The Secret Strategy To Build Generational Wealth That The Rich Don't Want You To Use In 2025

We're practicing banking, and it just gets to be a point where when I think about a loan, when I borrow money for a vehicle, I was going to have to pay that debt somehow. Anyhow. I haven't changed. I was still going to save money or pay money for that vehicle.

When our children are old enough to own the contracts, these insurance contracts that we purchased on their lives, our family attorney is already preempted. So one of the things that we've done for our family, because one of the questions was around, well, what do you do instead of gifting?

Awesome. My first question is, how does infinite banking promote financial independence and building wealth for future generations?

And actually, before I give this to my teammate, I'd like everybody, all of my teammates, to turn on their camera so everybody can see our panel.

And.

We'Ll have a discussion.

Why don't we start with.

Stan? How does infinite banking promote financial independence and wealth building for future generations? Stan.

Thank you for the question and thanks for directing that to me, Kwan. Well, how does infinite banking promote financial independence? Well, this is all about becoming your own banker. So. So we're creating that warehouse for your wealth that's in a safe, secure and private environment that you can use. How do we create wealth building for future generations? Well, you start with the parents, you get policies put on them, you place policies under your children, and later on we all do pass away, there'll be a death benefit that can get passed on to your children. They can use that as fuel for their system. They can get policies for their children, and that's how you propagate that legacy and that generational wealth, it just keeps going on and on. So think long term and long range.

Right? That's Nelson's first rule. Right? Think long range. And where did you learn all this?

Through the becoming your own banker book. Best source of information out there.

That's right. By Nelson Nash. Awesome.

And then the next question is it kind of ties into that one as well.

I'll talk to Liz about this one. How can policies be layered or purchased from family members to scale the system? Can you expand on what Stan was talking about? The grandparents, the parents, the children? How does that work?

Yeah, sure, Kwan. So essentially, you can insure anybody you have an insurable interest in. So I. My zoom is crashing and I missed what Stan said. However, I can share that in my family banking system. For example, I have policies on my daughter. My sister and her family have policies on their children and themselves. My other sister have policies on themselves and their children. Not all of them are whole life, some of them are for long term planning term policies, maybe we'll convert them later, but they all make up our big family banking system. And as long as you have an insurable interest in somebody, then you can use them.

As a life to insure as part of your family banking system.

Awesome. Thank you. Liz and I have somebody that looks like they're itching. Jason, can you share us a little bit about your family system or how that's going?

And how did you see that off camera there?

Yeah.

You know what I would, what I would share with everybody is that, you know, in our family we have 77 policies. Our journey with this process began in 2008. And we didn't start there. We began with a policy on my life, a policy on my wife Rebecca. And then our firstborn son came along and then three other children came along and I've insured my nieces, my nephews, my assistant, my business partners in 12 of our companies. The list goes on. And so much like Liz mentioned, knowing that you have an insurable interest is important, but also recognizing that everyone that you have an insurable interest in is going to require the use of money. And it's not just for a short period of time, it's for an entire lifetime. And so if everybody in attendance has been exposed to this concept, typically you're first exposed to it at the individual level and you get energized and excited and start thinking about how can this concept be applicable to me, how can it be an advantage for me? And the discussions that we're having within the family banking model is that we are encouraging folks to think about their family. If you could take a moment in the chat window and just type in any disadvantage that you would find in implementing this process at the family level, not just the you and me level, but the family level in the chat window, type in any disadvantage that you can think of to doing that. Can't do it fast enough. Thank you, Michael. Jason typed in 0. Some members do not pay their premiums. Evie, that's a really good point. Let me address that. So the one thing that's really important for people to also understand is that if you have a beneficial interest in someone in your family, like a child, a grandchild, a parent, a spouse, a key person in your business, or key people in your business, you can pay the premium and be the policy owner and that individual can be the life insured. And so you're still in a position of total and absolute control and you're still Implementing the process by diversifying in the lives insured. Because what's going to happen down the.

Road.

Eventually everyone who's insured is going to die.

We just don't know when.

And so when that day comes, there will be a tax free windfall that replenishes the family banking system.

And ensures that all of this activity happens without giving any of the capital to Revenue Canada.

And who here has been receiving brochures from their conventional banks on how to utilize a different process other than them?

It hasn't happened. And so can you fire your bank? You certainly can. And it's completely legal. And this is the process to go about achieving that end.

Awesome.

Thank you, Jason.

Isn't that good, Kwan?

Super good.

And actually somebody still itching.

Can you see that you're still itching? And I'll fire you. A question here because I know you mentioned it a lot about your kids. Somebody had mentioned here about siblings fighting about the money and what's left behind.

What's your solution to that?

An octagon.

I'm just kidding.

I think that what's super important is to make. Let me give you an example of something that happened. So we had a family, they've been clients of ours for about 13 years now. Transferred a policy to an older adult child.

Boy, that didn't make any sense, did it? Let me try that again. Started the policy when the, when their child was young, transferred it when they were an early adult and two days later the early adult canceled the policy, surrendered it to get the cash value. And we couldn't inform the parents because they transferred ownership of the policy without transferring stewardship or awareness or knowledge of what they were transferring. And so to prevent the sibling battles, you have to have conversations and start educating them at an early age. All of our children, that's all they've ever known is the process of becoming your own banker. They don't know anything else. They'll never rely upon a conventional bank for anything other than the convenience of debit or digital currency, whatever it happens to be when they're grown adults. And so you've got to be discussing what you're putting into place, why you're putting it into place and that.

Please take this as a piece of advice. If you take a few things away from tonight's webinar that my teammates share that are going to be absolutely incredible if you take anything away from me, take away this. Don't ever gift a policy to a family member.

It's an asset, it has value.

You can certainly sell it to a family member in exchange for all the premium that you paid. But please, if you're considering gifting a policy, I would encourage you to rethink your thinking because you're setting up the recipient for failure, not for success. And that's where all of my amazing teammates come into play to help educate and coach you on how to have these conversations with your family so that you can mitigate what Kwan shared about the question regarding sibling fighting and you can save some money on not having to buy an octagon.

And actually there's something that I can speak for my own personal situation is that my parents recently, I thought they understood this concept, but they're very different. And so they told me recently that they wanted to surrender their policy. It's seven years old. That's not happening. I will buy that policy from them and I will keep it. I will continue doing the payments, but that's my way of keeping it in the family. When they go to retire and they need money, they're going to get that money from that policy for me.

Wow.

And when they pass away, it's going to come right back to me anyway. So that's recycling the money within the family.

Wow.

And here's what's interesting. When we think of younger children, do they have really long attention spans?

No.

So when we're educating them, you've got to to introduce some a little bit of entertainment and make it a little bit fun and gamify it so that the kids interest and attention is captured. And one of the things that we've put into place for our family. I'll just end on this, Quan, so we can keep going on the questions. One of the things that we've done for our family because one of the questions was around, well, how do you, what do you do instead of gifting? Well, when our children are old enough to own the contracts, these insurance contracts that we purchased on their lives when they couldn't do it for themselves, our family attorney is already preempted. So heaven forbid, if Rebecca and I weren't here, the attorney is going to meet with the kids and explain to them. You, your parents don't want to voluntel you to practice this concept. They want to give you the option to opt out. Nobody's going to force you to do anything here. But here are your two options. The first option is that you shop at home for everything that you require financially and that you don't do business with someone else's bank. When you shop at home, policy loans are going to be repaid with an interest rate of 10%. And the rate is not negotiable. The time frame is negotiable. The rate is not.

When your parents pass away, you'll receive the death benefit proceeds and ownership of the contracts that they purchased on your lives when you couldn't do it for yourself. That's option one. Option two is that if you choose to shop outside the home for all the things that you need to finance throughout your lifetime, your parents will consider that a plate description of theft. And your parents don't do business with thieves. Your family banking system is a business period. So if you choose to shop outside the home, you're not going to receive any of the death benefit proceeds from your parents when they pass away. And all the contracts that they presently own on your lives will be donated in kind to charities of their choosing. So take all the time you need to figure out which option is going to work best for you and let us know.

