The Ultimate Defense Against Economic Uncertainty

If you were Brian, you had $30,000. Where are you going to store the $30,000?

Commercial bank that gives you back the $30,000 minus the fees and minus the transactions, minus the headaches.

Or I'm going to take the $30,000.

And put it into the container that's been created for me since five years ago. That gives me an extra 7,000. One tip we're going to go through safeguarding your wealth. And one of the things that's actually important for us to really dive into.

Is let's take a look at the.

Context of the situation of where we are. I think it's important to recognize that.

There'S certain things that our media will.

Share with us and there's also certain things that may or may not be shared with you. So I just wanted to give a little bit of a vantage point. And what I'm sharing with you is from Statistics Canada and actually from a website, it's called trading economics.com and what they do is they gather information on the state of our economy. And in my opinion, it has a lot more objective point of views. There's just not a lot of information interpretation behind it. What you see is Canada's GDP annual growth rate shows that it's actually expanded in the fourth quarter of 2023 by 0.93. Now that's just at the end of December. I think we all know in December, usually people do their specific holiday shopping or there's a lot more spending that happens. But one thing I really highlighted is that you can see is there's a red arrow going down from that point where at Some point of 2020 the GDP was actually going down significantly. Of course we know what happened during that 2020 time, which included lockdowns. And then there was a big burst that happened since things have got lifted up and then afterwards, over since then, until 2023 until now, you can see the growth in terms of Canada's GDP has been going down. Why is GDP important?

Well, GDP is important because it actually is a measure of spending activity that.

Happen relates to the economy and that includes consumption, investment, government spending.

So if the GDP is starting to shrink, it's an illustration to show the.

Activity that's going on is going down.

Now the next thing I'm showing is here, there's Canada's composite, which is a.

PMI that's showing the S and P Global Canada Composite. And for those of you who don't know, this is more specifically focused on the manufacturing. Based on this measure, you can see the production of Canada and what is happening in that manufacturing sector, you can see it starting to go down on quite a significant basis. And I, I think we can kind of start drawing some clues together on.

What has been driving the production or.

The GDP going down. The next thing I want to share.

With you is this looks like it's.

Going up, but it's actually on the opposite direction.

And this is where the value of.

The Canadian dollar relative to the US dollar. So what this is essentially saying is where I'm showing The screenshot, the 1.3712 is showing, the Canadian dollar relative to the US dollar is much more expensive. So for getting US$1, you actually have to pay $1.37 in Canadian dollars. Now, that's just the trading rate.

On top of when you exchange money.

There'S also a little spread that the financial institutions will take, and it ranges anywhere, actually, from what I've learned Now, is about 4%. So if you were to exchange to get one US dollar, you would need to give up $1.41 in this context here. So what that actually means is let's just call it material finished goods or.

Pay for things that are outside of Canada.

You actually have to spend more Canadian dollars to pay for it because the US Dollar is the global currency that everyone's using.

What really brought into the context of.

Why everything started to go down, and.

When everything started to go down, it actually coincided. What you can see here, interest rates. And when it came to Canadian interest.

Rates, bank of Canada is actually responsible for what's called monetary policy.

And when it comes to monetary policy.

They'Re responsible for setting that interest rate. So back in 2022, April, the interest rate was 0.25.

And you can start seeing these stair steps. And just to kind of highlight a.

Little bit of these stair steps, these.

Stair steps basically represent the amount of.

Times the bank of Canada has increased interest rates. So if we actually take a little bit of account towards it for, so 0.25, 1, 2, 3, 4, 5, 6, 7, 8, 9, 10.

So the bank of Canada over the two years has increased interest rates actually.

Quite significantly from 0.25 to 5%.

They increased the interest rates 10 times.

In the last two years. So if we kind of triangulate back to some of the things that I was talking about, it kind of shows as an explanation that you can probably connect together why the productivity of Canada started to go down so significantly.

Now, the biggest thing that they will.

Share with you was we needed to.

Increase interest rates to curb inflation. And so they were trying to bring.

Down the consumption so that there wouldn't be as much spending. And that was therefore going to impact our gdp. Because consumption, as according to economists, how they measure the GDP is consumption is a component of it. So if consumption is going down, then the GDP will go down too. Now, the other thing now I want.

To put together is while interest rates are a component that the bank of Canada controls. And when they set these interest rates, while people don't just purchase and use just cash, they use what's also credit.

So they go to the bank and they may have what's called a credit.

Card, they may have a loan from.

The bank, they may have a mortgage with the bank.

All of this is loans that you.

Understand it as, but in the system.

It'S known as credit.

We look at the Statistics Canada data.

Is the amount of credit that has.

Been increasing over a significant amount of time. So the time that it was able to be shown, from 1971 until now, it's been 743 million in terms of credit that has been issued and outstanding with customers. Now, here's a thing that might start put in people's minds to see. And this is what a lot may not talk about.

And here's some context of the data.

Again from Statistics Canada. So normally the Canadian bankruptcies just hovered around, let's just call it 260 Canadian companies. But now you can kind of see from 2021, hint, hint, since some events have started to happen in 2022, bankruptcies started to go up, especially at 2023.

So as it's been going up, is there a real concern for people as it relates to those bankruptcies?

Now, if there's been bankruptcies, what about.

