This Financial Strategy Changed My Life & It Can Change Yours!

Are you all familiar with deemed disposition rule in Canada? Everything that you have in terms of capital property is deemed to have been disposed at fair market value when you die. And when that happens, what does that trigger? A tax invoice from cra? Are they going to treat you any different than any other taxpayer if you don't have the money to pay the bill? They don't care. They need the money and they need the money now. When talk about foundation of the process of becoming a banker. Now you're going to hear me use this word called interest recapture a lot. Because interest recapture is the foundation in wealth building, building when it comes to becoming the banker in your life. So you will have full clarity on what it means to recapture interest and how it relates to building wealth going forward. Infinite banking is not about changing your cash flow, changing your goals, it's just about changing the process to get to your objectives. It'll enhance everything that you're doing presently financially. All you got to do is just change the process to get to the objective. We talk about some case studies and then we'll talk about investments. We're going to talk about how we can maximize investments using this process. So there's these few case studies, Q and A and then we talk about some action steps. Becoming your banker was pioneered and authored by R. Nelson Nash, our late mentor. He's the founder of this concept. We did a film as part of his legacy. It's on nelson nashfilm.com now one of the things that Nelson used to say was everything begins with the way that you think. And many people would rather die than think. And in fact most do in the bottom left hand side. Let's just assume this is us. So we think, which results in imagination of ideas. We get creative about it. So we have ideas after we imagine and then we strategize on those ideas, right? And then we take action. Because without action, strategy is just worth nothing. And then action produces an outcome. An outcome is not good or bad, it is just what it did is just an outcome. And then the whole process of thinking starts again. So anything that we do worthwhile, financially, personally, it doesn't matter what it is. The real issue starts with how we think. So we're going to focus a lot on that. Today everything begins with the way we think. Now let's say today you have money in GIC. And for this example, let's assume it's $30,000 and this GIC is earning you 7%, which means you're guaranteed to get that 7% rate of return on a GIC over a defined period of time. Now, our GICs providing 7%. Today in the marketplace, only one close. So you have money in GIC earning 7%, and it so happened that you actually need $30,000. And 30,000 is the only money that you have which is in your GIC earning 7%. So if you need access to money, here's your options. Today. Option one is use your cash. So call the bank and say, hey, I would like to make a withdrawal of my $30,000 from a GIC because you need the money. That's option one. That's always available. The option two is you don't get the money out of GIC. Let the money sit still in the GIC and let it earn 7%. You can collateralize this GIC with a private lender. So you can get a private loan against the GIC for the same money that you need, $30,000. But the private loan, the interest charge is 12% and the condition is you have to Pay back in four years. So option one, user money. Option two, use someone else's money, but your money is earning 7%. Someone else is going to charge you 12%. So if these were your two options that you have, which of these two options will you pick? If someone goes with a private loan, you know, their mindset would be, well, if I'm owning 7% and the private one is 12%, I'm actually not going to make money because I'm going to lose that 5% spread. So let's say this person actually took the option B, which was private loan, and the money was still in the GIC 30,000, earning 7%. So borrowed amount is $30,000 and the interest charge is 12%. The loan duration is 48 months. That was the condition. And then the monthly payment based on 12% paying back at 48 months is 790amonth. And then the total repayment is 37,920. So out of this 37,920, 30,000 was the principal that was repaid, and 7,920 is the interest paid at on at 12%. Did this private loan interrupt the growth in the GIC? So $30,000 in GIC was earning 7%, and over 48 months, GIC account value is 39,003, 23. So the interest earned in GIC is 9,323, but the interest paid on private loan is just $7,000 at 12%. Yeah, it just won't make any sense. If I'm earning 7 but I got to pay 12. I am actually going to lose financially. But when you do the math, when you see the numbers, this person actually made a right decision and they came out ahead financially. Most people when it comes to making decision financially, it's always based on rates. But in this case, I'm here to coach you on that. It's not a matter of rate, it's a matter of how does the transaction work. The 7% in GIC was compound interest, so they were earning interest on interest, so they came out ahead. The 12% loan was a simple interest. So as they kept paying down the loan, the balance of the principal went down, hence the interest calculation went down. If they would have went with the option two, they would have made money. Private loan interest is this much