That's great, Jason.

Isn't that good?

That's teaching them responsibility and understanding how to use this system so they could never blow it up.

And the next question, how can families ensure proper stewardship of their family banking system? John, can you address that?

Yes, definitely. It's a tough one to follow, Jason, but I'll do my best to answer this one.

The best way is to follow the teaching of Nelson Nash. We are so lucky that this beautiful human being have put on paper, clear instructions on how to go about.

Implementing this great system. And on top of that, you can reach and have a coach here on Ascenden to help you, to guide you through the process.

That's what I would say.

Awesome. Thank you. And I know, Sarbul, you've been doing something on the side family banking meetings. I know Jason does that too, but could you expand how you do that, Sarbul?

Yes.

So my daughter, she's five, going on 15 right now, so it's a different approach, discussions with her. So I tend to involve her into activities that she loves. So, for example.

Her favorite store to shop at is Dollar Store, which is fantastic. It's good. Perfect store for me. Right. Doesn't cost much money to buy things there, so. So, so we give her, you know, like $5, kind of a spending limit in a month. And obviously our first question to her is, hey, where do you think this money is coming from? Well, papa, you. You earn an income? Yeah, I earn an income. But where does this money go? Oh, family bank. She thinks I wrote this book.

Every time she sees this book. She's like, oh, papa, this is your book. I said, no, it's not mine.

Well, they better upgrade the photo on the back of it then.

Yeah, yeah, they have to. So, so. So we go to a dollar store and. And let's just say she wants to pick up a toy for like $2 or $3 or whatever it is, Right. So I purposely give her the money so she can go and do the transaction. And when we started it, she was. You know, she was very hesitant to go speak to the clerk to. To do anything. So I asked her, I said, are you hesitant because you're. You're shy of doing this or you don't know what question to ask? Which one is it? Right. And she said, well, I don't know what question to us. So then I would teach her on what kind of question to ask. I said, hey, I would like to go buy this ma' am or sir who serves on the other side. And she did that. And then, you know, she's sort of trying to do some learn math, like addition and subtraction. She's not there 100, but she would give $5 and she'll get back some money, right? So I said, perfect. So I said, you gave five. Is five more than two because you got back two and you gave up five. And she's like, yeah, five is more than two. I said, so you have the toy, but who has more money now? Because you said five is more than two.

Oh, the.

That is with the clerk. I said, so what happened there? Like, who has the money? So think it's gone. I said, perfect. I said, so this is what happens when, you know, you, You. You're doing things the way you are. But the. Here's a teaching point. You know, I don't go into details regarding family banking with her right now. She's just too premature.

Pre.

Pre. Premature to understanding this stuff. But I'm. I'm really emphasizing on. On the problem. Like, I'm. I'm getting that thing through her. Like, that's a problem. I said, because you use five to buy this toy. You have two, three is gone. Well, which means the cur is more richer than you are. So.

So.

So that's the basic stuff that we're teaching her right now.

It's awesome. It's great. And I'm. And I'm working on the same thing. That's everybody who has children, they need to be teaching their kids about money and finances and how money really works.

Yeah.

And so what resources or support are available from families looking to implement ibc. So that could be resources. Dan, I'll let you answer this one. So maybe resources within Ascendant or resources outside of Ascendant. How. How can people learn?

Oh, that's a great question, and thanks for asking, Kwan. But yeah, just in our Ascendant world, for example, we have, I don't, I can't even keep track of how many YouTube videos we have on our, on our podcast, on our channel for YouTube. And then we got the podcast channel again, a great resource for people looking to implement the infinite banking concept.

So, you know, it's already been brought up. There's the book called Becoming youg Own Banker. That is still the fundamental, you know, the foundation I talk to everybody about. You need to get a copy of that book and you need to read it now. We have a client portal for our clients. There's a lot more information available there. For those people that are clients, they can literally go on there and they could spend days upon days taking in information. So it's a easy, simple place for people to go when they have a question. Because if you implement this process, I'm going to tell you one thing. You're not going to remember everything and you, you know, so you're going to have a question that comes up. Where do you go to find it? Well, first your coach and then we have a great team here. So at times, if, you know, if we need to depend on someone else, we will go and utilize that person to help what, you know, whatever question that comes up. And then there's those great sources of information available on our website, through our YouTube channels, through our staff.

We all have great support around it. It's just, you just see us, you see our faces. But we got a great team behind us. We have people that are very gifted in other ways to help you other than just talking about the implementation. There's a lot of parts that go into, you know, managing your family banking system and building your family system. So someone that does that application for you, someone that works with the Life company if you have a question. There's a lot of great resources that we have here at Ascendant. And outside of that, you can go to the Nelson Nash Institute. It's, you know, it's the foundation for, you know, all of us practitioners. And there's great resources available on nni.org so there's all kinds of places you can go and find support. I would suggest that, you know, have, you know, set up a meeting with one of our, you know, great Coaches, that's a great place to start. And then after that, we can point you to multiple resources.

Awesome. Thank you, Dan. And what is the difference? Why. Why is it that we call ourselves coaches versus advisors or whatever the term is for people that do this kind of stuff?

Are you asking that question, Kwan?

Yeah, that was a question for you, Dan.

Oh, okay.

To elaborate, to elaborate on the coaching aspect.

Yeah. So, you know, it's really what I always say to people that I work with is, education's on you, coaching's on me. So this really can't be taught. It's got to be caught. And what it takes is time. You have to invest some time in your education because anything you go to do in life that works while doing takes time to do. And you have to take your time to find the information you need to help you understand. And what we do is we give you clarity. When someone starts to learn about this concept, they're going to have questions, they're going to have thoughts. So what do they do? They ask us those questions, they thought, just like we're doing tonight. And that's how you get clarity. So what we do is we coach you around the concept, and then it's going to be implementation. You're going to have questions about how should I use this? You know, now that I build an access to capital that I could utilize, how should I use it? So we're there to, you know, give you ideas, support things that you're thinking about, and just bounce things off you. So that's, to me, is what, you know, part of what we do from a coaching perspective. Quan. Awesome.

Thank you, Dan. And this next question.

What steps should a family. What steps should a family do to integrate existing savings RRSPs resps into a family banking system? Ron, I know you just came in, so I'm going to blindside you. That question's all for you, Ron.

Thanks, Juan. I really appreciate you asking me that question. So what steps should a family integrate existing savings RSPs RESPs into a family banking system? So this is really a scenario where it's case by case and a family has to commit to the process of becoming their own banker and, and really implementing these policies as part of their financial decision making. And so when you look at your wealth accumulating in someone else's bank, then you got to ask yourself, are those savings in someone else's bank really doing me any. Any justice sitting outside of my own bank? And so this is where you want to consider potentially migrating some of those funds if you have if you already have them, if you haven't started it, consider opening up these policies in place of those. So for instance, for me personally, when me and my family, when me and my wife started a family, we looked at resps as a source of a starter for our daughter's education fund. But we decided that the flexibility, the liquidity, the aspects of guaranteed low risk to us was more important in a policy where we can access it and use it over time for a number of things, well beyond educational goals. And when she graduates high school and she's looking to go to a post secondary school, we can access those policy loans to fund her post secondary education. Meanwhile, having the opportunity that once she does graduate post secondary, she, she still has access to that long after. So we just like the flexibility.

And the opportunity to control more of our money staying within our system in a policy as opposed to an resp.

Her and I made a decision long ago not to contribute into registered funds for a number of reasons. And instead we found that for us personally that we find long term growth, long term control of our finances and the things that we're going to do in the future.

A lot much more important to us in our own family banking system. So what steps should you look at? Well, look at your finances, speak to your coach, see what you can do to, if you haven't started, how can you start using those existing savings and then from there, what makes more sense to you not only as an individual but as a family unit that goes beyond what you're going to do moving forward with those existing savings? So again, it's a personal choice, but for me, I like the control, I like the guarantees that my own banking system provides. The risk that I'm taking with potentially an RSP and resp is much greater than if I were to place that risk on the life insurance company. And so when you look at all those pros and cons, it just makes more sense that my money is being controlled within my own banking system compared to someone else. So my suggestion is talk to one of your coaches and see how you can start implementing this system based on what you have and going from there.