How they've had debt?

Usually when people go into bankruptcies, they've had debt that they can't service anymore, and then they have to declare that bankruptcy.

So what happens in terms of a ripple effect across the economy if there.

Is such a widespread amount of bankruptcies? You can see if the average is 260, it's more than doubled right now.

Now, based on all of what's been.

Going on, I'm sure you can feel the same way that is showing here. And this is what's called a consumer confidence index. And this consumer confidence index is really just some points together. But what I just wanted to really highlight is more of since 2021, since the opening of the lockdowns and everything afterwards, you can see that the confidence in what's happening in terms of Canadians has been going down.

So what does that actually mean as.

It relates to people and their confidence and what's going on? I think the general sentiment, and especially with what's going on is people don't feel very positive about that.

So largely what I've shared with you.

Likely isn't a surprise to you and the economic conditions haven't been favorable to many, including you.

So what happens to you if these conditions continue the way it is and get worse or maybe perhaps it gets better? I mean, one can most certainly hope. What's important to recognize is that in all that has been happening, you had no input and control on anything. Were you able to control whether interest.

Rates go up or down?

Were you able to control the prices of your groceries?

And what I'm just sharing with you is from Costco, just a package of drumsticks were $202. I don't know, during my time, drumsticks were not $202.

Were you able to control watching your.

Investments portfolio drop during that lockdown phase? And from the top to the bottom that you can see here, over a five week period, that was a drop of 33%. I'm sure a lot of you who may have been looking at their portfolio that was in their investments, it was definitely not an easy thing to sit through and imagine going through that for that five week period. What if you were actually going through that period during a time when you decided to retire and no longer work? So you only had your portfolio to help you during that time.

Now, how about in 2020 when you were forced into lockdowns?

Lockdowns, layoffs devastate livelihoods worldwide.

And so how did that impact you financially?

Your expenses went up. Your revenues, if you had a business went down. If you were working or you had a business, your income also went down.

Savings.

Because you had more expenses, you couldn't.

Bring in any income.

You had to draw from your reservoir.

Of money, your savings.

And if you didn't have enough savings.

You have to tap into credit or debt. So eventually, if this continues, what does that mean for all of your wealth? Well, it starts eroding and no, I'm not going to pitch to you the.

Next new and exciting stock mutual fund or etf. What I want to share with you tonight is actually talking about three bucks here. The first one is about becoming your own banker. So if you haven't gotten yourself a copy of this, this would be a really good book to get started, to really get some of the prerequisites. I'm going to talk about. It's about the importance of becoming your own banker. And this book does a really good job. It sold over 500,000 of copies, self published. And the second book that I'm going to go through is talking about this one.

It's called building your warehouse of wealth. And for those of you who actually.

Have an intrigue of reading beyond 94 pages and want to dive into the topics in a lot more detail as it relates to becoming your own banker. Now this is a 94 page book that we actually ask all of our clients to get a copy and read because that really sets the mind to see where things are.

And if you really want to get.

The mechanics or know more about the importance of building your own warehouse of wealth, this is the one I would really encourage that you get. Now, just as a selfish plug, there's going to be another one that's included which is called keeping taxes away from your wealth. I got the privilege of co authoring that with two of my team members, Jason and Richard.

And in there I share five very.

Powerful strategies as it relates to reducing taxes you owe now and into the future. So how do I know this works?

Well, please don't take my word for it. The first thing is I just kind of wanted to share with you in Toronto, Google's we have almost 500 reviews.

Just on that location. Five star Google reviews.

Now these are real reviews. We don't actually pay anyone as spokesmans.

To fill up our reviews.

These are actual people who we've helped.

And served over the lifetime of helping people. Become your own banker and be financially independent and just to share another one. Edmonton where our head office is 307 reviews.

We have other locations but we also.

Put together stories to share and you know we have a podcast also that Bay street on client success stories.

So this is not just coming from.

My mouth, please, you know we encourage you to do your research and learn about this concept.

Now as you are doing your research.

The only thing I'll just caveat to.

Say is please focus on research and getting opinions from people who actually implement.

This process and do it not just owning a license and can maybe put together a life insurance policy and then they think that they are giving you adequate information as it relates to implementing the concept of becoming your own banker.

We're going to talk about the focus.

To build and fortify your warehouse of wealth. And again just making reference to the book that we're going to dive into today.

Because.

If your wealth is important to.

You, are you going to gamble that wealth?

Are you going to defend and protect your wealth? If it's important to you, think about defending their wealth. They just think about not exposing it to market risk. Some of the concepts as it relates to, there's actually more factors that are going after your wealth.

And we're going to really identify what that is.

Because without identifying what the threats are, how can you actually address and solve those threats? So what are you defending against? Well, are you in control of market volatility?

Are you in control of changes in.

Policy for tax rules? Are you in control in changes of interest rates? Are you in control as it relates to lockdown measures? Are you in control as it relates to economic uncertainty?

Are you in control related to rises in bankruptcy? What about decreases in consumer spending?

If you're not in control of those factors, those factors are going to impact your wealth. And if you're not in control of your wealth, then who is in control? Now let's trigger a learning opportunity here. So wealth, most people just think of it as, let's just call it currency.

Or, you know, the tender that we use, fiat currency.

