The SAFEST BET To Grow Your Money in the Last Century!

Who would not today want to put in 250,000 knowing that there is about $2.1 million that's going to be there for them in the future. People don't see the impact of where their money and not capturing and harnessing their earning potential. What it's costing you by using cash, this is the cost that people do not see. This is the unseen. What I want to talk about and share is about capturing the earnings potential of your money that flows through your hands. Now, the concept that most people think about, when money comes in, they have expenses, they're paying. They have all of that concept of money that is just going out because I have to pay for it. So they work with what they get to keep and that's where they focus on rate of return. Let me ask you to imagine all of the money that flows through your hands so far. Now, with all that money that flows through your hands so far, let me ask you, when you use that money to put it into investments, let's just say for 36,000, how much do you normally earn or make from that money? It either can be negative, it could be 0 or 10% if you're lucky, or 15%, something along those lines. What about 50,000 for a car? 0. No earnings. 30,000 that you use to pay for taxes? 0. 10,000 that you used for vacation. 0. 10,000 that you USED for utilities. 0. 20,000 that you use for supplies? 0. The key thing is how much money do you earn when you give your money away to someone else? So you are doing all the work bringing all of that money in, but you are giving it away to someone else for those services or those things, it actually ends up being zero. So when it comes to money, kings have been so trained to focus on rate of return. I just want to continue reinforcing the message, rethinking your thinking. Think about the information that you are getting and the source of information that you're getting. Because most Canadians are so trained to chase returns all the time, I want to start this concept to talk about is the power of an olive. As a business owner, which decision would you choose? A 1% improvement in 100 things or 100% improvement in one thing? There's no right answer. It all just depends on what some people prefer. Most people think that to grow more profit, they just need to bring in more money. This could apply to you personally or corporately. Oh man, the expenses are going up and I need to find another job. I need to find another revenue source. Doesn't matter if it's personally or corporate. Now, American Airlines, that I wanted to share with you in the financials for 2023 were revenues of 52.9 b. The cost of revenue, and I'm speaking now specifically to business owners, is in order to generate that $52.9 billion of revenue, they have to incur 40.5 billion of costs in order to get that number up. They have to incur more costs to get that money up. And that is 76.56% of the money that got brought in in the form of revenues. In order for them to get the 52.9, they have to spend and incur 40.5 then operating expenses. This is what they need to do to maintain the business to go, which is 10.8 billion, which is 20.42% in relative to the 52.9. So the net profit in terms of dollars, if we look at the margin of money that they get at the very end is 3%. Everyone else is taking your money and what's being left behind is how much basically you get to keep. And what most people focus on is then from this 1.6 billion, how can I invest this money and get the zero return, the negative return, the percentage return of 10%, which not everyone can do, you put your capital at risk to try to do that. So everyone's focused attention is always on just the net profit at this operating structure. If your mindset is just thinking, I need to bring in more money when I bring in the term operating structure. If you focusing on bringing one extra dollar of revenue, all that's going to flow down to is get 3% into your pocket. So for an extra $1 of effort, you're only getting 3 cents as a return. Is that a really good choice to make under this context? And this is where again, the importance of becoming your own banker and building your wealth is not just about some template solutions that financial entertainers or marketers to say, this is all about the numbers and all this stuff. It doesn't matter what the numbers are for someone else. What's important is how the numbers translate to your specific situation. If your business operates in the same percentage operating structure as American Airlines, where at the bottom line, the final net Profit margin is 3%, every dollar you make in revenue after paying everyone else, you only get 3 cents of it. So that's not a really good smart approach to do it. But if you focus on something like operating expenses for every doll goes straight to the dollar bottom line. So for $1 that you make a Cost cut for or an adjustment for it goes straight to the bottom line. So this is why it's so important to review the structure of your business, the structure of the income, the structure of where your money is going, and to find opportunities to save more money instead of making more money. Now, in the 1980s, Robert Crandall, CEO of American Airlines, what he did in terms of this impact was just to remove one olive from each salad served in first class. The removal of that one olive, people think of it as being so insignificant. Well, this tiny reduction of one olive saved the company back in the 1980s of $40,000. In today's time, that