Awesome. Thank you, Ron. And I know in the last webinar you had mentioned that you had used instead of using an rsp, you built one for your daughter and when you use that, you used some of it to go to Disneyland. Right. So I, I want to ask the audience here, for people who have policies, I'm going to put up a poll.

And the poll is what have you Used your policies for. Let's see what people are putting in that you've used their policy for. To give people an idea to imagine what is possible with a system like this. Right.

Debt recapture, family vacation, everything. That's right. That's living expenses, purchase engagement ring, buying my car, house renos, estate planning, property tax, paying off MasterCard loan buy, new policies.

Roof for my house. So the possibilities are endless because we need money for everything. So once we have a pool that resides that we have absolute control, we can do whatever we want with it. Nobody has a say. Does anybody want to jump in and speak to that or speak to what Ron was talking about?

Yeah, I just want to add to the point that you just brought up. Yeah, last time I did mention that we used our, our child's policy to pay for family vacations or at least her portion of the, of the vacation and we continuously paid it back over time and we have access to that same capital over again so that we can do other things. My youngest child, who is going to leave daycare, which we have used our oldest child's policy to pay for, part of it. Well, we're going to be freeing up about 7 to 8,000 in daycare costs annually. So guess where that's going, Juan?

Right back into your family banking system.

Absolutely. And we're going to consider opening up another policy on both of them using that capital that we've been able to fund free up based on just that windfall of no longer having to pay for the daycare. So when we talk about, you know, expanding the family banking system, look at your, your budget and look at how the money is coming in and out of your system, whether it's your banking system or.

In traditional budgets and so on. We, we just, we planned for this in the sense that we knew that this is going to come up in terms of no more daycare cost. Where are we going to redirect that those cash flow and how are we going to do it? Well, we're going to open up another policy based on that and we're going to use that for other things that we want to recapture in our life, sorry, property taxes, auto house insurances, things like those things we're considering using the new policy for. So just look at your finances, look at what you can recapture using just a simple child's policy, which we put $200 a month, which is 2400 a year and how that can go a long way. Recapturing a lot of the expenses, especially for children.

Absolutely. Thank you, Ron.

Okay.

There's one at the top here. It says, what are the requirements for you to start a policy?

I'll hand this one over to Stan. Tell me what the requirements are to start a policy.

Well, first you have to get involved with your advisor and set up a series of meetings so you make sure you understand what becoming your own banker and infinite banking is all about. And once you're crystal clear on what the system is, then you have a series of meetings with your financial advisor. You prepare a financial input form, we analyze your financial DNA, we look at your assets and liabilities. The and we get some parameters from you and we have some discussions on what a policy design would look like for you. And once we finalize that, then we get you into the underwriting process. And when the underwriting process gets approved, you get your policy contract, you settle, and then you can get going.

Awesome. Thank you, Dan and I just want to expand a little bit about that. So this question is asking about a product, right? A policy. What's the difference between a product and a process? Could you elaborate on that stem?

Well, sorry, the. Between the. The process is walking through all those steps that I talk about. The policy is actually just a tool that we use to accomplish all of this. So big difference there. The process is this whole journey that you go through and then using your policy to finance all the things in your life. Absolutely.

Thank you.

Okay, next question is a very interesting question in the chat by Judy.

I would. Jason is here. But Jason, you can expand on that question there.

Sure.

The biggest concern is, you know, and then we talked about it so many times. Hey know s blow. You're my advisor, you're my coach. God. Where something happens to you, what happens to me? Like how do I continue my journey of becoming a banker.

Right. I think that was where that question came from. And you know, we have series of steps and procedures in place. That's why there's, there's, there's a team here. So something happens to one person, the other person is going to take over the clients. There's. There's no way our clients are going to be orphaned. And then the other thing that I want to encourage and have everybody think about this is the whole essence is for us to teach you on how you can become your own banker. It's not to us become the banker for you.

You have to take responsibility of learning that.

I think in addition Sarblo to what you shared. So Dan mentioned we have a client portal and we have a treasure trove of archived resources, tutorials, the Whole process, anything we've ever recorded, we have just under a thousand videos on our YouTube channel. We have podcasts being released every week. If Ascendant Financial was tactically nuclear vaporized, tomorrow, all those resources that have been created are there. And the insurance contracts are administered by the insurance company, not Ascendant. And, and these companies have been operating in the United States for more than two centuries and in Canada for 178 years running. And so if a Senate went away tomorrow afternoon, not only would all of our existing clients still have all the access to all the resources, all the books we've written, the articles, the videos, the podcasts, but still maintain access directly to the life insurance companies that are administering the contracts. And so I think it's a great question and it's an important one to make sure that you have clarity on, but we, we have no plans to go anywhere, so. But thank you for asking.

And actually somebody ascended means ascending. So we are ascending 100%.

And actually somebody, I can't remember who it was in the chat had mentioned that they love seeing the ascended team growing. So we are ascending. We're going to get bigger and bigger, but we're still going to take care of you very, very good. Like we were a small company for sure. And this next question is a really great question, and I'm going to hand it to Jason because I know he did a podcast or a YouTube video about it. So does getting policy loans and paying these loans down increase the annual dividends you receive from your policy?

Short answer is yes. And, but let me expand and just to help everyone to, to think, think this through. So the insurance company is a business, right, Quan?

Yes, it is.

It's a deposit taking institution. So it receives money and then it has to deploy money in order to multiply it and to satisfy all of the contractual guarantees that they're legally bound to make sense. So far.

Yes it does.

And the motivation of any business is to generate profit. And in the case of working with a mutual life insurance company, the participating policyholders. So the dividend paying whole life insurance policyholders are the sole beneficiaries of the divisible surplus generated by the insurance company. When a conventional bank lends money and gets principal and interest payments back, is that a profitable transaction?

Yes, it is.

And who owns conventional banks?

Shareholders, Stockholders.

And if the shareholders were to run down the balance sheet and stop at a line that reads interest.

Does that contribute to the overall profitability of the conventional bank?

Absolutely.

So does it form an element of the Divisible profit distributed to the shareholders of the bank?

Yes, it does.

Is it any different with a life insurance company?

Nope.

And if you are receiving more loan repayments back.

That'S more capital. Agreed.

And what does the insurance company do with capital?

They give it. Well, they declare if there's enough capital. A surplus?

Well, no, they. Let's say they get money in. They receive deposits of money today. What do they need to do with that money?

They have to put it to work.

Precisely. For who?

For the owners.

And who are the owners?

The policyholders.

You got it. And so this is exactly what I wanted to demonstrate to you, was to show how we would coach somebody through understanding and having clarity. Money flows into the insurance company. The insurance company is unable to inflate that money supply, whereas a conventional bank can inflate the money supply. They do that every single day. Insurance companies cannot do that. They take the money, they put it to work. Part of deploying the capital is in the form of policy loans. They lend money to the owners of the company.

The owners of the company repay those loans with principal and interest. All of that capital has to be deployed to be multiplied. That's why policy loans are an invested asset on the balance sheet of an insurance company. And so when you think about your need for finance being much greater than your need for death benefit protection.

Where do you want your financial energy flowing.

To.

Regardless of the rate.

You want it flowing to an entity that you own and you control. And so that is such an excellent question. Thank you to whomever asked it. Thank you for asking that.

And going on to the next question that's bubbled up here. Is there a limit to the number of policies a person can own?

There is a limit to the amount of death benefit that any individual can be insured for. And so if you're insurable for a maximum of 10 million, it doesn't matter what quantity of policies gets you there. The bigger contention is dealing with the amount of death benefit that the insurance company is willing to insure you for. And when you reach that ceiling, as I have, you insure other people's lives.

All right, this next question is.

How exactly does overpaying interest in a policy loan benefit me directly?

That's a great question. Mind if I answer that? Sorry, team.

Sure. I was going to fire it off, but you can answer it.