But wealth is actually defined in the.

Dictionary as an abundance of valuable material possessions or resources. So maybe those possessions and resources can include precious metals.

One of the main things that includes.

The encompassing definition of wealth beyond the.

Scope of some people's understanding is that it can include property that is a.

Money value or an exchangeable value. So some people will decide to put their money into real estate as an.

Example, or all material objects that have economic utility.

Like during that time when, as an example, a toilet paper, for whatever reason was the rage that people needed to stockpile it up.

Are wealth could be more than just.

A financial component that you may see.

It as if wealth is the resource. And in this case, which is money. Shouldn't we understand what is money? Well, I can just define it for you here. Just to keep it really simple. Is simply money is either just paper. So we're familiar with the paper that you can see coins or digits on a screen. Now let's dive into how money works. So I want you to visualize that there's a pool of money in the world. Someone has to have controlled where the money went. Right.

Now, before we look at where the.

Money goes, where does the money come.

From in the first place?

Well, it gets distributed from a bank and then it gets distributed amongst its approved distributors.

So I, Henry Wong, am not an approved distributor of money as it relates to it.

So someone is responsible for distributing that money. And that's where I want to start putting into the picture that this is.

What creates the banking system.

There are two global banks. The first one is called the World bank and then the second one is called the bank of International Settlements. All of the money in this world centralizes and flows through this location here. One of those divisions, as you can.

See from the bank of International Settlements.

Is they also set up shops locally.

No different than if you had a multi international company. You may have a Canadian division, you may have a US Division. Well, the banks have the same thing. There's a Canadian division called the Central bank of Canada.

Every country that's listed on the bank.

Of International Settlements, you'll see where these central banks are located.

Now, in terms of Canada's money supply.

Which is the money that's created, it's.

Created by the Central bank of Canada. So the bank of Canada is actually crowned corporation and is Canada's central bank. And it was chartered in 1934 under.

The bank of Canada act and is.

Responsible for formulating Canada's monetary policy and for promotion of a safe and sound.

Financial system within Canada.

So once it's created, it gets sent.

To these commercial banks to distribute it to the public. So anytime you needed a mortgage or a loan, you went around to one of these banks to apply for that loan and then they would distribute that money to you so that you could make the acquisition of the home with the mortgage as an example.

They're responsible for contributing or controlling or.

Managing the flow of that money.

How did they make sure everyone uses it?

Well, first the government got involved and.

They made it legal tender.

So in other words they forced you.

To use it and then they regulate and control it using legal means called the Bank Act.

And the bank act was passed in.

1871 and the terms of the act.

Provided for a statutory review of the act on a regular basis to ensure legislators update the act in accordance to keeping pace with developments of financial system.

So let's just take a look at how large this money pool is. Now what I put together is there are kind of four levels of money.

There's M0123 and if we add it all up there's 7.7 which you know, with a lot of zeros is $7 trillion.

So let's put this into perspective. I just want you to imagine how much money your family brought in pre tax last year.

So a very simple example is if both husband and wife brought in $100,000, that is the amount of pre tax income gross last year.

So you can Already imagine what that number is. So now once you've got it divided by the money pool.

So you brought in that amount.

So here's what it may look like.

I'm just using the example 100,000, and the money pool is 7.7.

So if we take a look at this 100,000 as a component of what you brought in relative to the share of the full pool, your share of.

The pool is this is in percentage 0.000001 to 9%. It didn't even reach 1%.

Then look at how much of that.

Money that comes into you that you got to keep.

So imagine all the money that flows through your hands so far. So you are bringing in 100, but I'm sure you don't keep the 100 you're kind of handling. So now I'm introducing a term. You're handling the inflow of 100, and then you're also handling the outflow of a certain amount. Now subtract all that money that goes out and add your net worth, assets and liabilities. So the money that comes in, let's.

Just say, is 100,000.

The amount of money that goes out, maybe for taxes, for expenses to live.

Interest, you name it, you keep 20,000. If your net worth was 1 million.

Your positional money that you've built up in the pool that's in your hands is 1,001,000. So putting that relatively to the money.

Pool, again, the 7.7 trillion, what you got to keep was that 0.000131, which.

Is an improvement because now you are 10 ahead, still haven't gotten that 1%. So it's just showing you how much of the money pool that's out there, that is in someone else's hand, that is in control by someone else. So someone else, which isn't you, controls all of that money supply.

And there's a system that they have, which you don't have the input on, you don't influence, or you don't have the control over. So there's other people, which isn't you, who's controlling what's going on and can negatively impact you. So here's what's really not fair for you or not in your favor. You're told to work for money.

Maybe you're exchanging your energy, your time for that money.

And as you're working for that money, that means time is being taken away from you for something maybe more important, like spending time with your young, developing children, or spending time with an elderly who's close to reaching their graduation point. For the system or for those to get more money, they can just print an unlimited amount of money with the stroke of a button. So you have to invest the energy to go through it. They can press a button. So what I wanted to go through.

Is actually a video here.

Fair to say you simply flooded the system with money? Yes, we did. That's another way to think about it. We did. Where does it come from?

Do you just print it?