and the interest earned in GIC is 9,000. So they would have made about almost $2,000 extra. So rethink our thinking. And that's going to be the team now. We help our prospect clients rethink their thinking. And the way we do that is through education. We have a lot of resources when it comes to education. We have a YouTube channel. Our YouTube channel is called Bankers Vault. We get some amazing feedback on the content that we have. You can click on the link and hit subscribe. We post videos every second day. It's just a lot of content on our YouTube channel. Then we also have our podcast. Our podcast is called Vault without Bay Street. So we have channel for videos, Bankers Vault, Wealth Without Bay street, for podcasts. But in addition to that we also have books. Over 500,000 plus copies of this self published book has been sold in North America. Any guesses why? Because it works. If you want your hard earned money to stay in your family and have it working to generationally for generations to come, yes, this process works. So when you become your own banker, you will radically enhance anything that you are presently doing for financially, I mean anything. So whether you are looking at investing, whether you're looking at paying off debt, growing business, children's education, emergency funds, financing cars or any equipment, you're looking at finding ways to how to keep taxes away from your wealth as part of estate planning, you're looking for better ways for intergenerational transfer of wealth. And here's just a few things and the list is endless. Anything that you do today financially radically gets enhanced using this process. There's a reason why Nelson called it the infinite banking concept. Because this process is limited to our imagination. The applications are infinite. The very first principle that we must understand before understanding the process is that we finance everything that we buy. Every decision that you presently making with the use of money is a financing decision. So you either pay interest to someone else when you borrow money from a bank or third party finance companies and you borrow money to buy the things and then you have to pay the loans back with interest. So that's financing. So either paying interest to someone else to use someone else's pool of capital, AKA borrow borrowed money, or you giving up the interest you could have earned when you use your cash to buy the things you need to buy. So either you borrow money from someone else and you pay interest, or you use your own cash and you lose the opportunity to earn interest on that money. So that's why I say that every decision that you make today, when it comes to use of money, it is a financing decision. It is always. But you're always financing. So if you're financing everything that you buy, this is just a better way to finance things. Hence it'll push you ahead financially. So it doesn't matter which method you adopt. Whether you borrow money paying interest or you pay cash and lose interest, you are not just permanently transferring your money away from you, but the opportunity of reusing that money is permanently lost for generations to come. When you get paid, where does the money go? First the money goes into the bank account. Isn't it true that the bank sees your money before you see your money and then you start using the money for the purpose of buying the things you need to buy or for the purpose of paying for the things that you need. So beginning of the month you have high account balance and then you use the money to buy the things you need to buy. And then by the end of the month what happens to the account balance? Gone. You are doing all the work to earn money today, but everybody else is getting all your money today. And that's a problem. And the reason why that's happening is because on all the transactions that you're making, you're familiar with the function called banking. Because money doesn't flow without function called banking. So you're familiar with it, you're just not controlling it. The solution is becoming your own banker. When you make a mortgage payment, money goes to the bank. Correct. When you make a car payment, money goes to the bank. Money by appliances, money goes to the bank. When you remodel your house, it goes to the bank. You buy furniture, pay off credit card, take your family on vacation, you buy investments. What is happening to all the money? Is there anything wrong in now becoming the Bank. And the best way to control the process is through implementing the infinite banking concept. There are other ways to do it. The best way is using this process. Now we're going to talk about the old way of financing and the new way of financing. Because everything that we do in life financially is a measure against how someone else is doing. Let's compare A with B. And then we make a decision which one's better, A or B. So we're going to compare so old way with the new way. Now, the old way is you're either paying interest or you're giving up the interest. So you pay interest on loans that you have and you give up the interest when you pay cash. This is the old way. The new way, which is becoming a banker way, is the recapture interest method. The old process with new process. This is straight from Nelson's book. And the chapter in his book is called the Problem. Let's consider a family. The family is making 28,500 per year net after