So two things. So one.

In Nelson's book, I would encourage everybody to go and read. Make sure that you read. Let me get the page number. Read page 25. And at the top of page 25. Nelson asks a really powerful question. Would you have much of a grocery business if you were the only customer? You must build it to the point where you accommodate the needs of others in order to prosper. The same principle applies to banking. So dividends inside of an insurance company are calculated for each individual policy primarily based on what's called the contribution principle. So the more that your policy, a block of policies, contributes to the net earnings of the insurance company, the larger the share of the divisible surplus distributed. So how does it benefit you directly?

Any guesses?

Quan?

Oh, well, like you, you just explained earlier, right? The more money the company makes and the more that my share is in there, that's how much more I get.

Well, think about this.

Whose behavior is far more critical, your behavior or the behavior of the insurance company?

My behavior. Because the more I put in, the more I get out.

100%. So if you took out no policy loans for the entire lifetime of your journey and you never requested or accessed a policy loan, are you still going to receive dividends?

Absolutely, 100%.

But when you initiate a policy loan and you repay it because you're an honest banker and there are thousands upon thousands of other policyholders doing the very same thing, the insurance company will naturally have more capital to deploy. But they're not just doing it for your benefit. They're doing it for the benefit of everyone who co owns the company. Hence the question that Nelson asked. Would you have much of a grocery store business if you were the only customer who shopped there? So you have to build the business so that your needs get met and other people can prosper too. Meaning the more capital that flows into the insurance company, the more capital available to deploy and multiply. It's ridiculously simple. Isn't that good?

Awesome.

All right.

Very good.

Okay, next question.

What is the best way to approach the decision of paying off a policy loan versus opening a new policy?

Liz, is this something you want to tackle?

Sure. So one of the things I would say is sustainability. You know, if you have a policy loan outstanding for $10,000 and you have $10,000, great, you can pay your policy loan back. But do you have enough funds to sustain a policy for its whole life? So really, when it comes down to talking about expanding your system, that should be a question you're asking yourself and you're discussing with your coach. Is the sustainability that you can afford or you can maintain of the policy going forward.

One thing I always ask myself whenever I'm questioning whether I'm funding Premiums, whether it's people PUA premiums or.

Paying back policy loans is I think that I always have the whole life of the policy to pay back policy loans. And when it comes to funding QA premiums, for example, I've only got that one policy year to do it. So I always kind of take that into consideration whenever I'm making that decision. And those are things you can certainly discuss with your coach so that they can help you talk through that decision. Decision as well.

Thank you, Liz. That's a great answer. And then the next question, what if I'm not insurable?

Rick, can you answer that one?

Certainly. Thanks, Juan.

Yeah.

If you're not insurable, you can insure somebody else that you have an insurable interest in. So you could own a policy on a child, you could own a policy on a grandchild, you could own a policy on a sibling, you could own a policy on a spouse. So there's, there's lots of opportunities, even if you're not insurable yourself to use another life that you have an insurable interest in to build up cash value and build up death benefit on somebody else's life.

Awesome. Thank you. And what is the best this. The next question is, here's another one.

Compare with other wealth building strategies. Sarvalo, can you answer that one?

What's the question?

Sorry, what's the question?

How does infinite banking compare to other wealth building strategies?

So, so give me example of other wealth building strategies.

That would be like maybe we can.

Get it from the attendees. So sure. What are the other wealth building strategies? Not sure who asked this question, but if you could just put something in the chat in terms of what you think and envision as other wealth building strategies. Real estate. So Shirley. Hey Shirley, nice to see you here. So Shirley says real estate.

Real estate is one, you know our. So someone says rsp. RSP is just an account. It's not wealth building. You have to put money into mutual fund, stock market or GICs once the money's in RSP to do something with it. Stocks, bonds. Yes. See, first thing first is and then there was a question that someone had asked. I think that person, his name is Rick. If I go back on, on the chat, what Rick had asked was.

What.

Are the fees for opening and operating a policy? What is the rate of return of money invested in a policy compared to having self direct tfsa, RSP invested in quality stocks and dividend stocks?

Yeah.

This is one of the most frequently asked question that we get and it's coming from A source of always, you know, this is what the marketplace has done, right? Hey, what's, what's the rate of return on your money? What's cash and cash return. What's ro, what's, what's the dividend rate? Well, becoming a banker, it doesn't say anywhere. Maximize your rate of return. This is how you do it. Becoming a banker is a way to finance the things that you want to finance in life, which can certainly include investments. So here's two ways to go about buying things. So let's just say, Kwan, there's an opportunity for you to go invest into any sort of wealth building strategy which is going to give you 20% rate of return. Would that be exciting enough for you to put some capital in?

Super exciting.

So what ways do people presently have to go about capitalizing into that investment? Number one method is they can borrow money to invest. You know, they can borrow money as a line of credit. Heloc, Home equity line of credit. You borrow money from the HELOC. HELOC is charging you 7%, 6%, whatever the rate is and you go invest into something that's 20%. So if HELOC is 6%, you're investing 20%, your arbitrage is 14%. It's like, okay, I'm making some money, right? That's one way to do it. The other way is you can pile up cash in an account and use your cash to go buy that investment at 20%. Objective accomplished. These are two ways that most people know. The third way, which would beat the pants of the first way and the second way is the process of becoming your banker way. So I love investing, I love doing loans, I love doing mortgages, but I also love the opportunity to do that through the process of becoming a banker. So I'll build my pool of capital inside a participating dividend paying whole life insurance. And the reason why, because once I start to put money into that policy A, I immediately take care of my family through death benefit. I don't have a lease in life. If I become an angel tomorrow, my family's taken care of. The other reason why I do this is because I get to build a pool of capital. And that pool of capital grows every single day. The growth is contractually guaranteed by the insurance company. It can never go backwards, it can only go up. The growth is also tax free. And as the pool of capital builds up, I can access loans against that growing pool of capital to go capitalize on investments. And if I borrow money from the insurance company as a loan to go by investments. My pool of capital is still growing inside the policy. I'll give an example. I did a. Very Recently I invested $300,000 from policy I had about. Is right roughly about $400,000 that I can access from, from the money pool that I've created. You know, what's left over after deploying other capital for other reasons. So if you think about this, so my policy is growing every day. One, Any, any guesses what the daily growth in my policy is?

3 figures every day as I wake up, my pool of capital increases by $300.

And.

And you don't have to do anything, right?

I don't do anything. Stock market goes down, my pool of capital goes up. Now I borrowed $300,000 to put to work. Now that money that I borrowed is not my money. That's insurance company's money. I borrow it as a loan. My pool of capital is growing every day, $300. So when I borrow money from insurance company, they're going to charge interest on that money because it's their money that I'm using. So if you take $300,000 multiplied by 6.5% which is the interest charged by this particular company and divided by 365 because that'll give you what the daily interest is. Interest is charged on daily basis. The Daily interest is $53 if you do the math. And my daily growth is $300.

So how am I doing so far?

Well, in that transaction, you're ahead.

Yeah, so. So Nelson calls it create a financial tailwind by working in an environment of recapture interest. So the whole sense of becoming a banker is to recapture interest. I recaptured the cost of interest charged by the insurance company in the growth of my policy.

And I get to capitalize on other opportunities which I can build additional cash flow using whatever I want to do in those investments. So if I love compounding, I just don't want to earn compound interest. I never want to lose the ability to earn compounding on my wealth no matter what.

So anybody out there who's thinking about investing today, change the way you think. Don't just think about what you're going to buy. Think about how are you going to go about buying it. Which is the best environment for you to operate financially? There's only three environments. One environment is when you borrow money and you pay interest. That's not creating a financial tailwind. The other environment is when you save cash and you use cash. And when you use cash, you lose interest. And the third environment is the recapture interest and when you're working in an environment of recapture interest, you will always create a financial tailwind. Doesn't matter if the investment works out or not because investments have risk. It can go up, it can go down. But if you are practicing the process of becoming a banker, you never interrupted the growth of your capital and you have a plan to replenish your money. So overall your risk in building wealth goes down significantly. And if you haven't repaid the loan back and you die, insurance company will pay the loan back from the death benefit. So think about what are you going to lose.