We print it digitally. So we, you know, we as a central bank, we have the ability to create money digitally and we do that by buying treasury bills or bonds or other government guaranteed securities. And that actually increases the money supply. We also print actual currency and we distribute that through the Federal Reserve banks.

To make things even worse, maybe just.

To kick you while you're down, they.

Confiscate a majority of it through taxes.

So here's just a little quote and.

I'm just going to let you kind of digest that. Taxes on wages, sales taxes for spending.

Income taxes that was already taxed.

And then when you die, there's death taxes that was already on money that you've accumulated from after taxes. Very weird.

In case you don't know, we have.

A Canadian progressive tax system.

So the more effort you put in, the less of it you get to keep. And each year they also introduce new tax laws that you have no control over, you can't dispute and prevent new.

Taxes from being imposed on you.

And that's all usually designed to force.

You to pay more taxes. Just like on April 1, 2024, they increased the carbon pollution tax by an extra $15 per ton, which is quite a lot actually for people, which is about 23%.

Plus those that printed money to fund their spending over the last two years have inflation. American government printed money. So did the European Union, so did countless other countries, and they all got inflation. Tell me this, why is it the Swiss have low inflation while the rest of Europe has high inflation? Why? Because the Swiss have their own money, the franc, whereas the Europeans have the euro. The European Union printed cash. The Swiss central bank did not. The Swiss have low inflation. The Europeans have high inflation. Very simple. You print cash, you get inflation. I warned Justin Trudeau that if he printed money, we'd have inflation. I was right. And it continues because his inflationary deficits bid up the cost of the goods we buy and the interest we pay.

So if we take a look at Canada's government spending, we can kind of.

Take a look at the history of.

From now from the history of back then to where it is today. So that amount of spending has gone up significantly.

And if we take a look at what you see here, which is called.

The Canada government budget value, again, this.

Is all from the Department of Finance.

It's very, very straightforward information, public information that's already shared.

The line above zero is the amount.

Of times they've had a surplus. The amount of anything below that is the amount on a monthly basis in which they've had deficits.

And what I really want to highlight.

Is the magnitude of the deficits that they run into. So the context I just want to put together in stitching what we've just seen is spending has gone up significantly.

The amount of money that they're bringing in is not in proportion to the.

Amount of spending now.

I don't know about you, but if.

You aren't bringing in enough money, but you're spending more than what you're bringing in, that's what that deficit is. That's how big that deficit is.

And why is that deficit so important? Well, if they don't have the cash or money to pay for the spending, what do they do? They end up going into more debt. Why is the government's debt so important for us? Well, let's look at the amount of debt that they had and where that level of debt has ballooned to in this case and this billions of dollars.

But it's actually $1,000 billion, which is.

Trillion of debt for the spending that this government has been going through. So where is all this money going to come from to cover their spending and their debt? Because here's the kicker. Where does the government get their revenue? They get it from you. And it's not just by doing things like increasing taxes in one year. Everyone just thinks about the income taxes. But what about sales taxes? What about those death taxes? What about this capital gains tax? What about those carbon tax? There's a variety of new taxes that get created each year that suddenly you wake up and you're like, oh, I got some more money that's needing to pay to the government in the form of taxes. And the amount of taxes that is going to be increased on you is not just one year, it's going to go through your lifetime and that means your future generation. So before your next line or generation comes into this world, they are already burdened with needing to pay taxes. Something is wrong here. Coming into this world, they're already inheriting this debt that this government has created for the purposes of just the enjoyment. I really am going to refer to.

Because they like to impose a little bit more control than they, they do.

So I'm going to refer to our friendly aunts and uncles as Caesar and his puppet masters. Will they take care of you? Now objectively ask yourself the question, what have they actually done right since they've come here helping us. Now this is not about what to buy to build more wealth because financial entertainers say you've got to take some risk to make money, right? So are you going to risk your wealth? What I'm going to talk about today is about preventing them from taking from you what you've earned because they're gearing up to launch attacks on your wealth.

Again, I'm going to play a video and I apologize for the echo but I guess it adds to the effect.

For tonight I've been pulling pointing out that some Canadian households and it tends to be the better off households do have quite a lot of money that they've saved because there hasn't been that much to do in the pandemic. And certainly it would be great if that money could go towards driving our recovery. And I want to make an offer now to all of your listeners. If people have ideas on how the government can act to help unlock that preloaded stimulus, I am very, very interested. Maybe as Doug Porter was suggesting, it happens by itself. That's the best case scenario for me. But if people have ideas on how we can really, you know, try to unleash that and particularly unleash it in the parts of the Canadian economy that really need support, tourism, hospitality, domestic services.

So the question is, are you ready to defend it?

You see, if you don't have financial.

Control of your hard earned money, someone else is going to take control of your hard earned money for you.

So how can I get more financial.

Control for myself and my family?

Well, become your own banker. And this is where we're going to.

Really set the earmarks as it relates to building this warehouse of wealth. The first is that design and specifications of the storage container which you have control over in terms of the input.

Process of designing it. The second is putting together a warehouse.

That you own and control.

The third is putting the storage containers inside this warehouse that you own and control and having this warehouse and having.

Your storage container on top of land you co own. This is your warehouse of wealth.

And if it's built well, well what happens in there is it's a repellent.

To the banking system and the government.

And we're actually creating our own banking.

