when you get the bankers out of your life. My first experience in getting rid of the Bank, April of 2008, you could still get 40 year amortizations on a mortgage for your principal residence. So my wife Rebecca and I thought, yes, this is awesome. And then remember in July of that same year in 2008, so April of 08, we moved into our principal residence. July of 08 is my first exposure to this process. Prior to July, I thought, this is awesome. We got a low payment, a low rate and a 40 year repayment schedule. Love it. Because what do most Canadians do every three and a half years? You refinance or you upgrade or you downgrade or you. But you kick start the cycle all over again. The interest is front end loaded in the mortgage, right? So every three and a half years you're restarting the whole front end loaded operation again. And you're making the wheels of the real estate business and the banking business turn in that order. And the bankers are getting really wealthy, making a good living off of your activity. It took us seven years to get rid of the bank. Seven, 33 years ahead of schedule.

How we doing?

Was I seeking instant gratification? Nelson could have got instant gratification in his scenario. He could have filed for bankruptcy. Stress gone, anxiety gone, pressure gone. Instantly gratified.

He chose to go about it differently. So did we. The bank's gone 33 years ahead of Schedule. The first person I call, take a wild guess because both my parents are gone, who's the first person I call? Nelson.

Nelson. I'm so excited. He's like, are you having an ecstasy fit? I said, no. I said, I'm so excited the bank is gone.

He said, don't celebrate too quick.

You signed on for a 40 year amortization schedule. You need to honor that original loan schedule. Always complete the original loan schedule.

So the 1892 bucks a month that we were sending to someone else's bank, guess where it's going every single month since that seventh year when we waved goodbye to the bank, back to our system. If we chose not to do that, if I would have said, hey, Nelson, thank you for reminding me of the importance of being an honest banker and finishing the original loan schedule. But I'm going to choose not to do that. Because I'm the banker. I call the shots. What do you think would have happened to my expenses in very short order? Would they have gone up? Yeah. And then what would have happened to what was once a luxury now becomes a necessity.

So my lifestyle would have changed. I would have went and bought a bunch of crap to impress people who don't give a crap anyway.

Right. And so think about this as it relates to your implementation of the process and what stage you're at. Because your brain's gonna fight you on instant gratification. You will become impatient.

If you want a perfect sharp example of that, go to Walmart later today. Find the longest line that you can find and you got one item in your hand to cash out. Then I want you to take out your iPhone and hit the stopwatch, put your phone in your back pocket and pick it back up when you're frustrated. It'll be less than a minute.

I promise you. You need to stay the course because you're going to need to use some money throughout the rest of your lifetime.

The more time that your policies have in force, the more efficient they get. We're living proof.

When Nelson passed away.

Prior to him passing, his family banking system had 48 insurance contracts in the system. 48. 17 of those contracts were on his life. When he passed away, the insurance company wrote 17 death benefit checks.

Nelson blessed a lot of people, but the biggest blessing that he left behind were the remaining policies that were on the lives of other family members. And now they had all this tax free windfall from his death benefits to backfill their own policies. The system became immediately self sustaining.

And how much tax was paid in that transaction? Zero. Keep taxes away from your family's banking system. Keep taxes away from your wealth. Okay, the next item on the list. Investment opportunities.

These companies form a part of the low family group of companies. The principal invested is a lot. I just put that in because these are private companies and respecting shareholders and partners and all of that. These companies combined generate multi eight figures in gross revenue every year. All of these opportunities. Each and every one of these opportunities tracked me down, not the other way around. Nelson said when you have ready access, capital opportunities of high caliber will find you. He was telling the truth. And I'm the proud owner of some really successful businesses and I get to. I'm privileged to lead great teams that operate these businesses and so on. That's opportunity that found me.

And where did the money come from?

The life insurance company. And who co owns the life insurance company? Say I do. Right. Because you're all policy owners. Business equipment. Okay. This is a picture of Jonathan in one of our Canada prep and ship warehouses. This is all product that's being shipped across the border to Amazon distribution centers for American consumers who love Canadian products that they can't buy in the US So we're satisfying a demand. That's a business that requires equipment. You got forklifts, you got shelving, racking label printing equipment and so on. 200,000 bucks to capitalize that particular warehouse came from the life insurance company.

Our aquarium of capital keeps growing uninterrupted.

You imagine if Jeff Bezos bought into this concept.

He'D be sending a lot of people to the moon a lot faster.

Principle and interest fully recaptured. Let's go to page 21 in Nelson's book.

And on page 21, Nelson indicates that the very first principle that must be understood is that you finance everything that you buy.

You either pay interest to someone else or you give up interest you could have otherwise earned. The alternate use of money must always be reckoned with. Some call this opportunity cost. But it is amazing how people give lip service to this fact but do not put it into practice in their own financial dealings. The equivalent of thinking that the law of gravity applies to everyone else but them. You, you're in a position of assuming total control.

When you look back on your family banking system 14 years from the day it began.

Do you want to look back and say, wow, gosh, I wish I would have did that a lot slower?

No.

Your speed, everyone's speed of implementation in this room is going to be different.

We have clients in this room that have nine policies and they're not even a year into their system yet, and they're expanding, they're adding more.

And we have clients who have been an owner of a single policy for a few years now.

You move at your own pace, but avoid seeking instant gratification. It's not possible here. You're going to need the use of money for the rest of your lifetime, and so is every generation that comes after you.

So create a system that becomes self sustaining, because the generation that comes after you is going to need to use some money too. And the generation that comes after them is going to need to use some money too. Whatever that medium of exchange is, cryptocurrency, digital currency, whatever that is. The reason that I'm taking my time with this is because you're existing policy owners. Okay. If somebody had delivered the talk that I'm sharing with you today, when I first got started on my journey, I'd be way farther ahead. I had to travel all over North America to meet with people who had been in practice much longer than me. I would have to pay them to spend time with them. Hey, can I come hang out with you for two days? Sure. Write me a check for 8,000 bucks and I'm serious, and you can come hang out with me for two days.

The only investment you're making today is your valuable time. Use it wisely.