tax income. And it doesn't matter whether they're making $28,500 per year or they're making 285,000 per year or 2.8 million per year. These statistics really do not change much. So the family has a car payment about 20% of what they earn. So for every dollar they earn, about 20% goes towards car payment. They have a mortgage payment of 30% of every dollar that they earn. They have living expenses which equals to 40% of every dollar that they earn. And let's assume after paying everybody else, the family is still saving 10% of whatever they make. Now, how are people doing financially when it comes to savings in North America? Presently, not good. So I'm going to give this family a opportunity and assume that they're actually saving 10%, which they actually may not be. So these are the total payments, which is a combination of principal and interest. The red bars do not represent the interest rate on those loans. It represents the interest volume paid on those loans, the physical dollar amount in interest paid. Now, if I add up all the red bars today. So if you think about the problem, because people are chasing a rate of return, saying, hey, for me to get ahead financially, I should take the savings, go invest it, because that's how I make financial progress. But they're not realizing there's actually a problem. But let's assume that they're actually able to double the rate of return. So 10% becomes 20%. How much are they still pay on interest payments per year? Can they get ahead in life financially by just doubling their investment. If they're paying 35% to someone else to use their money and they're not earning that in the investments, I don't define that as financial progress. So if they take savings which is one step forward, saving is a good habit. So they take one step forward but they're giving away 35% in interest payments. They're actually financially going back three and a half steps. So one thing that resonated with me from Nelson's book is we can't get a better rate of return invest investing into anything without first controlling how we're going to go about finance the things that we need in life. Nelson says the process of becoming a banker is an exercise in logic, imagination and reasoning. So let's assume we are in Calgary today. Calgary also represents where we stand today financially and our destination is Edmonton. So Edmonton represents where we want to be financially. When we go up in the air we have a plane speed which is 100 miles per hour. So this represents that 10% saving with a decimal point removed. So imagine that 10% saving that 100 miles per hour plane speed heading towards Edmonton. Once we go up in the air we are actually faced with a headwind of 350mph which is the interest volume paid by the family, removing the decimal place. So if we are operating in this financial environment where we are saving 10% but we're paying 35%, are we going to get to our destination? Logically speaking, financially speaking, we are not going to get to a destination. It doesn't matter if this plane speed doubles up which means we get a double rate of return. We are still working towards a high headwind and it's not going to happen. We're not going to be working towards our financial goal. And this is a scenario of paying interest. So this is how I can well describe the scenario. People think they're actually making step forward, they're actually getting ahead in life financially, but they're actually just going in circles. Let's say we go back in the scenario. We're in Calgary so we haven't changed our cash flow. We still working with based on where we are financially. We haven't changed our destination. Our goal is still to get to Edmonton. But once we get into the air and we're heading towards a destination, we're still flying at 100mph but there is no headwind in this environment are we going to get to a destination? Absolutely yes. But at what speed? The speed at which we can save Money. So if this hundred miles per hour reduces to zero, then the whole plan changes again. Because it's all based on everything being perfect and we still able to work with no issues at all. We never experience job losses or economy changing going sideways or stock market committing a suicide. So this is possible, but only possible at the rate at which we can save money. I call this losing interest. Because once the money is spent, the money is gone. We cannot reuse that money again. It's not going to earn any interest for us again, not just over our lifetime, but for our next generations to come. Paying cash, you can still go up the financial ladder, but only at the speed at which you can save money. Scenario stays the same. We're still flying to Edmonton at 100 miles per hour. But now we have a financial tailwind because we are recapturing the interest now to recapture the interest. Meaning the interest is actually working in your favor. It's pushing you ahead financially. So now we are flying at 100mph and we recapture the interest which is 350mph. So our next speed to our financial destination Edmonton is 450 miles per hour. Are we going to get to our destination really quickly now? We haven't changed anything. Now what if life happens and we're not able to save money? Do we still have a financial tailwind pushing us ahead? That's the power of recapturing interest. So recapturing interest its importance in building wealth, using the process, becoming a