Work in a recapture interest environment, guys, it's going to be stress free way of doing things financially. Every decision that you're going to make when it comes to money is financing. You're going to pay interest, you're going to lose interest, use the recapture interest.

That's why this process works. Yeah.

And I'll just add to that. Sarblo, if you take a look in the book on page three, the very first page of the book really where the introduction is, Nelson says this book is not about investments of any kind. It is about how one finances things of life which can certainly include investments. It's not about rates of return.

Yeah, exactly. And then Kamal posted, well, this is nice. When your investment does better than interest. Well, are you going to use money and is your objective to invest into investments which are going to help you lose money?

As a banker, when you use money, the objective is towards make profitable and risk is with any investment out there, no different than your cash. If you use your cash, there's a potential for you to lose money. But if you are becoming a banker and you have a recapture method for your money, you'll never lose it no matter which way the investment goes.

Yeah.

Because then when you do that, your money's working in two places, right?

Yes.

That's what people fail to see. They think it's do I have to do this or do I have to do or invest? And you're doing both at the same time.

Exactly. And it's nothing to do with investment. The moment I take a policy loan, I'm already ahead financially because I never interrupted the growth of my money.

When you take your cash and you go buy investments, you've transferred that money away permanently.

When you borrow money and you go invest, you're now paying interest so you're transferring that money also away permanently.

Process has nothing to do with if investment is going to make you more money or not. The process is going to work because you are Going to recapture the interest the moment you take a policy loan.

Thank you for sharing that example, Sarbill. I think it really opened people's minds to think differently, how you can do things differently.

Next question.

Well, you explained it. When you get a policy, policy loan, you are creating an extra payment on your budget. Can you explain the benefits of a policy loan?

Kind of explain that, but I'll get.

Ron, when you get a policy loan, you're creating an extra payment on your budget. Can you explain the benefits of a policy loan?

Well, when you, when you're looking to take a policy loan from your own family banking system, you have to ask yourself, what's it for? Right. And if you're trying to, like Sarvo says, put it towards other wealth strategies like investing it into other assets, well, then the benefits of, you know, taking that loan outweigh the.

Outweigh the pros and cons of leaving it in there. Your money is working in two places, as you mentioned.

Right.

So when, when you have this extra policy loan on your that you have to attribute. Well, when do you have to pay it back? Long. Who's the owner of the bank?

Policy owner is the owner of their banking system.

Right. And when do you determine the repayment schedules?

That's up to the policy owner. Right.

Right. So let's say that investment that you took a policy loan to put into an investment asset does well. You take profits from it, whether it's crypto equities, whatever the case may be. And now you have this money sort of sitting out where. Where are you going to put it now, Quan?

Well, I can sit out there and do nothing or I can put it in a system that compounds.

Yeah. And you can repay back that loan this year, the year after, next week for how much you want to. So again, when you take a policy loan.

Yeah.

You are creating an extra payment on your budget, but again, you determine what the repayment schedule is like because it's an unstructured loan. If I were to take a line of a loan from a line of credit from a traditional commercial bank, they're going to tell me that I got to pay on the 1st of the month x X number of dollars.

And I have to pay that on time. Otherwise, guess what? Right. I get my hand slapped because I'm not the owner of that bank. So when you take a policy loan to do the exact same thing, you can control their repayment schedules because it's an unstructured loan.

Well, Ron, does this payment ever end in life?

Absolutely not.

There's Always going to be a payment. Saving is a way of payment. When someone says I'm saving money, what they're actually saying is I'm paying into someone's account intentionally to save money. That's a way of payment. If you save money for property tax, you're not saving money for property tax, you're paying into an account. Purpose is to save to pay for property tax. You're always going to have a payment. The question is who needs to get your payments.

In life? Payments are not going to end. But what you can certainly change is who's going to get your payment. If you're the banker in the transaction, you get the payment, you keep the money in the family, you get to reuse and recycle that money all the time. But if you're not the banker in that transaction and you have a payment, the money is leaving you. Someone else get to reuse and recycle that money, someone else gets to build the net worth. If you want a better future financial lifestyle, think about all the payments that you're making. Well, think about how you can recapture all those payments because those payments can be source of your future lifestyle.

That's what we coach here.

Absolutely. Okay, here's another one. When I have extra large sums of financial windfall, can I deposit the windfall in its entirety with my banking system on top of my monthly policy deposit amounts?

John, can you help answer that question?

Yes, for sure. The short answer is no. You cannot just dump a lump sum into a policy. But having a windfall is always a beautiful thing. I would encourage you to reach out to your coach or advisor to know how you can use that windfall into a system of policy or policies.

What are some of their options that they can use without windfall? Where else could they put it, John?

Oh, usually when we design, when a coach help you design a policy, we always create some headwinds for you to to put in windfall or bonuses or money that comes your way so that you can recapture that amount through your system so it never leaves your family. So that's one place you can definitely put it in. And the other place, obviously, just like commercial banks, you know when they are trying to get new clients, they open a new branch so you can open a new policy or two policies or policy on family members also so that those were places you could put windfalls absolutely equal.

Nelson Nash's six Golden rule.

Have room for windfalls.

So let's ask everybody on attendance, how many of you actually have a plan to make to have a Warehouse for windfalls.

Because windfalls are going to come has to sit somewhere. How many of you have actually thought about having a plan for it?

And, and if.

Sorry, go ahead, I was just going to say. And, and the story that came to mind was when Nelson was talking to David. Yeah. Nelson knew that he was nearing the end of being here and he asked David how his policies were going. David was kind of ashamed. He said he owed 500,000 in his.

Policies because he had used all the money to buy to renovate his home.

To renovate his home. Yeah. And then Nelson says good because Nelson knew there was a windfall coming. So he's going to fill all that up. That's talking about generational wealth, that's transferring it tax free from one generation to the next. So all the time that it's been compounding in Nelson's policies continues to compound in David's policy. And then David's policies gone as kids. That's, that's how it keeps on going.

I think it ties to the first question that you had which were generational wealth. Right. I think that's where we all started the discussion today. So most of us have multiple policies. You know, we policies on ourselves, we have policies on our kids, some have policies on their grandkids. And the whole essence is for us to create that family banking system. Like we want to create a bigger pool of capital as much as possible so we can do great things with this capital going forward. We be the bank for ourselves, our next generation and their next generations to come. But it involves certain planning, involves coaching. So you know, simple example. So I have policies with my daughter and I tend to keep those policies for rest of my time on planet Earth. And we're going to encourage your daughter, we're going to coach her on how to she needs to expand or start her own start policies using her income when she gets to that stage now and when we get into a passive income time, we're going to tap into all the policies that we have in the family, including our daughter's policy. So we're going to take loans against the policy to support us in a passive income time. And nobody has a lease in life. We're going to both me and my wife going to die and then we, when we die there's going to be death benefit as we paid on our whole life insurance policies which we have and those death benefits are going to backfill the loans that we took on our daughter's policy. And then we have a plan in place that that policy that we have on daughter transfers to our daughter on a tax free basis. And now take, she, she gets a policy which has no loans outstanding and it's well compounded and well capitalized that she can use for herself. And we're going to teach her throughout the time on how she can do the same thing for her children and then their children going forward.

Yeah, because. And that's. Yeah. Sorry to interrupt. Sor. I was going to say you're, you're. It's Nelson's first rule, thinking long range. You're thinking three generations ahead.

Yeah.

See when people think about loan repayment, they think as a cost. That's in fact because we all have been conditioned to believe that borrow money from the bank, it's a loan, it's a cost. But loan and a policy is not a cost, it's your biggest asset.

And all you have to do is just remove your consumer hat and wear your banker's hat. And when you bear a banker's hat and you have the money flowing towards your system, it's an asset. A loan repayment is the best way to store more money or save more money for the next project. That's basically what laundry payment is.