would be $200,000. What I want to really highlight is an example of the impact of small little steps that have a very large trickle effect down the road. So the impact of 1%, and imagine if it gets compounded so everyone thinks of 10% of a hundred thousand, that's $10,000. And that's based on the hundred thousand on what you work, on what you keep. And you're trying to get 10% on that, and that's only going to translate $10,000. And the probability of getting that 10% is much harder. Whereas what if you focus the energies on 1% and the impact on. If you bring in the volume of dollars of 1 million, which would be 10,000, or 1% on the volume of activity of 10 million, which would be $100,000, or 1% of the volume of 100 million, which would be 1 million. Capitalizing on the volume of activity can be more impactful than the rate of return. So are you capturing the earning potential for the money that flows through your hand? And now I want to share with you a client of mine. Peter's 45 years old and he's a successful business owner. He's in the manufacturing business. Now, it could be any business in terms of the concept that I'm talking about, but the concept specifically where I'm sharing with you is a manufacturing business. He's an owner operator. Without him, his business doesn't work. He actually really needs to deal with it. And for those of you who are in manufacturing, understand that it's very capital machinery intensive. He needs machines that he has to buy, and from the purchase of the machines, he then flows his orders through it. And that's kind of essentially what capital intensive business is. Whether it's farming, whether it is storage or whatever, there's a high ticket price for that specific item, and that's what's generating the revenue. But once he's invested in the equipment. All it produces is it's very consistent, it's very stable as long as he's getting the volume of orders going through his machines and he's going to make his margin on top of those products. Now the amount of margin he makes on his products is not very high. It's very low profit margin. Now one thing of course is he's a client. So he loves ibc. He actually is already practicing becoming your own banker. And he's built systems of policies personally and corporately. He calculates each year he can approximately take 15 days off a year. Again, he's an owner operator. He can't get out of his business. He's the only one that can do it because without him his business doesn't really last very long. So he only gets a little bit over two weeks of vacation. He works 350 days a year. Again, his machines do all the work, but he still needs to make sure he's around to make sure that they run well. And one of his largest challenges is that he can't afford to take time off. So there's a lot of actually risk on him because if he doesn't work, he doesn't bring in money. And if he, for God forbid, if anything were to happen to him, then a lot of the situations around his income and his cash flow, his confidence on it and money that he brings in is going to take a large hit. We have no idea what that is. So his largest concern also is he doesn't know with today's economic climate what his financial future looks like. There have been uncontrollable government policies, increasing taxes and inflation, rising interest rates. He doesn't enjoy putting his money and gambling it in the stock market. Now some people can make quite good money in the stock market depending on if they're trained. But some don't like that discomfort, especially if he's reaching a point of when he wants to retire. So in his business he has cash of 400,000. He has accounts receivable. What accounts receivables are is that I will make sales, but I'm giving it to you on credit. So I haven't received cash in. So it's kind of like an IOU of $200,000. So that's $200,000 of cash that is eventually going to come into him. But he just doesn't really know when unless. But his terms are about 30 days. He has inventory of 1.5 million, meaning he's taken cash that he has and he's used it to buy inventory so that he can then put it through his machinery, put add skilled labor, work on it to fix it up so that it becomes his finished product. So he's taken money to buy those raw materials to make it that inventory, which is 1.5 million. So money stuck in there. In order for him to get profit, he actually has to sell that inventory. You know, prepaid expenses, land and equipment, so on and so forth. So his total assets 2.4 million. Now, accounts payable is actually bills that need to be paid. In the business context, when he's going to pay bills, he could use credit card, but some suppliers of his allow him to pay his bills 30 days later or 60 days later. So there's some time that is available for him that he doesn't have to pay, just going down to it. His debt is about 125. He has a retained earnings of 1.4 million. And what this retained earnings means is after all of the profit he's generated over time in his business, that's actually a reflection of how much he was able to keep. Now, where it all went, it went into the forms of things like inventory or equipment or cash or he's withdrawn it out. But in general, his retained earnings of what he's actually kept in the business was 1.4 million. But in terms of the form of cash, what he has is 400,000 of that. Now, just visually, just sharing with you, you can kind of see the balance sheet in terms of financial statements are money you have right now, sort