banker. So think about this, an escalator. You don't have to move ahead, but the escalator will push you ahead. That's because you have a financial tailwind because the interest is not working in a favor versus against you. So have the interest on the things you finance work for you versus against you. Or in other words, become a banker and have the banking function work for you versus against you. It doesn't matter what your financial goals are. Rather than taking your cash and then saying goodbye to that money to buy whatever you want to buy. Just add one extra step to the process which is take your capital put into your banking system first and then use that system to buy the thing so that you're always working ahead financially because you have a financial tailwind pushing you ahead no matter what. So creating family banking system. Now any strategy that we want to implement it needs a financial tool. The tool that we use to implement this process is participating dividend paying, whole life insurance. Now the reason why we use this tool is because this tool has all the Required attributes for the purpose of recapturing interest. Remember, the objective you're looking to get accomplished is recapturing the interest. And this tool is the best tool to get the job done. Hence, we use it. Now, a participating dividend paying whole life insurance, it has few components. So let's talk about all those components. Now, one thing is premium. So it is a life insurance tool. And doesn't matter whether you have life insurance or any insurance products that you have today, are you paying a premium for it? Whether it's home insurance, car insurance, health insurance, in exchange for the benefit that the insurance company promises, you need to pay them. And that payment is called premium. So same thing with that. This policy, this product, this tool needs a premium. But I would encourage everybody to think about premium as a deposit. So premium is your deposit into your bank. And premium is not the problem. The premium is the solution to the problem. Premium is what you want it to be because you're building your banking system and what you put in is how you're going to build it. So if you today save 100 bucks a month in your bank for 12 months, you'll have $1200 at the end of the year. And Instead of saving 100 bucks per month, you save 200 bucks per month at the end of the year. Now you have $2,400. So it's simple logic. The more you put into the system, the more it's going to have for you that you can use from your system and capitalization. So the more you capitalize, the better it's going to become. And capitalization has to be very intentional because when we design these systems, we design it to achieve a very specific financial outcome. So premium is one component. The other component is death benefit. Because it is life insurance, it is going to have death benefit. And death benefit is what your loved one gets when you become an angel.

Now, death benefit is received tax free by the name beneficiary upon the death of life insured. We all have our best before dates, we just don't know what the date is. The third component is cash value. Cash value is your capital. So you put in premium, you have death benefit, and then you have another component called cash value. Now cash value is your capital. And this capital grows on daily basis. So every day it increases in value. And it increases in value because there's a contractual guarantee on this policy provided by the insurance company. And the contractual guarantee is that total cash value of the policy must equal the total death benefit. By age 100, the cash value grows Tax free. Cash value is not money, it is capital. The last thing is dividends. So when we have a policy like this, we just don't own the policy. We actually co own the insurance company. And do you know insurance company is actually business, not a charity. So dividends is your share of visible profit from the insurance company. It's based on your contribution principle. The more you contribute as premium, the more share of profit you will receive. And dividend, the way we structured it is also tax free. So that benefit is paid tax free. Cash value is tax free, dividend is tax free. When taxes go up, tax free becomes even more valuable. Policy is not designed to maximize dividends. That's a myth. The policy is actually designed to maximize your behavior because your behavior is more critical in this process than the insurance company's behavior. So you want to give the control to you, not to the insurance company. Now your money needs a warehouse. Money needs to sit somewhere. If you can warehouse your money in an entity where your capital can never reduce in value, where your capital grows on daily basis, where the financial turmoil in the marketplace doesn't negatively impact its growth, where all the growth is tax free, where the capital is readily available to access to capitalize on opportunities. How much of your money you don't want residing in an entity like that? So here's how we create a family bank. Family has an income or could be an individual. You have income after living expenses. Money should be going into your family bank first. And I say bank one, bank two, bank three, because usually I meet with families. So husband, wife, wife, husband, children. So we create a family banking system. So money goes into system as premium. And