Jayson Lowe says traditional retirement planning through RRSPs and TFSAs leaves you vulnerable to market risk and unpredictable taxes. He proposes becoming your own banker instead, so money stays in your family rather than flowing to banks, using strategies like recapturing vehicle financing costs.
You don't know how long you're going to live for. So we're basically piling up a whole bunch of money and hoping that it grows with no hedge against it losing so that you can start to draw it out later on at an unknown, probably a higher tax rate. And you don't know how long you need it for, so you're hoping that you're going to die before the money runs out. That's a terrifying prospect to me. That doesn't sound like a very secure, comfortable, cash confident type of retirement plan. The traditional model is always about saving money in someone else's bank and putting money at risk and sending more of your hard earned money away from you and putting it out of your control, thinking that somebody else can do better with your money than you can. And it's absurd, it's ridiculous. Think about it for a moment. What do banks do? Like, banks are really good at generating profit. They're really good at creating wealth, aren't they? Not really. For you.
The traditional retirement and financial planning strategies simply do not work, period. Stick around to the end of this video. I'm going to show you how to retire earlier than you think. So the traditional financial planning model, I mean, God bless my good colleagues out there showing people how to, you know, set up a retirement account or put money into an RSP or save it in a tax free savings account or pay off their debt quicker or whatever it is, that's really great. Okay, but if traditional financial planning models are so sound, you know, and from a high level, what is it? Pile up a bunch of money into an rsp, so stick that money outside of your control, put it at risk, you know, and hope that it grows. Right, Hope that it grows. And then every single dollar you take out someday one day down the road has to be taken out at an unknown tax rate. And, and you don't know how long you need that money to live for or last for because you don't know how long you're going to live for. So we're basically piling up a whole bunch of money and hoping that it grows with no hedge against it losing so that you can start to draw it out later on at an unknown, probably a higher tax rate, and you don't know how long you need it for. So you're hoping that you're going to die before the money runs out. That's a terrifying prospect to me. That doesn't sound like a very secure, comfortable, cash confident type of retirement plan. Is that how wealthy people think? Just because I'm 70 or whatever. I'm going to start or stop accumulating and amassing wealth. No, I'm going to continue to accumulate and grow assets and build wealth for my entire life and not only that, have an impact on the next generation. Traditional financial planning is absolutely ridiculous. It just doesn't work. I'm not saying that there isn't room for some of those strategies and ideas, but just the traditional model is always about saving money in someone else's bank. Bank and putting money at risk and sending more of your hard earned money away from you and putting it out of your control, thinking that somebody else can do better with your money than you can. And it's absurd, it's ridiculous. Think about it for a moment. What do banks do? Like, banks are really good at generating profit. They're really good at creating wealth, aren't they? Not really for you, but they are good at generating wealth for the shareholders of the bank. But do banks do what we're taught to do? To take your hard earned money and invest with risk? There's nothing wrong with taking risks, but that's not what you have to do in order to grow wealth. That's simply just not true. What banks do is they lend with security and they create income streams from lending money out. And what you do is you go and borrow money from banks and you make payments to them. So by implementing the process of becoming your own banker, by controlling the banking function as it relates to your needs in your own life, you're already sending a bunch of money away and making payments and putting deposits into, you know, RSP accounts and whatnot. If you became the banker, instead of that money flowing away from you to someone else's bank, it could flow back to you. So the problem that people are facing is that money is always leaving. They're always making payments and always making deposits into Savings accounts, into RSPs and hoping that that money grows. The money's always leaving. That's the problem is you don't have enough capital, you don't have enough energy to take advantage of opportunities that are going to come up. And you don't, you don't have cash confidence because you earn the money and it le leaves right away. And you're sticking money in some kind of a financial prison so that when a large expense or an opportunity comes up, you got to go borrow money from someone else's bank and jump through all their hoops and qualify and make a payment to them, adding even more risk to your financial plan and your life and your potential for creating wealth. Money's always leaving. So if I could become the banker, if I could control the financing function as it relates to my needs, I would have money flowing back toward my family rather than away from my family. And would you object to having any more money flowing back toward your family? How much better are you going to be off if you could find a way to finance just vehicles? Think about vehicle financing for a moment. If you could find a way to get back all of the money that you spent financing vehicles over the course of your lifetime, or retain all of the money that you're going to spend financing vehicles for the rest of your lifetime but still get the vehicles, how much further ahead? If you had that 100, 200, $300,000, and that's not an unrealistic number, this is the amount of money that we're spending on the low end on vehicles in Canada. Depending on how old you are or what you've spent through your lifetime, if that money was sitting in your retirement account, whatever that account might be at the time of passive income or retirement, how much further would you and your family be ahead? I don't think you'd object to having more money in your account. So how to retire much earlier than you think. It's by controlling the banking function and having the money flow back toward your family so that you're the one collecting and accumulating the cash. So what do you have to do? You have to check out the playlist to my left here and you have to get yourself educated. And what? Okay, continue to consume the content. You got great value out of this video, but we're just getting started, so make sure you click the playlist beside me and go ahead and click the link in the post description below so that we can get in touch and we can answer some of your questions.