of like your net worth and you've kept over time. Your net worth is an accumulation of what you've built up over time. So assets are what you have, liabilities is what you owe, equity is what you've kept. So he's kept 1.9 million of that in his business in the form of some form of a value. Now, now I want to show you his business in this circumstance. Now, when you receive financial statements from your professional, tax professional, accounting professional, doesn't matter who, bookkeeper, they will give you what's called an income statement. All I have done in terms of his numbers was just reorganize it in a different way and looking at it at a different way. So he brings in from his sales 1.8 million. So in order for him to generate that 1.8 million, he has to incur 1.2 million. Now, the frame of mind that I want to start introducing to think about is that 1.8 million has come in 1.2 has gone out. And that's 65% of the money that has gone in is used to generate that revenue. The other 8% of it is commissions. 150 depreciation, amortization is this. So these are the percentages of all the money that is coming in. What percentage of it is leaving him. So at the end, he keeps 47,820 as his profit. That's what he gets to keep. That's what gets added to his retained earnings and accumulates over time. The income statement that I just want to go back to is the money you bring in annually. If we were to slice that pie of 1.8 million, where is all of his money going? All of his money is going is to cost of sales, selling expenses. So you can see those percentage. 66%, 18%, 13%, 3%. So you can see all he really gets as profit is 3%. So after all of the money that's coming into him, he only gets to enjoy 3%. One thing I just wanted to share with you is when I positioned the flow of his money to show him where it's all going. Here's his situation. He brings in 1.8 million. 1.8 million also leaves him. And he only gets to keep 2.5 or 3% of that money. 47,000. Despite seeing his numbers every day. So his tax professional would give him his statements. They file his tax returns. He sees at the bottom, at the end of the day, all of the money he sees is 47,000. He's like, Henry, I don't make that much money. Like, I work so hard. I don't make that much money. Like, what am I supposed to do? One thing he has is he's lost sight of his efforts. So I just brought him to focus on what's already in plain sight. It's already in front of him. He just doesn't see it yet. So I want to bring him something for that 1.8 million. He brings in only what's left that he keeps his 47, 8, 20. And he was actually pretty deflated for it. And he already has a corporate policy. And the corporate policy was actually for the purposes of recapturing debt and leaving a legacy. And this is where he shares his frustration. He's comfortable sharing that with me. So we have these type of conversations. So as his coach, I challenged him and I just made him rethink his thinking. He already brings in, he handles 1.8 million in money. What if he could capture that earning potential? What if he uses that money that he brings in differently. The profit to his business is 47,008 20. Here's what most business owners do with that profit. There's usually three choices. You can reinvest your money in the business. So he uses it to go buy more inventory again so that he can put it through sales and get his 3% return. At the very end of it, he can invest it passively. People would say, oh, I just do something really safe like a GIC or put it into some stocks or he can withdraw it personally. Again, I wanted to rethink your thinking to begin unpacking and identifying the way that capital comes into your company. After you've identified all of the money that's come into your company, where do you deploy the money? One thing I want to highlight is of those three choices, the way that he receives his capital can make an extremely big difference because the tax act is designed to tax specific ways of capital in a different way. So I want to introduce and share with you just a little bit of a concept here related to that flow. So there's active business income, which is basically second generation. His profit that he makes his second generation, what does he do with that profit? He can put it back into his business, which is Route 1 1, and he can use it to buy inventory. He can save it up to get more equipment. In this case, he's actually either going to buy more equipment in the future or he is going to actually acquire another business. But right now his strategy is actually to pay down his debt, which was what he was focused on. The other option is property source. So again, using something like a gic, the third is withdrawing it personally. If you put it into your active business, you're taking that second generation income, you generate that return. So in his case, he would generate a return of 3% and that's still getting taxed at what's called an active business rate, which is 12%. The second example is he could keep the money in the business and use his business to invest it into some product like a gic. But what the government has designed is rules for companies that if they invest in passive sources like GICs, properties that gets taxed at 50% or you can withdraw it personally. And Peter's case, he was already in a high income bracket and he was getting taxed at around anywhere from 30 to 45%. So if he were to withdraw the money personally, he would get added on that extra income that