Systems through Dividend paying whole life insurance. So this is where that book comes from.

So even though it's a life insurance policy, life insurance license advisors don't have.

The training around this.

And one is to make sure it's properly designed. The second is knowing how to use it. The third is the philosophy of being financially independent. And our authentic philosophy is since every.

Coach in which we works with people like you, we all use it, it's part of our life and therefore we can teach it. We're not just talking out its theory.

And when it comes to infinite banking.

Especially with what we're going through, it.

Is a lifestyle, it's a process. And when you understand the concept of becoming your own banker, it actually becomes.

Really, really hard to go back.

So I want you to first, if you have preconceptions around whole life insurance, please free your mind from those misunderstandings. Quit taking information from uninformed opinions. I also want to set the important recognition that the whole life insurance is.

Just a tool to do the job.

And how it was designed to help.

You to do the job.

The coaching is a very important component to get it to be successful and getting you to use it. And that's what actually matters. So the first thing I want to.

Talk about is capital preservation.

Preservation of capital is a conservative capital.

Strategy where the primary goal is to.

Preserve capital and prevent loss in wealth and in uncertain time. Isn't it important to to protect and preserve your wealth? So does that mean hoarding and holding on tightly the resources that you're putting together? What if you could have access to the capital without risking your wealth?

Wait, what?

How can I access capital without risking my wealth? The tool that I'm talking about has financial guarantees built into it that the insurance company fulfills, not you. So the insurance company fulfills it. What does that actually mean? There is the financial guarantee where the cash value has to grow and equal.

The death benefit at age 100 without exceptions.

Because of that requirement, cash values can only go up. It can never go down. So before age 100, the cash premiums that go in, when designed properly, can be less than the cash value, which is also less than the total death benefit. And then at age 100, the total premiums that go into the policy is.

Going to be equal to the death benefit.

So let's just put some more important understandings around the roles and responsibilities.

The insurance company is responsible for building the cash value, not you.

So what does that actually mean? The insurance company takes the risk to.

Build the cash value, not you.

So that means the insurance company takes.

On the market volatility.

The insurance company takes on the changes in policy for tax rules. The insurance company takes on changes in interest. The insurance company takes on impacts on loss of business because of lockdown measures. The insurance company takes on economic uncertainty. The insurance company takes on rises in bankruptcy. The insurance company takes on any decrease in consumer spending. But as the insurance company is taking all that risk, they may lose money because of taking on those risks while.

They haven't in their years of existence, which is over 100 years in Canada.

And it doesn't matter because all they are responsible for doing is building the cash value in the policy so the cash value can only go up. So while the insurance company that you co own by the way bears the risk to build the cash value, you have access to the use of their capital without interrupting that increasing cash value. I also want to let you know that the cash value is outside of the jurisdiction of Caesars role of tapping into it. It gets to grow tax free because it's not income. It doesn't fall into their definitions of taxes. You can receive a share of the divisible surplus as dividends.

And for the insurance companies that we worked with, diversity. They've paid dividends every single year without a single miss.

Is there any company that you know.

Of that has existed with this track.

Record of a hundred years that has produced a divisible surplus or a profit.

And been able to pay their owners dividends?

And what if you can receive more money tax free at death compared to what you put in? How much money do you earn for.

Giving your money to the commercial bank? Nothing. Hardly anything.

And no, it's not the $50 fees.

They charge you for each transaction.

And no, it's not the $25 monthly.

Account fees they charge you.

They actually charge you for having your money there.

It's actually nothing to see there.

Right, so in terms of you providing.

The deposit to the banking system or the commercial bank as it relates to the amount of money going up, there's.

Nothing to see there. So how much do you think they earn from your deposits? It is a lot and it's actually what a lot of people may not know. And what I wanted to share with you is actually There was a YouTube that two of my team members, Sarbalo.

And Richard, have done and it was.

Talking about how much do banks make? And especially why was 2020 such a very particular point? Because that's when everyone else was required by the government to undergo lockdowns, but the bank still worked they had no issues. It was still going on and they were able to make a profit because without the banks, everything would grind to a halt.

So banks needed to exist. They were essential.

And if you go and watch this video, this video has a particular link with financial statements that are public information.

To show you how much each of those banks made.

So what I just wanted to highlight as an example is for the deposits that went in, here's how much interest they paid, 12.4 billion. And here's how much this particular bank earned as it relates to the earned interest.

29.7.

They paid out 6.7 million in interest. And then they actually earned and received.

16.77 million from that.

And then here's another one which paid out 10.2 million and then received 34.

Million out of that.

That's a pretty good business to be in. I pay nothing, limited, zilch, nothing. And I get the fuel to go make more money from it. That's a pretty amazing business model to be in. So they're making at least three times the profit from it. There's actually a lot more behind it. And they make more than that. And you already know they share none of that with you, but you're the one giving them the resource. How much does it cost you to give your money away to someone else? And so there's a concept that I.

Want to talk about, and it's called opportunity cost.

And this opportunity cost is the potential forgone profit from a missed opportunity, the result of choosing one alternative over another. So let's dive into that. What I want you to think about is when you flow money that you have and you use it to pay a credit card, as an example, money that you have, you've passed it over to the credit card company, so that money has transferred away.