So let's ask everybody. I said do you. So let's, Here's a question. Do you know how much more money do you need in future.

From now till the end of time, how much more do you need? Has anybody even thought about that?

I know this need for use of capital is just going to keep going up. That's how everything works. Inflation is going to go up, things are going to become expensive, we're going to have more kids, grandkids.

But if you just keep taking policy loans and you're not replenishing your pool of capital, you're certainly going to run out of money. And that has nothing to do with insurance company behavior or your coaches behavior. That is a behavior that was created by you because you stole the money from your system.

So if you don't want to run out of money, have a plan to pay back your loans because you want to resave the that money back in your system. It's no different than, hey, you have a phone, you buy a phone. When you run out of battery on your phone, you recharge the phone. And the reason why you recharge the phone is so that you can reuse it again. You have a car, you want to run off gas in your car, you refuel the car. And the reason why you refuel the car is because you want to Reuse the car. You got food in your pantry. When you run out of food in your pantry, you go buy food again and you restock the pantry so that you can eat food again. So you're okay restocking your pantry, refueling your car, recharging your phone. But when it comes to refueling your money, it's a foreign concept.

And money is what's required to do the things that you want to do.

What kind of a bank would we have servo if we never paid the loans back?

A bank that's going to go out of business.

100%.

Now that's a great explanation.

He talks about that in his book, right? He talks about the Midland bank in Texas that, you know, started practicing, you know, taking everything out, not putting nothing out. This is, we're practicing banking. And I think it just gets to be a point where when I think about a loan, when I borrow money for a vehicle, I was going to have to pay that debt somehow anyhow. Either I was going to pay it through saving up for it, or I was going to pay that debt by making payments to someone else. Well, so me, it's, I haven't changed what I was going to do. I was still going to save money or pay money for that vehicle. So now I just use access to my capital and I pay those policy loans back. That's an asset for me. Every dollar I pay back, I get that dollar plus more.

Where else can you do that?

If you pay back money, in this case policy loan, you pay back principal and interest and you get to reuse more than what you repaid. How many more loan repayments do you want to make? That's a simple question to ask. You can be paying 0% to the bank and you're not going to get any of that money back 100%.

Becoming a banker has nothing to do with interest rate. It has everything to do with who's controlling the function, who is getting the money, how much of the money you can reuse again. And Dan, we talked about this analogy in our live event. So let's re revisit that analogy because it's an important thing. We have to revisit certain conversation because there's nothing wrong in reteaching. So, so, so the analogy was, and we should ask all the attendees and hey, who, who here likes low interest rate loans?

That's a great question. Put your answers in there. Who likes low interest?

Why?

If you love low interest rate loans.

Of course.

Yes, yes, yes. Perfect.

Lots of wise. Now, Shirley's every day and twice And Sunday. Yes, Shirley. So here's another question. Who here likes high interest rate loans? Because everybody thinks banking has everything to do with interest rates. So this is going to simplify everything. Now, Jason says, I don't like it. Fabios. Fabio says, no. Fardine says, you're crazy.

So nobody loves high interest rates. Everybody loves low interest rates. Now, let's look at this from logical standpoint. Dan, I give you money at 0%. I'm a banker. You're consumer. I give you money at 0%, you pay me back the money. That's the lowest interest rate you can get.

Got it.

Stan, I give you money at 10%, you pay me money at 10%. That's a pretty high interest rate. Would you agree?

Yes.

So let's compare Dan and Stan's outcome. Dan has low interest rates. Stan has high interest rate. Dan, after you're done paying back the money, how much money do you have? I.

You got it all?

I got it all. Even at 0%, I gave you 50k at 0%, you paid me back principal. I got all your money back. You didn't keep any money?

Nope.

Stan, I give you 50k, 10%. You pay me back principal and interest on 50k. 10%. How much money did you keep?

Nothing.

Nothing. So Dan at 0%, kept nothing. Stan at 10%, kept nothing. So how is interest rate a factor in building wealth here?

Money is gone. In both scenarios.

Banking has nothing to do with rate. If you want to come out ahead financially on. On things that you want to finance and you're going to finance everything that you're going to buy in life, become your own banker. Because this is an environment of recapture interest. And when you work in recapture interest environment, you will come out ahead. And it has nothing to do with the interest rate.

100%.

And that goes Back to page 85 on Nelson's book.

If you knew a passive income time that you would, you would be getting everything back that you paid into system tax free, would you object to putting more money into it?

Right. Reuse and recycle all of your money.

Yep.

Okay, here's a question a little a more specific question. Jay says he needs to purchase 56k of equipment for his business. He has the cash as well as cash available in his policy. Should he take a policy loan or use the cash on hand? That's a great question, Jay. And I'll get Dan. Can you answer this one?

Hey, that's. That is a really good question. And if you just go back to what Servolo was talking about, when he talked about, you know, lending me money at 0% interest and Stan at 10% interest.

If you spend that money on the equipment, how much are you going to have after?

And so if you're saying, should I use the cash I have available on a policy, through a policy loan, well, you know, that's what we teach people. We teach people the utilization of their system. And so what should you do with that 65,000? Well, that's something that if you don't put it somewhere where it's going to grow uninterrupted for the rest of your life, it's gone.

And so you would, you know, if I'm coaching you, I'm saying, is there a way to get that 65,000 into your system so that it grows uninterrupted for the rest of your life?

So, short answer is.

Should I use cash value to take a policy loan or should I use cash on hand? Every. I'm going to coach each time.

To.

Use your cash value and let your money grow uninterrupted. But, you know, the thing is, you have to find a home for that 65,000. That's, you know, works for you.

Okay, starting to run numbers questions aren't getting voted up as much anymore. So if you guys can keep at that, keep clicking the thumbs up button. This one is.

This one. I don't know what that means.

Here we go.

Can you recapture tax that you pay to the CRA, both professionally and personally? So that's.

Yes.

What's that, Sarval?

100% yes.

Yes.

Did you want to expand on that?

So I'd rather share a webinar that attendees can watch.

So.

Tax is just one payment, like one type of payment that you have to make. But think about other things that you're also paying for, like property tax, car insurance, home insurance, vacation, personal tax. If you're business owner, you have personal payroll. If you're a business owner, you have corporate payroll, you have corporate expenses. So think about how you're going about paying for those things. First things first is again, payment, right? We talk about payment. You have to pay into savings account to save money. So the money is there for you to pay the bill. So you pay money into an account that just says property tax and you can do whatever multiple you want to do. I'm using 10,000. You can make it 100,000. A million dollars, it's going to be the same outcome. So you make payment into savings account that just says 10,000 for property tax. And then when, when they come to Pay property tax. You take all that money and you pay a property tax. And next year to make sure the money is available for you to do the same thing because it's due every year, you resave that money again and then you reuse that money again. So, so what happens in a bank account is it goes up, it goes down, it goes up, it goes on. You're able to use the money for the price purpose of accomplishing the objective. But all that financial energy is gone. And here's a simple method you need to know. If you, if you spend $1 on anything that you want to buy, in this case property tax or, or personal taxes or corporate taxes, you will have $2 less 10 years from today in lifestyle money to spend. That's how painful it is to pay cash. Because once the cash is gone, you can never reuse and recycle that money ever again. It's not earning any interest trust for you, it's permanently gone. On the contrary, our clients, they put that money inside a policy.

And once they put that money inside a policy, that 10,000 will grow and compound forever. It's going to become 15,000, 20,000, 30,000, 50,000. So it's going to continue to grow, which means your future lifestyle. You'll have more of that money to spend just by parking that money once inside the policy. And when it, when time comes for you to pay for, in this case property tax or corporate tax, whatever it is, you take a policy loan and you take insurance company's money and go pay the tax or whatever you want to use the money for. Your money is growing forever inside the policy. And to make sure that you have the money again next year because you need the money again next year to do the same exact thing. All you have to do is just resave that money back inside the policy. By paying back your policy loan, you're only doing with the bank, you're already paying into bank, using the money and then repaying into the bank. You just have to do it inside the policy.