is getting taxed at 40 to 50% because of marginal tax rates. So the location of where he's putting his money has these various tolls that the government has set up. But which toll do you take that is in your best interest? This is the important route to understand for him doing one very simple change can implement and maximize IBC in one spot. So by putting ibc, his policy in his first spot, we can change how he redeploys his money and what he does with it. So that was actually one of his first policies we've implemented to help his business repay some of his debt to gain more return at the same time pay less taxes in that tax territory. So again, he's staying in the 12.2%. That's the only routes he has. But to help him get further financially, he could save interest by putting a policy, recapture his debt so he pays less interest and he can gain more return. Property sources 50%. It's the same thing. It was one really simple change. Knowing what is clear about where his money is going and what he wants to be able to do, he now is focused on what he is already doing. Except he just wants to become a dedicated banker even more. He's investing more of his time to become his own banker. You may think that you have one policy, your job is done and he's already practicing the process of banking in the form of using it to recapture his debt. But it hasn't completely solved his financial journey of working like a slave in his own business. If he diverts his energy to some of it focused on becoming a more dedicated banker to his system, well, he's going to start capturing or recapturing the earning potential of the money that is leaving him those expenses. So what does that look like? First of all, let's first understand taxes. Paying his taxes is a small example on recapturing mandatory tax payments collected from individuals and corporations by government entity to fund government activities. The government activity or the government will share that it's for services. But I don't think we get any choice in how they actually spend it. Whether they should cut it back down or anything like that is to fund government activity. In one example, let me show you how using IBC can help him with recapturing expenses. Because taxes he has to pay, the more he makes, the more he will pay. But he has to pay it. And most people right now will think about I'll just pay it when the time comes for him is in June of each year. He'll just pay it in cash from the money that he brings in and he just pays it. So he's missing an opportunity Here. And one thing I want to make sure that, you know, there's no legal way to get him out of paying the taxes. Else in the government's eyes it would be considered illegal and theft for them. So no matter what, each year of that 1.8 million money that he brings in, the government is taking $30,000 away from him in taxes. Again, there's no way to go around that. There's definitely professional tax planning strategies that we talk about and things that can decrease this number. But ultimately there's no way around that. Add to the fact that, you know, now the government has enhanced their ability on alternative minimum tax so he can do what he's already doing, which is set aside $30,000. Now I just want to reintroduce the concept of the fact that where does that money reside? It's still residing at a commercial bank. He is missing the small nugget here of being the banker in his family on this specific element of his cost. So for the year in cash reserve to pay taxes in January each new year. Now the other option is or fill the money in his banking system first and then pay the tax. If you flowed the money through your policy first and used it to pay for the taxes that you know you need to pay, would the situation be different? Well, so what would be the best approach to this situation? Because I have the cash, why should I borrow from my banking system and incur interest? Why would I do that? I want to share with you as a very simple example why it's important that you want to consider using your money in your system to pay for your taxes. Money's already leaving him. So take control into his own hands. And if you depend on the white knight and your voting that you get, maybe that will save you to pay less taxes or remove taxes. But that doesn't look like something he can control. So it's not in terms of the means of the fact that he has to pay taxes. We can't change that fact. That fact is true. This was his policy that we newly introduced into his corporate environment, which was an annual premium of 50,000 and that required is 11,500. That EDO is $38,499. And the cash value on his policy increases 16.21 per day. By the way, he's in his journey, actually in his second year of his journey on this process. But in his first year, 16.21 per day, 18.7 per day. So if we change the way he pays for taxes instead of his current way of Paying for it by building up a fund in some other person's bank and, and then paying it out. What if we change it in that way? So we're going to practice the process of banking. It's not the policy, it's what you do with the policy. Some people just need repetition because we are fighting against all of the other information programing sources that are coming from outside. And they will think back into default of relying on the conventional banking system. How can you take more power into your own hands? So that's why it's important to have the right coach and continued educational support. The