the premium does one thing and one thing alone, which is it buys death benefit policy. It's participating dividend paying whole life insurance premium buys death benefit. Death benefit creates cash value. And there's another component that shows up on the policy which is policy loan. Policy loan is basically 90% of cash value. This is what insurance company is willing to lend you against your cash value. And the cash values grow every day because cash value must grow every day to match the death benefit by age 100. So that when the cash value increases, what you can access as a policy loan also increases. So it grows every day. And the policy is also designed to increase the death benefit every year. So cash value is chasing the target. The target is death benefit. The more we grow the death benefit, the more we grow the cash value, the more we grow the policy loans. So it's a myth when people say I can design the Policy to maximize cash value. That doesn't exist. We can only design the policies to maximize the growth and death benefit. And because the death benefit grows, the cash value grows. Because by age 100, cash values must match the death benefit. So every day you wake up, cash values go up, stock market goes up, cash values go up, stock market goes down, cash value still go up, Crypto goes up, cash values go up, crypto goes down, cash values still go up, interest rates go up, cash value goes up, interest rates go down, cash values still go up. So, personal family bank. Now, I'm going to start with financing a car. The price tag was $35,000. So it was 2019 when I wanted it. Now I was proactively thinking ahead, because it's good to be proactive than to be reactive. So, March 2017, I was thinking ahead, and I said, okay, in two and a half years, I'm going to need a car. And I had financed cars up until that point by paying cash, by leasing or bank financing. And I know what the outcome is. I had the car, but the money was gone. But now I wanted to change it. I wanted to buy the cars going forward from my own banking system. So I just worked backwards. If I was going to buy a $35,000 car every seven years, plus build wealth for retirement, plus other opportunities, what should I be putting into policy to make that happen? And the number was 20,000 per year back when I started this policy. On day one, 2017, my cash value growth was already $12 a day. So every day that the cash value was increasing, $12. Now, how do I know that growth? Because it's my policy. I can look at my numbers today, I can look at my numbers very next day. The difference is the daily growth. And it's been growing every day since I started the policy. It's just in 2017, it was $12 per day. My starting debt, $680,000. Now, fast forward to 2019. Here's how much I had in the policy. My cash values at that time had increased to 48,635, growing every day at $20 per day. So it was $12 when I started it. In 2019, it was $20 per day. As of now, the daily growth is actually even higher than $20 per day because policy has matured since then. My death benefit increased to $750,000. I started at 680,000. It increased to 750 because the policy is designed to increase the death benefit every year. Capital required to buy the car was 35,000. So the cash value is 48,635. Policy loan available is 43,000. So policy loan is 90% of my cash value. This is what insurance company is willing to lend against my growing pool of capital. And my daily cash value growth is $20 per day. So these are my two methods to access money to buy a car. Now when I access a policy loan, there's no qualification, there is no income verification, there is no consent to even repayment terms. I just demand the money and the money shows up. What I can access as a loan is 90% of my cash value. That's the only thing I have to look for. Now if I need money to buy a car, I need $35,000. Should I withdraw that from my pool of capital or should I borrow it from the insurance company? Which pool of capital should I use? If I use my money, it's not going to grow $20 per day anymore. I will lose the compounding. But if I borrow it, it's not going to interrupt the compounding. But when you borrow money from anybody, is there interest charged on the loan? 100%. Same thing will happen here. Insurance company will charge interest. So I took a policy loan for $35,000. What insurance company did for me was they used my cash value as collateral and they put a lien on my death benefit for the amount that I borrowed as a loan. When I received that money, it was a private loan between me and the insurance company. So it doesn't even show up on credit report. It's private. So when I bought that car using insurance company's money, I technically paid cash for it. The lien is on my future debt self, not on the car. The car is on free and clear. The policy loan interest at that time was 7%. Now 7% of 35,000 is how much per day. So if you take 35,000 multiplied by 7% divided by 365, it's $6.70 a day. This is the interest charged by the insurance company per day. Now how much is my growth per day? $20. So how am I doing so far? When I borrowed the money, did I create a financial tailwind? Did I recapture the interest charged by the insurance company in the growth of my policy? If you just keep getting money out of the system via loans and you don't pay the money back, you are going to run out of money. So here's what you got to do. Be an honest