So you can still get your objective accomplished, but you will create a stronger future lifestyle for you. Because you're going to have more money to spend because that money that you put into policy is always going to continue to grow. It'll never stop growing for you.

So I just use 10,000 example, but it could be for 100,000 for million dollars. So we worked on a client case very recently. This client has quarter million dollars of payroll expenses from his business every month. And we're going to show him how he can recycle that money through his policy so he can still do the quarter million dollars, but recycle that money so that that quarter million dollars once parked in the policy becomes multiple of million dollars that he can spend in the future. But if he doesn't take action on the policy and he continues to do what he's doing, he's going to transfer all that financial energy away from his business, which is him going forward. That's a big cost of loss opportunity. You can do IBC without changing your cash flow, without working any harder, without taking on any risk.

All you're doing is adding one extra step to the process that you already are familiar with. But when you add this one extra step to the process, you're actually controlling and owning the process now versus what you're doing today to flow money. You're not controlling or owning any of that process.

Thank you, Starblow. And yeah, you have, you have a webinar on how a family can do this. Right. And you don't have to be rich. It could be anything. It could be charitable donation, anything. So.

I don't know if somebody on our team has. Yeah, Liz sent the link. So if everybody wants to watch out, there's the link to learn how you can do this.

Awesome.

This one. How quick can we access money from opening it? From opening it if it's just for me, my pets and my loved ones? I don't know what that means with the pets, but. Stan, can you answer this? How quick can you access the cash value once a policy is settled?

Well, once you settle your policy, you're going to start making premiums and depending on how you do it will determine how much cash value you have. So if you really want to get going quicker, we always recommend doing an annual premium. Therefore there'll be more money in the system. And it's just the net present value of the money. If you put in monthly, it takes a little bit longer. There's other things we can do as well, like for example, we can back data policy 364 days so you pay the previous year's premiums and then you can get access to that money very quickly once you settle. So it all really depends on how you get set up and your coach will be able to help you decide that.

Awesome. Thank you. And actually, I just want to kind of take a pause from the questions. I'm going to pop up a little. Value check.

Value check. If you guys could type in. If people can type in guys and gals. One, I haven't learned anything and anywhere in between and 10, your thinking is expanding or it's changing.

Let us know if we're adding value.

Infinitely. I like that. 1199, a thousand.

Awesome.

Okay, here's another question.

Give me a second to set this up.

Coming up to the hour one is.

Is it okay if I just say one thing? There's, there's one thing in, in the chat where someone says, you know, what's the cost of doing this policy and things like that. So guys, here's something that you have to take away. If, if you build your lifestyle, if you finance your lifestyle for whatever you need money for using ibc, it's actually inexpensive way to do it. It's more expensive if you don't do it through ibc.

It'S the other way around and it has nothing to do with policy startup cost or yada yada yada because you need money for till the end of time. So think about that span the 10, 15, 20, 30 years that you have and you're going to need money for all that time. When you flow that money to ibc, the overall it's going to be inexpensive way to get to your financial objective is more expensive if you actually do it without ibc. I also did a webinar on that with my fellow friend Dan, kind of comparing that analogy.

So.

I have an interesting question here. This is by Anonymous. How is infinite banking different from Buy, borrow and die strategy? I'm not too familiar with. Oh shoot. The person I wanted to chat with about, he's not with us. So I, I don't know that strategy. I know Roman had mentioned that strategy. I was going to get him to answer that. So if anybody else on the panel, if you guys know that strategy, then you got, you can pick up this question. But if not, we'll move on Buy.

Borrow and die strategy.

I don't know what that is.

Buy, borrow and die sounds like life.

Yep.

And some people have protection, some people don't.

Okay, is there a cancellation or termination cost to these types of policies?

My question is if you understand the system.

What would make you want to cancel something like this?

Right?

Well, think about the cost of transferring all the interest away from you when you cancel the policy because then you cannot use the system to keep the interest working for you.

And I can share my I and I'll go back again to sharing my example how my parents have been building up this policy for seven years. It's growing, it's compounding, it's got live steam like in Nelson's book but they don't understand it so they wanted to cancel it. And I, and I look at the growth inside that policy and the cash value accessible and I said I'm still gonna use it for the original purpose but maybe they lost sight of what it was for. It was for their retirement to have access to tax free cash.

Or tax free.

Growth in there. And so yeah, I said there's no way they're canceling this. I'm going to buy that policy from them, I will pay them and then when they need money I'm going to help them out by borrowing from the policy, using the policy like it was intended to do and that's part of our family banking system and using that.

Do you suggest actually that's, that's a great question.

Ron. Can you answer this one? Do you suggest we put all our available money into ibc?

I'm going to put my lawyer's cap on or Neil's lawyer cap on and say yes and no because.

It goes to longevity. And if you've got all this available money, can you replicate this year after year to fund your annual policy premiums to ensure that your banking system continues to move on year after year? I would suggest as we do as all coaches, we sit down with our clients to assess what their financial picture looks like and see, and see actually what they can do each year and then maybe have a plan of if they have a pool of money can we do, you know, a sort of back, backdating it, pay two years up front, then save another one maybe in a GIA account or for a few years. There's a number of ways where we could start putting that pool of capital that's sitting idly or in someone else's bank to work. And you've got to ask yourself, you know, what's the objective? Why are you starting this policy and how much do you want to start with based on what you've got? So I would suggest speak to your coach, sit down with them, lay out your objectives, get a clear concise of what your goals are both financially, personally, family and health wise and see what you can do with that pool of capital. But would I suggest that I try to do it simply because either it's starting a new policy, paying an annual policy, a loan repayment to my policy so I have reusable access, reusable capital that I can access again tomorrow and again it's just what your situation is. So.

Yes and no.

Yes or no.

Thank you. And then just to add to that, do you suggest putting all our available money into ibc. And Nelson spoke to that in his book. Right. When people first learn about this.

They want to go in and dive deep. And Nelson said it takes an average person 20 years to be able to do something like this. So it takes time to build something. It takes time and it's long range planning to get that accomplished. And people do get there, but it's not, it's not a quick fix.

Well, IBC is a process, right? It's not a product bank is a process which includes few steps. Deposit, bottle, replenish on profit. All that can be done in IBC using all your money. Money doesn't mean, it doesn't mean that you have to just put all your income as premium. It can go as premium. And replenishing using loans, that's the essence of becoming a banker. Because right now all your income is flowing to the books of someone else's bank. Your deposits, your loan repayments, you just have to redirect everything through the system of ibc, which includes the same thing, the deposit and the loan repayment. You're familiar with both.

You can expand your System to do 100% of these two things for your family. It's possible. We've done it.

Yeah, that's well said, S. And I think Nelson's wording too was you build a system to accommodate all your money. Doesn't say you build it to put.

All the premium in.

All the premium in. It's to accommodate all your money.

And then. Okay, the next question, I don't know what this means. So whoever wrote this minimum time period for this policy, I don't know what that means. I have an idea, but if we could get some clarification on that, that would really help.

And Kathy's question about can I use a policy loan to cover pua, would that increase the compounding effect?

Stan, can you help us answer that question?

Sure. Thanks for your question, Kathy. Yeah. There's a lot of different things you can do to cover off the pua. You can use a policy loan, but you have to make sure that you have enough cash value to do that. And you have to also make sure you have a strategy to pay back that loan. So yes, you can do that, but I suggest you have a longer conversation with one of us and we can help you determine what your best course of action would be. But your, but your cash value and your policy is going to be compounding regardless of what you do. If you keep paying your premiums, keep things in force, your cash value is going to keep growing every day.

Absolutely. Thank you. And then.

Yeah, paying back. Your next question. Paying back the policy loan versus the premium. An ADO increases cash cash value the same way or does one increase the cash value more?

John, can you help us answer that question? I'm assuming that person saying ado, that's the same as EDO or PUA inside the policies.

Oh, I can't hear you. You're muted.

Thank you for letting me know. So does paying back the policy loan versus the premium EDO increase the cash value in the same way? So with the knowledge I have is paying back a policy loan is not impacting the same way as paying. When you're paying your premium and your cash value, that's my 2 cents of it. I don't know if Dan has any other.