imagination of you have with your banking system can also be done corporately. And so using Peter as the example, he has 30,000 in cash. Should he borrow against his cash values, against his policy, Peter would be better off drawing the policy loan to pay for what he wants to pay for. So again, here's his old process money that he brings in every year, which is the revenue. You say bye bye to it because there's earning potential and it just goes straight to the government. Say bye bye to it. What if he did it a different way? The new way for Peter would be to take his 47,820 funded every year. Portion of that is going to require. The other portion, which is optional is his accelerator deposit option that creates the policy. He draws the policy loan to pay the government and every year he comes in to 1.8 million again. And he's going to use that 1.8 million to go pay the policy loan and then use the policy loan to go pay the space that he has in the policy loan to go pay for the government. But every year his profit, he's using it to build another warehouse, build another way for him to do things differently. The key thing that I'm taking is his profit that he's making from his business, redeploying it into a policy. But the money that he brings in is still going in and out. The first portion of what he's going to use it for is to pay taxes, preserve the cash for next year, to capitalize the system with premiums. So he wants to use 30,000. Where should he use the money? If we kind of look at that comparison, the first one is his banking system. He has $30,000. His commercial bank is $30,000. He also has $30,000 sitting in the bank. I'm just saving it. Why not? I just pay for it out of the bank. Remember, system is 16.21 per day. His second year is 18.7 per day and I used 5% just to keep the number simple. We all know that money sitting in a savings account is not 5% today. But if he kept his 30,000 sitting in his bank, 1500 would be his annualized interest. So his daily cash increase, which it doesn't really increase daily, you get paid interest on it monthly, would be 4.11. Now, as you know, when you draw a policy loan, 6.5%. If he drew the same 30,000 on that policy loan, it would be annually 1,950, or at a accrued charge of 5.34. If he doesn't use the system or if he doesn't do anything. Right now, his system on his family side, his money pool is increasing 16.21. The Commercial bank, if he has that 30,000 sitting in there, it's increasing at 4.11. We can already see on a daily basis, that pool of money is growing more at a pace than where it's located. And same money, just different location, is growing at 12.1%. Now he uses the 30,000, but the one over here where he's using it, you can see the commercial bank side, it's gone, it's zero now, right? But on the left side, Peter's side, he still has 30,000 sitting in his bank. He's going to use his policy money to go pay for it. So he uses his policy side. Now what people see is 16.21 is what his policy system was increasing. And now he's incurring interest, interest daily at 5.35. His money pool is still growing at 10.87 net. This is what people don't see. Here's what people always see. I borrowed money, I have to pay interest. But here's the part that again, if the commercial bank's money has gone down, which he was residing his money, he also incurs no more interest, so he earns no more interest, so he gets no more money pool. People do not see the fact that, yes, he doesn't have to pay interest for borrowing money, but the pace of the amount of how much he's borrowing is also not as strong. So on net in that comparison, on a daily basis is 10.87, which is quite awesome. What if he did it in the second year? So now he's taking the 30,000 that he has, and he used some of it, he saved it, he preserved it to put it into his policy for that second year's premium. Because the concern that people have is always, oh, why shouldn't I pay for cash. Well, I'm going to keep my cash so that I can use it because it's. It's a finite resource that I bring in every year. But I'm going to put it into my policy next year. What's the impact of putting that money into premium next year? It increases the pace of that difference. Again, let's say it's replenished in the commercial bank at 30,000. So instead of one year now being 12.10 this year, if we assume interest rates are the same, he's just made a daily difference of $2.49. Now $2.49 over 365 days is an extra $908. It's nothing to sneeze at. But the key teaching point that I want to highlight is you are preserving the resources and putting it in a financially guaranteed place to help grow the pace of your cash values. Because what it increases every single day because cash value by age 100 must match the death benefit. Let's not forget he also gets a growing tax free death benefit by putting that money into his system and back to being in financial control again. How he uses it will help him get better financial control. Use the policy loan to pay your taxes. So whether you have a policy, a system, policies now in your corporation, this can be an inspiration to see the value of intentionally using it. Where you use it is also powerful. So let's look at Peter's situation when he uses his new policy to recapture more than just paying taxes. What if he starts doing it for more than just one expense? Money going out in expenses now being recaptured. And the policy loan available from placing EDO each year. So that required premium non negotiable. You