When you have money and you have to pay the mortgage, that's money that.

Has been transferred away from you. When you have money and you use it to pay for food, it's money that has been transferred away from you. When you go on a vacation because you've been overworked and you're stressed or.

You want to spend really good time with your family or your loved ones.

That'S money that was used to go.

Pay for the vacation, that has been transferred away for you for those experiences or that destination or that ticket, whatever you are using for the vacation, if.

You used it for clothes, it's money that's been transferred away for you.

And you received the shirt or the pants or the socks.

So what Direction is your money moving from you toward away. It's moving away from you.

When all that money is moving away from you, how much of that money do you have today? The answer is zero. So what that means is there's a permanent transfer of money that's going away from you. You're bringing it in and it's going out away from you. So here's a big reason for that. When you pay cash, you're losing earning.

Potential, which is interest.

And when you borrow money, you're actually paying interest. There's no other way around it. So every decision you make with money is a financing decision. Notice how someone else is getting all of your money and not you. Now let's walk through a very simple example first. So Instead of paying $1,000 for groceries, what if you have the opportunity or.

Ability to put that $1,000 into the GIC that's going to pay you 5% for that 1,000.

So $50 in that one year is the opportunity cost. Let's just make the example a little bit larger. Instead of paying $100,000 groceries taxes, 100,000.

Can go into a one year GIC.

At 5% and that is a $5,000.

In the first year of an opportunity cost. If you didn't have to pay for.

That, logic tells me you are money.

Oriented to want to get more and you would put it into something safe like a GIC and get $5,000. Every time you're paying for these things, you're giving up $5,000.

Now let's take a look at this. If we take that $5,000 and we exclude compounding 20 years, the opportunity cost is $100,000. So now I want to introduce you.

To a client of mine.

Now he's age 50 and he's an.

IT professional with a corporation and he.

Earns $300,000 and he's paying $150,000 in taxes. So that's 50%.

Now, not all of you are paying 50% in taxes.

Thank all goodness Cesar didn't request that from you.

But unfortunately for Brian, he has to pay at his income level, 50% in taxes.

So he's tired of losing half of his money to Caesar and he sought coaching from me on how can we explore his situation to improve it. Now a little bit of context and this is not to discourage you because he started with this process five years ago.

He's implemented IBC now for about five years. That doesn't mean you can't have the same or similar effect of implementing ibc. Everyone Starts their journey different than everyone else.

So immediately in his first five years, here's how he used his system. He used a hundred thousand to fund.

His investments, used 70,000 to pay for renovations. He's paid for debts for $50,000.

So he's used his money early. But along the way, no matter what, Brian is doing all the work, he's paying for those renovations, he's paying down.

His debts, he's using it for investments.

Trying to get ahead and build his wealth. But when he's doing all that work, Cesar is also knocking on his door, getting some of his money. Now, Caesar has very high spending habits. Caesar also has a very luxurious lifestyle. Caesar also enjoys getting into a lot of debt. So with all of the Canadians, here's.

Actually the share of that debt and here's how much it's increasing on a daily basis.

And you know what the best part is? All of this. Cesar doesn't have to pay for it. And Cesar also has a mafia of Agent Smith's who does ensure he gets paid. Evading taxes is not a smart move.

Please don't do that.

Now what frustrated Brian even more is watching every new year all of the.

Introduction of new taxes.

So here are some of those new taxes, penalties and filing obligations. Increased carbon taxes, April 1, 2024 aka the air breathing tax, Bear Trust filing requirements and penalties. Now, it's because of all the rage and everything, but people spent over billions of dollars of professional services just to figure out what this Bear Trust fiasco was. And they were going to penalize you heavily for not filing. What about if you were in Airbnb and using your property for Airbnb? Well, they wouldn't even let you deduct it for expenses. Then they had changes to the alternative minimum tax. For those of you don't know, there's one level of tax and then there's another system of tax called the alternative minimum tax, meaning they want to make sure you are paying a minimum level of taxes every year. Annual underused housing taxes, CPP too. And then in Toronto, there's a talk about a ring tax. So no matter how tyrannical Cesar is, he's still going to get his taxes. Instead of complaining, Brian decided to take control of how he paid for his taxes. So for Brian, with some smart tax planning, with me, his coach, we set things up in a way that he can pay himself first before he paid Caesar.

As an example, employees are structured unfortunately.

In the most unfavorable way. On the Income Tax act, money's already.

Taken off your Paycheck before you even get it. So he's not in that position. But there are other people can be in different ways. But for him I'm just sharing with you, that's the important part I wanted to highlight.

Once he did that, he implemented IBC again. Five years ago we brought Clary to his financial situation. The main thing we did was prioritize. Before money got taken off for taxes or before it got sent to taxes, before it got went to the commercial bank. We prioritized the money to go to.

Him and vis a vis his system.

We focused on changing the way he was paying taxes. The way everyone pays taxes is by depositing money. So they earn the money, it goes into the bank. They set it aside by transferring into a savings account, depositing it. So they're building the money up in the commercial banks storage container. So everyone builds up their money inside the commercial bank's storage container. Brian built up that money instead built it up in his storage container which was created for him, which we worked.

Together five years ago for it.