banker. Put the money back on the shelf so that it's available again to reuse it. And here's what happened on my loan repayment with the car I paid it back on my terms. Insurance company did not dictate any terms to me. They didn't even ask me when I'm going to pay back the loan or what I need the money for. I look at my cash flow and I said okay, from my cash flow I can pay back 500 bucks a month. My monthly cash value growth was 600, so $20 multiplied by 30 days so my cash value kept growing. My monthly interest on the loan is 201 because it was $6.70 per day multiply by 30 is 201. So when I make this loan repayment, so 500 plus 600 minus 201 is 899. That's exactly how I fall. When I saw the transaction, I got super excited because I was repaying the loan back into growing pool of capital. So critical thinking, where can you pay back 500 bucks and create access to 899? So meet Corey, he's age 38 and he's a full time investor. He doesn't work, he just has cash independence, investment independent and he creates wealth through stock market investments and he gets really excited when he's able to get a rate of return of 20%. Corey, when he met with me, he read Nelson's book, he watched some videos and he told me, he said serblo, I like the long term benefits of the policy but I'm struggling to understand the short term benefits. Becoming a banker is not about policy. He was just looking at the table of values and he got excited looking at it from a long term perspective. But he missed the most important teaching point. The importance is recapture of the interest. So he was struggling with that and I said okay, I'm happy to provide you clarity. So I said let's compare because everything is comparable and when we compare things we can make a decision if one is better than the other. So I said what's your present method that you use for investing? And he says I have got two methods. One is I can use my own cash which is method one. And the second method is he says I can use heloc, which is OPM other people's money and HELOC is actually at a higher rate now it's more like seven and a quarter but let's assume it's 6%. So these are his two methods. I said okay, I'm going to compare these two methods with IBC Infinite Banking concept and let's see who comes out ahead and the Objective is to invest into 20% deals that he gets excited about. So I'm just using 20k as example. Let's assume that 20,000 is what he was using for investment. This is his method one, which is using his own cash. So he invests 20k into investment and he earns 20%. So the gain that he makes over the year is $4,000. The method two is using HELOC. So he borrows $20,000 from the bank, invests at 20%, still earns $4,000, but he has to pay the 6% interest to the bank which is 1,200. So his net gain is $2,800 in HELOC. So 4,000 in the first method, $2,800 in the second method. Now the third method is IBC. So I took my $20,000 and I capitalized my policy as premium. I first put my money into my policy. My starting death benefit was $400,000. So if I die, that's my family gets. Now if Corey has no life insurance and he dies, does his family get anything other than his investment? My immediate cash values on day one were $10,333. So I put 20k. This is the cash value available on day one. Daily cash value growth is $8 per day. So every day, just in the first year it was increasing by $8. It's it increases every year going forward, but just in the first year it was $8 a day. So what I did was I took a policy loan from the insurance company which is 90% of my cash value and it was $9,300. So I took that money and I invested into 20% and the insurance company interest on the policy loan was 6.2%. So I took policy loan of 9300, invested in 20%. My gross profit of 20% was 1860 using policy loan and the insurance paid to insurance company on the loan was 576. So my net gain in the investment was 1284. So let's now look at the bigger picture. So let's compare. Using cash, he made 4,000. Using HELOC, he made 2,800. Using policy, he made 1284 in the investment. But as he used insurance company's money to invest, what was happening to his own capital in the policy? The $8 per day was that still growing uninterrupted? So over 365 days, how much did his cash increase in the policy by 2920 and how much did he make in the investment? Probably for. So how much did he actually make overall 4,204. Using his cash was 4,000. Using HELOC was 2,800. Overall wealth that he built using policy was 4,204. So who came out ahead? Because when he uses cash, the money was gone. When he used heloc, he paid interest. When he used policy, he recaptured the interest and his cash value just kept growing. Now from a tax standpoint, if this was a non registered investment, did he pay tax on $4,000? Did he pay tax in 2800 using HELOC? No, he didn't pay tax on $4,200 because the cash value growth was tax free. He only paid tax on 1284. But he just didn't make more money. He also paid less taxes. And that's just getting started with the policy. This is day one and as time progresses, Corey will never catch it because it's going to come to a point where he's going to have access to more money in the policy than what he's putting in his premium. Here's another example. Male, age 45, starting death benefit was. So he started a policy. Now his objective, they wanted estate planning, tax planning going forward. So he wanted some death benefit. So his