want to make sure you pay it. You're keeping your business, your expansion branch alive by funding that. So here's that annual money in. He's putting in his accelerated deposit option 38,499. Here's what happens when he puts it in. He gets more as a policy loan to access $39,951. Let's just use some really simple logic. If you can put money in a place $38,499 to get a known financially guaranteed amount of policy loan that you can actually borrow against and have $39,951 to use. What does that $39,951. What is it used for? I'm just using this as an example to keep it simple. But the ones that I've highlighted in all of these Expenses. I've highlighted all those expenses that he has to pay and it's being recaptured and it's $34,360. Let's just assume, you know, normally, you know, he'll probably capture another $5,000 of his postage. But to keep the visual simple, all I did was he took his policy loan and refunded it into his policy to again use it for those specific expenses. So he has 17 expenses that he pays. Cost of goods, commissions, depreciation, amortization. So there's 17 of them. So in his first year, immediately, he already gets to control the process of how he pays for 5 of those expenses. That's 29% of it. And if we look at again 38,499 to 39,951, that's a 4% increase just by using his family banking system. And he's already captured 29% of those expenses. I just kind of wanted to share with you. Here's his first year putting in the 38,499. Here's the amount of money that is coming out. He's capitalizing his system. And right again, it's not like real estate where you have to dump in a lot of money to do renovations or anything of that nature. As soon as he puts the money in, he will get access to it. So here is an example. He gets to access to that liquidity. He's capitalizing his system. And what's the impact of capitalizing his system by using the accelerator deposit option? The accelerator deposit option is going to actually immediately get put to work. He puts in the $38,499. Here's how much extra death benefit tax free that he's going to leave behind for his family of 119,860. That's an extra death benefit from what he started with. And that also because it's in a corporate environment, when a policy is placed in a corporation, you have two ways to get money out of a company, a salary or a dividend. Well, if and when he passes away, he gets to allow his family to withdraw money out of his corporation, not through a salary or a dividend, but through what's called a capital dividend. And that is taxed at zero. So he can help his family now with that 38,000, get out 70,000 tax free. That should be extremely exciting. You put in 38,000, someone else in your family is going to be able to draw money out of that asset of your company that you built. 70,000 tax free in the form of a capital dividend. And this is the impact on his death benefit. His death benefit was starting 955,000. It increased the 119. So now he has over a million dollars of death benefit just by placing the accelerated deposit option. Just by placing the accelerated deposit option he can also draw out and set up a fund. This is the other fund that his money can come out of his company tax free. Not in salary, not in normal dividends, but as a capital dividend. So that was 955 adding the 70,004 69. But let's take a look at the impact because the policies get better as we get a better tailwind as we keep the policies alive longer. Right. You put in the same 38,004 99. And here's the impact on his policy loan that he can take in his second year which is 43,074. And with that extra policy loan he's now able to capture more of his expenses and using it. And in this case first his money has increased from the 38,000 that he puts in. It's increased in terms of what he can use by an extra 12%. Now he's able to capture eight of the items. Before it was five of the items. Now he's captured 47%. This is the territory that we are working on now. He's currently actually in his second year. He's gotten to his territory of those expenses and now it's he's flowing that through his system and capturing the earning potential on that now captured 12% earning potential on his money. Right. And if we look at the capitalization effects he's so far now first year is put in 38,499. So 76,997. And as the money that he's used is 83,000 2 6. That's an extra 7,000 of extra money that he's used to help give him. He's used a steamroll to help him get further ahead. Now let's look at year two. What the impact of him putting Edo again what that did in terms of his family banking system specifically his death benefit increased another 119,630. And the amount of money has increased another 70,000 that he can help his family draw out from his company tax free again without salary, without dividend through a capital dividend. And his death benefit now has increased from 955 with an extra $239,000 on top to almost 1.2 million. And same with the amount of money that comes out. Here's what the outlook looks like each of those steps along the way. Third year he puts in the same 38,499. And then now the capital that he can borrow as a form of a policy loan is 46,978. Who wouldn't want an extra $8,000 for putting it in just for doing something that's already designed great for you. And in that case, in the expenses now he's captured another two. And in that perspective it's now 59%. So he's put in 38,499, he gets an extra access of money. 