And he has situated that in his warehouse of wealth. So he has the container and he put it into his system which was his warehouse above. So the storage container he had for five years so far he was, as part of what he had the input in that Design was, was 30,000 annually. At this point his storage container doesn't need him anymore to fund any more deposits. So really it'll last him until he's age 100. Everyone who gets confused thinking about this is life insurance and everything along those lines, like I got to fund this all the way to my lifetime. The way that we design it will.

Reach its survivability period over a reasonable time.

For him it was five years. Remember his goal now is to recapture the taxes that he will have to pay. The money is coming in from somewhere. It's getting stored in the commercial bank's storage container. Why don't we relocate the money that was going to the storage container there into the storage container here? He has that option. So let's look at the process for him over 15 years. Here's what's happening. He's 50. If he's earning $300,000 a year, half of it is going to taxes. He's handling $4.5 million. So from 50 to 65 he's going to handle and bring in $4.5 million. So Brian's 50 years old, he earns $300,000. $150,000 goes to taxes each year. So he, and he projects he's going to work until 65. His estimated cash over that 15 year period is at least 2.25 million. Remember, 50% goes to tax.

So 150 times 15 or 1 together, 300 times 15 is 4.5 million.

That 4.5 million is not going to Brian. Half of it is going to Caesar. How do we solve this problem? So here's what. It's important to recognize the situation that Brian is in. He hates seeing that he's losing 50% of his money. He can continue doing what he's already doing, using the commercial bank to stack up his money in their container to save up his tax money and then just suck it up and work hard.

And that's giving half of the efforts to Caesar.

So let's work through that math again. Money brought in was 300,000 times 15 is 4.5.

But Caesar's confiscating half of it, 2.25. So Brian is losing 50%.

Now, the second way he can go about doing this is change the way he's paying for taxes. Again, this is very personal to him. The circumstances and how things can get.

Architected may be different for your situation.

So this is not something you can actually template and follow and say, yeah.

I know what I'm doing, I can do it.

It's actually, there's a lot of things.

That get taken into consideration.

We don't want to trip things the wrong way and cause a bigger issue.

Out of trying to get out of the problem.

So he chose to use the storage container he started five years ago. So he has actually multiple storage containers. But one of them he's now dedicating to use the axis of capital for this purpose of taxes. Remember, this one is where he was.

Depositing 30,000 annually for.

So Brian is taking the 30,000 that was initially going to the commercial bank in that storage container, and he's going to take the 30,000 and actually move it to the storage container that was created for him. And he's going to keep this up.

For 15 years until he's 65.

So if we make do the math.

Related to that, 30,000 times 15 is $450,000.

So let's just graphically represent and see what this looks like with him putting no more money after 65. Let's just take a look. Does his system recover more than enough taxes by 85? So the money in was $30,000 15 times 30,450. And if we take a look at it from this specific standpoint, at 65, he's put in the 30,000 for 15 years, which is 450,000. Here's how much capital in that particular storage container. Again, he has a warehouse of wealth with multiple storage containers. But this particular storage container will have 976,195. How do I know that? Because he's following his plan. And if he follows the plan because of the contractual guarantees that are built into the tool, it's very, very predictable.

In what it's going to be. 976,000.

At age 65, he puts no more money in. But that's weird. At age 75, his capital in his system is going to be 1.5 million. He puts no more money in and he ages to 85 and his capital grows to $2,526,000. Oh, wait, let's take a stop here. His tax bill was 2 million 250. So at 85 and all of the taxes that he's already paid, his system has come back to him to give him back that capital. Because he was so dedicated and focused in putting in his 30 into transferring what was initially in the storage container.

In the commercial bank into his system.

So he prioritized the focus of the location of his deposits. Instead of again giving it to the.

Commercial bank, he's giving it to his system.

And by doing that, his system is returning him at that projection 2.5 compared.

To the 2.2 that he's eventually going to project to need to pay.

And he lives another 15 more years. Whether he lives to age 100 or not.

His system is actually waiting for him for 4.7 million.

So you can decide to end his life, or if he decides to end his life at 85, he still @ least has recaptured the taxes that he has been paying to Caesar by putting.

Only $450,000 extra to the.

Problem. He has recaptured the 2.2 million by putting less money into his system. But Brian puts 450 towards the storage container. The storage container can create upwards of 4.7 million. Brian still will pay the 2.2 to Caesar. However, at least in this case.

He doesn't walk out with having half of the money now. He actually still gains $2.

Million. So with time and financial discipline, Brian can easily recapture the money that was leaving him. Because of those taxes, Brian made.

Two objective financial decisions that prioritized him and his.

Family. The first was he redirected his.

Deposits that were allocated for taxes away.

From the commercial bank storage container into his own storage container. The second is he accessed the capital out of his storage container to pay for his taxes instead of the.

Commercial bank storage container to pay for his.

Taxes. Now you can start seeing that.

This is actually a lifestyle because you.

Want to keep everything you're doing in.

Your storage container and system instead of.

Start depending on someone else's storage container. Now here's another.

Thing. Ryan understands there's a cost to.

Everything. Money's leaving him means there's an opportunity cost. He can't earn anything on that money that is gone. When he's giving that $150,000 to Caesar, he doesn't actually know how much.

Of that 150,000 actually coming back to. Maybe he doesn't get any of.