starting death benefit on whole life was323,050. But it wasn't enough to meet his need for insurance. So he bought some additional temporary term insurance for 10 years. And the death benefit on this term was the same as the whole life. So his total death benefit started at 646,600. His premium was 35,300. If you take the premium and you divide it into the starting death benefit, basically what it means is for every $100 of death benefit they were paying $5.45. Are you all familiar with deemed disposition rule in Canada? Everything that you have in terms of capital property is deemed to have been disposed at fair market value when you die. And when that happens, what does that trigger? A tax invoice from cra. Now does a cra, are they going to treat you any different than any other taxpayer? If you don't have the money to pay the bill, they don't care. They need the money and they need the money now. So if you don't have the money, liquid money to pay their bill, they're going to liquidate their assets. Your assets that you think are going to transfer the next generation, those assets will be liquidated and then will go to the next generation. So if you don't plan for it, and let's just say the bill is $100. Then you're going to pay that bill for $100 or dollar for $100 for $100. But if you plan for it using properly designed whole life policy, then that bill will be paid by only $5 because that's what is costing you. To buy $100 in death benefit is $5. So if you have a choice today to pay a tax bill, you know, pay that with $100 or $5, because that day will come. This is where death benefit is such an important tool because someone has to pay that bill. And if there's no cash there, then your estate is going to be broken before it's given to the next generation. Now this is just a very typical policy. So you can see the year ages, premium, dividend, cash value, death benefit. Now something happens at year three, they put 35,300 as premium. And the cash growth from year two to year three is 38,348. So they're 45 years young when they start a policy. In three years from today, they'll be 48. In three years from today, they'll still be flowing 35,300 to some financial institution. If they flow 35,300 through the bank checking account, they can only spend 35,300. But if they put that money into a policy 35,300, then they can spend 38,348. Which produces a better outcome, bank account or policy account? Because three years will go by no matter what. But the question is, do you want to be three years older with the policy or without the policy? Now you see between year five and six, the premium dropped from 35,000. It came down to 9,000. That's how we designed the policy. The minimum required premium on this was only 9,000. They could put up to 35,000 in the system. So we have flexibility built in. Now when they reduce the premium to $9,000, how much does the cash value increase from year five to year six? Tell me you're not going to find 9,000 to spend $17,000. And do you see the premium drop even more at 56, 11 years in? Because the term insurance, which was temporary, that dropped. Now they have permanent death benefit of 856,000. The death benefit started at about 323,000. Permanent whole life. So death benefit has increased, cash values have increased. And all the financing opportunities that the family had starting day one, they were able to still do all that. The dividend is 89, 36. At year 14. So if they wanted to stop putting premium in, they could have done it much sooner than this. But the best time to start putting premium in if they actually wanted to is in this case year 14. Because now the dividend could pay the premium all 100%. They don't have to pay any premium in. But that's just one way to look at it. The other way to look at it is if they actually put 8761 as premium, how much did the cash flow increase from year 14 to year 15? Is that about $16,000? Anybody objecting to put 8,000 to get 16? So creating a family bank needs understanding. Now it requires discipline to implement the idea, but it can certainly change your life dramatically, even beyond your fondness dreams. So family banking is a business and treated like a business because objective of any business is to be profitable. In this case, it's profit for you and your family. Set principles around it so that you can spend the time enjoying it versus spending the time managing it. And we'll coach you on that. So how do we get started? Well, the most important word that comes to our mind is desire. Without desire we cannot do anything. And everyone is already spending all financial resources on what they think is best. And there has to be some honest introspection at this time. And getting out of financial prison must be a burning passion. This may require change in priorities in life. And recognizing that controlling the banking function is the most important thing that you can do for yourself financially, for all the financial goals that you have. And as time goes by, here's what happens in economy. Economy goes down, stock market goes up, stock market goes down, real estate goes up, real estate goes down, interest rates go up, interest rates go down. So things keep happening in the economy. You know, there's one thing that continues no matter what is the function called banking that continues no matter what. And someone in your life needs to control it. And that someone should be.