22% extra access and he's captured 59% of the items now. And his cumulative amount of money that he's put into the system is 115,000. And it's brought up to now 130,000 of money that he's actually been able to access through those three years over time. Year three, 38,000. The impact of an extra death benefit. Nice of 119 to 95. Same 7486. So now his death benefit is going up again. And his amount of money that his family can draw when he passes away is an extra 211,489. Year four. Same 38,499, year four, the amount of cash that he can access. 48,906. Now he's captured 65% of his expenses. He's in total put in 154. Over four years he can access 178,000, 27% increase on his money and you put in 38,499. You get an extra death benefit of 119 set behind. Who wouldn't want to put 38,000 with an extra 119 that you'll get in the future? That is what we are building all of this for. And with that extra 70,000 again now he's crossed 1.2 million. Now it's 1.3, almost 1.5 million of tax free death benefit that's going to get paid in the corporation and his family again can take out more than 1.2 million at year five. 38,499. Now he gets 52,000 that he can borrow against to go recapture some more expenses. So how much more does he recapture? I think you get my point. He's now captured 13 of the 17 items which is 76%. He's put in $38,499 for 59% increase of his money or 76% of expenses captured with a cumulative amount so far after five years of putting into his policy 192,493 and instead he gets out in the form of policy loan 231, 157. This only gets better. And there is no concern about what's happening in the stock market. Because if money goes into his policy, he follows the same behavior as a policy owner. He will recapture his expenses. And this is where implementing the process of becoming your own banker. With intentionally practicing the process of banking, working with his coach me to focus on harnessing the earning potential on the money that is leaving his company in expenses. And assuming the fact that Peter doesn't understand the importance of becoming your own banker, which we know he knows while he has the contractual authority to stop funding premiums at this point, he doesn't have to put any more money in. Look at this benefit for him being disciplined for only five years following this process. Well again he's only put in the 250,000 over five years. He puts no more money in. The policy has its own ability and life now. And if he lives to age 100 or he lives anything less, the numbers that you see on this cash value is increasing every single day to match the death benefit by age 100. Who would not today want to put in 250,000 knowing that there is about $2.1 million that's going to be there for them in the future by implementing IBC and changing the way he flows and using it to pay for expenses differently. Let's look at it this way. He's giving up having 2.71 million. If he's doing what he's currently doing, he is for sure not going to have 2.1 million. But if he's following the process of becoming his own banker and being a better banker for him and his family and all of what I just shared with you was just to stop funding premiums. People don't see the impact of where their money and not capturing and harnessing the earning potential. What it's costing you by using cash. This is the cost that people do not see. This is the unseen. So what's the impact of sending your money away over time using Peter's banking system as the example on the journey to capture 79% of his expenses, he's paid 50,000 over five years or 250,000. He uses that as ammunition. The premium is his ammunition. He harnesses the 250, uses it properly to capture all of his expenses. If he didn't do it this way, he would be giving up 2.175. If we look at this logically, this is the impact of time. By not putting this 250 into a policy system and recapturing his expenses, he's giving up 2.1 million in the future. You have a trusty machine and a warehouse of money that gets better with the premiums you feed it. That helped you take financial control in the first place. When would you stop feeding it? This starts with changing his intention to one thing, which is the discipline to fund one very simple Edo of 38,499 annually for him. And this created the short term benefits of capturing the earning potential 30% of the money that's leaving him. He gets to enjoy the ability to lessen his taxes and all the money he brings in. 1.8 million million. He gets to immediately create an environment that grows tax free. Bypassing the 50% passive income tax rule, bypasses other government tax rules on second generation income. He immediately minimizes financial risk to his family in case he graduates too early. With an immediate setup of $1,000,000 of death benefit and ability to bypass corporate tax withdrawals to draw 1 million. Or if his family decides 102 over 10 years in the form of capital dividend. And here's what it is. Long term, he gets all of those short term benefits. Plus if he's being disciplined throughout his five year journey, he enjoys even bigger and better numbers which includes the 76% that he can capture his expenses immediately creating an environment that grows tax free. The same thing, except now his tax free Death benefit is 1.5 million compared to his 1 million. His ability to bypass corporate tax withdrawals to draw is 1.3 million instead of 1 million. So this looks spectacular already within 5 years. It only gets bigger and better if he continues this discipline as far as he can, even to age 100.