Information regarding that question.

Yeah, it's a really good question, John. And so people will ask this quite often. We get this question often. And so it's, you know, if you read into the book and especially when you go through the equipment financing section and then Nelson will speak about in that section of the book, well, what increases the value of a policy, it's going to be premium. So premium is what builds your policy stronger. Now as you pay back policy loans. Yes. You get access to every dollar you pay back plus more because your cash value would have been growing during that same period of time. So it's still important a to pay as much of your optional premiums as you can because that's going to buy more death benefit. And if you understand the product, what we try to do is push the death benefit up because the cash value has to rise to meet the death benefit at age 100. So if you, you know, you always want to have a plan to pay back policy loans, but it should be a priority to pay your premiums. And whether you pay premiums through, you know, practicing what Nelson taught, which is pay yourself back at a higher rate. If we go back to the grocery store example where he Talked about paying 62 cents for a canopies versus 60 cents which the, which the price was on it, that's all about putting more capital.

In your business. And that's what paying premiums does, is puts more.

Death benefit which ends up giving you more cash value over time. So long answer is have a plan to make pay your policy loans back.

But pay as much as you can of the available premiums through paid up additions that you can each and every year that'll help your system get stronger.

Awesome. Thank you, Dan. That's very clear.

Absolutely and also Dan.

What are the terms? Like we had spoken about this. I know Ron's talked about it and then Liz has talked about it too. What are the terms on the policy loan versus what that PUA and edo? What's the time frame that that has to go in?

Yeah, so that's a great question. And it depends which life company you're working with. But some life companies limit you to put that paid up addition amount in annually. And once if you don't put it in, you can't put it in anymore. So then if you have a choice at the end of the year, am I going to put in my paid up additions, rider or optional premiums, whatever you want to call them, flexible premiums or I'm going to pay back my policy. That loan at that moment you're further had to put it in as premium. But still I still got to go back to is if you don't pay your policy loans back, all you're doing is leverage and it's not the way the system was designed. System that Nelson designed is five golden rules. You know, think long range, don't be afraid to capitalize. What's the next one?

Don't steal the piece.

So he's talking about having a plan to pay it back. Now we already talked about it tonight. We heard about it from, you know, different people talking about Nelson, even himself at the end, he says create room for a windfall. So later in life, and every example that, you know, Nelson shows in his book, he shows later in life people will actually take capital out of their system through policy loans and not pay it back. So they're creating room for a windfill. But when you're banking, when you're in life and you're utilizing your system, you need to make sure you're putting energy back in your system, not just taking it out. Because if you do, all you've done is leverage and leverage fails over time.

Absolutely. Thanks for those wise words, Dan.

All right, we only have a few more questions left, so we'll finish these off and then we'll call it a night. When you use your money, they must be put back with 10% interest, correct? That's what the person's asking. Or is the interest rate set by yourself? So I think there's a little bit of confusion there. We were talking, Jason was talking about 10% because that's what he does in his family. But Stan, is this something that you can give clarity on?

Sure. You're talking about the 10% interest.

Yeah.

No. So like really what that's doing is you, you know, that whole 10% is you're putting back more in the system than you have to. Like the company that we like to use for infinite Banking, Equitable Life, or any other insurance carrier for that matter, they set what the interest rate is for policy loans. And when you pay back more, if you have the room, you're going to pay back your policy loan quicker. And if your policy loan, let's say if your policy is capped out with your EO and your premium, you could take extra interest money that you can afford and start another policy. So you've got a couple of different ways that you can use that interest payment. So Nelson always recommended paying yourself back more to be able to get rid of that loan faster again or perhaps start another policy and expand your family banking system.

Absolutely, Stan. And then just to hit it home, does the interest rate matter?

No, doesn't matter. You have to have it coming back to you, to your own system.

That's right. And I love Sarbo's example with you as one person and Dan. Yeah, right. The bank always gets the money.

That's right.

So why not be the bank?

And Jason explained it really well earlier. You know, when you're using your own system and your own bank, when you're paying those interest payments, that's part of the profits of the insurance company. When you're a policyholder, you're an owner of that company. So in essence, those dividends that are coming back to you are part of the profits. So it's a win. Win.

Yeah, good point, Stan. And the other thing I'd like to reinforce is Nelson multiple times in his book, he says if you don't understand this, go back and reread their grocery store example.

And what is it that Nelson wanted people to understand in that grocery store example is it's really about, you know, putting more capital into a business creates a stronger business. And so when you pay your interest back at a greater rate than what the life companies asking for, the only way it makes a difference is if you're putting that incremental interest in some way as premium. And that's what I coach people on. Figure out a way to put that incremental interest in as premium and your system will get stronger. Now, we all set self rates that we're going to pay back our interest at. Life companies are going to set a rate just like Stan said. And you know, you want to practice what Nelson taught you, always go back to the book. He said in his book under use it or lose it. He talked about economic value added. That means you place a value on your money and there's a cost to it. So when you pay interest at greater rate than what the life company's asking for, you're practicing economic value added principles.

Absolutely. Because there's no free lunch, right?

Yep.

And then this other question, the questions that you have, Janine here, please explain what bank investment risk means. I'm not familiar where, how that came up in the conversation tonight. And when banks don't allow you access to your money, isn't that illegal for them to do?

That's maybe not the best place for us because we don't.

We'Re not licensed to deal with that stuff. So I'll skip that one. And then the last question, minimum time period for this policy. So that's, I'm going to assume that this person's asking it, how long do I have to pay the policy? And things like that. So who do we have here.

Ron.

Is that something you, you can touch on, on like what these policies are? I guess a little bit how they're structured, how long can you pay into it? Maybe talk about if we're using it as banking. Does the bank ever, does the bank ever stop us from putting our money in inside their bank?

Yeah.

So I mean again I'm not sure what exactly they're trying to understand or ask us here.

But when we look at a policy, it's a participating dividend paying whole life insurance policy. So you're looking at this as a whole life. Right.

We are able to help you design a policy that will maximize your family banking system so that if you do decide to fund this policy over the lifetime up to age 100, great. But there's also other ways where we can fund this, these policies, your family banking system. So that at some point, you know, as Nelson describes, he, he uses the analogy of taking a pot of room temperature water and when you put it over a stove and turn it up, well, it takes a few minutes before it starts to boil. And then after it starts to boil, guess what happens? It produces live steam. And so he uses that comparison with, you know, your family banking system that it takes a few years to capitalize and when you do take capitalize your system, it does eventually start to produce live steam that it can be self sufficient. And by talking to your coach you can find out how that, how that can happen. And so when we look at a minimum time period for this policy, I'm not sure if it's paying into this or how long you own it or, you know, what you can do with it during that. The time that you have with it. So again, I hopefully. I answer the question. I'm not sure what the exact question was behind it, but I hopefully answered it.

Yes. Thank you. Thank you very much, Ron. I think that's. That's kind of the same. Same thought process that I was thinking. So I don't know if we touched it. It was the last question, so I want to wrap it up. I have one more question. How do you like this format? Did you get tons of value? Should we do this again?

If you guys can put in your answers, that'd be some great feedback.

And then the other thing is, if you've learned something or you want to learn more tonight, reach out, call the number that my teammates have been putting in in Canada or in the US and we'll absolutely help you.

Our.

Our goal is to help you understand this so you have clarity, and that way you have the confidence to make a decision if this is good for you. And there's no sales pitch, no nothing. It's just a conversation. Awesome. Okay. Yeah, I guess that's all we have for tonight. We answered all the questions, and I love the interaction. Thank you, everybody, for putting in your questions, and we'll let you know when the next one comes.

Bye, everyone.

You can tell really fast if someone wants to commit to doing ibc the.

Way is designed to be done, which.

Is really stage three, stage four, or whether they just want a safe place to store money. But the biggest issue is when you commit to a lower stage but think you should be able to do all the fun things that people are doing on stage three and stage four and.

Have it make sense. You have to add intention.

Money has to be put in on purpose in advance.