It. Just to illustrate using his storage.

Container, how he would benefit from using.

It. Let's just take a look. If you have $30,000, you have two decisions to compare. This is not an investment that we're comparing. We're talking about the decision of.

Where you're putting your.

Deposit. Would you use the storage container that was created for you or would you use the commercial bank? Well, here's his year five to year six point. $30,000 goes in.

The storage container gives 37,000 of.

Capital. The commercial bank's storage container has.

30,000. If you were Brian and you had $30,000, where are you going to store the.

$30,000? Commercial bank that gives you back the $30,000 minus the fees and minus the transactions, minus the headaches, minus the all the extra other drama that comes with.

It. Or I'm going to take the.

$30,000 and put it into the container that's been created for me since five years ago. That gives me an extra 7,000.

012. The Commercial bank has no way of competing against Brian's special warehouse of wealth that contains many storage containers. That's just one of them. Do you think a commercial bank would actually pay him an extra $7,012 for a $30,000 deposit? Oh, no.

Way.

Never. Because we can't see how much the commercial banks are earning off of the deposits you're giving them. Here's just an example specific to Brian, how much he's gaining after five years of loyalty of building his storage container. Let's look at the long range in five year.

Increments. So five year commitments. 30, 30, 30, 30, 30 for five years is.

150. But the difference in time frame, that 150 means something different in each of those time frames. So let's just take a look at.

It. The money going in for 51 to 55 is 150. How much is that going to be as it relates to comparing the.

Commercial bank storage container versus Brian's warehouse.

Of wealth with one of his main one container that I'm sharing.

Here.

The commercial bank's container is going to give the same 150. But Brian's storage container is going.

To give him for running 150 as.

A deposit through it returns him back 210,000 as available capital to utilize at age 60. If he brings up.

150. If he gives it to the.

Commercial bank, they're going to give back to him 150. But his storage container is 267. Now at 65 is put 150 and the storage container is 343. In terms of accessible capital. 70, the storage container is 423-841-75 is 5550-76. I think you get the point here. If I go to age 100 the same 150 gives that one year the 1.5 million of accessible capital. It sounds so mind boggling. Not because it's being made up because there's contractual guarantees backed behind it. But this just shows you how much the Canadian banking system is robbing you for the deposit. So while Brian today doesn't need to fill his storage container anymore, do you think from that 65 to 70 period for which Brian is, do you think he's not going to handle $30,000 per year? He's going to need a location to store it. He's not going to store it in his.

Mattress. He's going to, he's not going.

To store it in the commercial bank. He's going to store it in his container. So if he stores it in the container, well that's where that 423841 comes in. So how many of you have given the deposits of 150,000 over a period of.

Time? Has any of them paid you any extra? No, they.

Haven'T. So this is how your warehouse of wealth works. It works differently. It's in favor for you and not them. And when we get the blessing of always being able to meet with wonderful people just like yourself, we always get the question how does this work? And when people ask how this works, they're comparing how this works to the commercial bank. If anything you should be comparing why commercial banks don't work like this. You're giving them fuel. This might be a lot of.

Information for you to.

Digest. It may be a point where you're like so confused. Please just free your mind from.

From the conditionings and the training of the commercial banking.

System. Don't hold those opinions. Explore it yourself. Look into it. Because for Brian, he doesn't just do this for his taxes. He does it with everything that.

Has the use of money and is leaving him. So when he puts it into.

Investments, that's money leaving him to another.

Location. When he takes his money and it's getting.

Confiscated. To Caesar, when initially before he started, he had some debts, well, he had to clear those debts and he used his container to help him with that because that was money leaving him the renovations, that was money that was leaving him cars. That was money that was leaving him. When you take your money and you put it into a car, as soon as you drive it off the lot, the value of the car already went down. So you are already at a disadvantage by putting money into the car. Now, logic says you would put money to where you get the highest return, but there's a practicality component to it that for your job, for your ability to live or move around the city, you need a car. Well, that's a opportunity cost that you're willing to take. So the infinite banking concept is.

An exercise in imagine, reason, logic and.

Prophecy. And so I want to leave you with.

This. You have an.

Option. First option is you can keep things as they are and continue letting.

Caesar and the commercial banks and the.

Systems that they set up bleed you.

Dry through taxes and interest on things that they.

Control.

Option two, you can choose to get this process started, reclaiming the control of your wealth and shielding it from things you don't have control over. Your journey to financial control starts.

For you and your family rests with.

You. And this has to come from having an honest introspection at this point.

And a commitment to get out of financial prison. It must be a burning passion. And we have a really good webinar in case you haven't learned about this concept yet@watchibc.com and also on our webpage, we have a webinar with a really impactful nine minute video that Jason has recorded to really help you get the gist of this.

Concept. The first thing is, if you.

Haven'T started yet, I really hope that tonight was an opportunity for you to.

Get your eyes opened to see how important it is to start taking and.

Prioritizing yourself to build this.

Container. Because as you build this container.

Over the long term, it's really going to help you out. And for Brian's case, he has.

A very clear roadmap knowing that this.

Container that he's dedicating for 15 years of funding the amount of money that's going in, which is far less to be able to recover all the money that he was going to pay for.

Taxes. So choose making the earning potential.

And all the money that flows through your hands.