THIS Is How To Keep ALL THE MONEY You Make

One thing continues, no matter what that thing is called, the function called banking. Someone has to control that banking function in your life, and it should be you, because it puts you in the strongest control position. And the best way to do it.

Is learning how to think. Long range is a skill. It's not a statement, it's a skill. And I've personally learned from Nelson to be thinking at least 70 years down the road. But the truth is, I won't be here and neither will you. And most people in North America can't think past this weekend. And so let's begin by clearly calibrating on the problem. All of your money is flowing through the books of someone else's bank right now. And you may not be aware of this, but if you take into account all of that money that flows onto the books of someone else's bank from all of the sources that you see here on the screen, plus many more, the moment that that money lands on the books of someone else's bank, it's not your money anymore. You just become an unsecured creditor of that bank. That money doesn't belong to you anymore. The bank's got to keep that money in constant motion. They can't let money sit still because money that isn't moving isn't worth anything. And the bank needs to keep that money flowing in the form of loans. If you were to consider all of your major expenses, think about the month, all the money that you spend and what you spend it on. If you think of that and you take into account the amount of money that you handle in a year, not the amount of money that you make. I ask people this question all the time. How much money do you make? Oh, I make 100,000 a year. I make 250,000 a year. I make 300,000 a year. No, you don't. You handle 100, 250, 300,000 a year. You don't make that amount of money. You've got money that's flowing through your hands, not into your hands. That's a problem because if you take into account how many more months you're going to go through all of life's major expenses, and then how many more months every future generation after you is going to go through life's major expenses. You can see rather quickly it becomes very evident and obvious that you are really getting hit with lost opportunity cost. Every dollar that flows through your hands and onto the books of someone else's bank amplifies lost opportunity cost in your life. Every time you swipe the debit card, you buy the food, you pay the utility bill, you pay the mortgage, you pay the car loan, you pay the credit card company. Everyone else is getting all your money. You pay the IRS or you pay the Canada Revenue Agency. What a complete idiotic name for a government agency. The Internal Revenue Service, the Canada Revenue Agency. And yet we just sit there and take it. It's a boiling frog syndrome. There's a way to secede yourself from the banking system as you realize and as you interact with it so, so that you can have money flowing into yours, your family, your business's hands, not flowing through. How are all of these things financed? You're either paying cash, you're leasing, you're borrowing, or you're swiping a credit card that covers just about 99% of the North American population. That's how you go about your financial affairs throughout the course of your lifetime. And then whatever you've got left over. The banks want to get their hands on it, Mutual fund companies want to get their hands on it. The government wants to get their hands on it. Someone or some other organization thinks that they can do better with it than you can. If you think about financing all of these things through the books of someone else's bank, you're doing all the work, everyone else is getting all the money. You all agree and have clarity that this is a problem. Nelson described in his book, for most of you who have read it, that there are four characters in the financial play. The depositor, the borrower, the banker.

And the bank owner. The fact is that the majority of you are only two of the four characters in the financial play. You're the depositor because you're depositing money onto the books of someone else's bank. With every financial transaction that you encounter in your lifetime, you're a depositor. Every bill that you pay, every loan repayment that you make is someone else's passive income. You're two of the four characters. But in order to become the banker and the bank owner, you've got to become your own banker. That's the only way to do it. And when you become all four characters in this financial play, throughout your lifetime, then you are not only going to have the money flowing into your hands and remaining within your control inside of an entity that you own. You call the shots, you have the gold, you make all the rules, but you're also going to be able to create that peaceful, stress free way of life financially so that you're actually controlling your wealth. Your wealth being your Relationships, your purpose, your financial objectives, all of those things that are so important to you, all of the people who, that are so important to you. And we're going to go through a pretty amazing questionnaire that I'm going to have you think about and we're going to have some good chat and bring people on who might want to share in just a short while because I want you to really process what the advantages of this concept can be for your life. In North America, the average family is paying that percentage of their gross household income in taxes. That's the truth. The more you make, the more they take. Now this guy just filed his tax return and he got his notice of assessment back from the government. So he's not a real happy camper. He doesn't work in our office though, but he's not a happy guy. This is today's public service announcement. What you want to do when you're accumulating capital and you're multiplying capital is you want to shield that capital from onerous taxation. If you think about this carefully, if the government creates a problem, too much tax and, and then turns around and grants you an exception to the problem that they created by giving you the opportunity to participate in a tax qualified plan like a 401k or an RSP or a tax free savings account, aren't you just a little bit suspicious that you're being manipulated? All of these products are created under the guise of giving you a tax break. If the government really wanted to give you a tax break, they would simply cut the taxes. Now it should be obvious to all of you that they have no interest in doing that. And if you were to look ahead into the future, it should also be obvious to you that the government's going to need more money, not less. Now the reason I share all of this is that it would be important to recognize not only that there are exemptions that exist in the tax code today and that dividend paying whole life insurance contracts are the greatest exemption that exists in both the Canadian and American tax codes. But the government's going to go looking for, for that more money in areas where you're already on their radar. You file a tax return every year, you're on the government's radar. Contribute to a 401k or an RSP, you're on the government's radar. You contribute to a tax free savings account, you're on the government's radar. Am I even remotely suggesting that you shouldn't do any of those things? Of course not. But all that I'm doing is bringing awareness to the fact that you're on their radar. And the fact is that wherever wealth resides, someone's going to try and steal it. It's not a matter of if, it's when. And so you can shield yourself from that, you're most at risk, especially if you're even the least bit effective at accumulating wealth. If you were to examine all of your existing assets and you just asked yourself which of those assets are a sitting duck for future tax hikes, you've got to address that. You've got to get together with the right person on my team, schedule a time, have a look at it together, and make sure that you're addressing it. You're taking proactive measures so that you can gradually and incrementally shield all of it from onerous taxation. And if you're in a position where you've created a legacy, you've created an estate plan. The worst thing for a beneficiary to inherit is a taxable one. A taxable inheritance is the worst thing to inherit. And if you've got taxable savings or assets, you've got a big problem. So do your beneficiaries. This one really stings. And I'm not talking about interest rates. I'm talking about volume. The volume of interest, the infinite banking concept has anything to do with interest rates. It's all a matter of where your money is flowing to, who your money is being put to work for, and for how long. And if you think of all the money up to this point in your lifetime that has flowed through not only your hands, but your family. Now, I want you to think about not just your immediate family under your roof. I want you to think of your entire family, your entire lineage. Think of all the money that's flowed through your family's hands up to this point. You may have guessed it right. It all ended up right back in someone else's bank. And if you're a business owner or an investor, the problem is amplified even further. Either you, your family, your company will ever see that money again. You earn income from a variety of sources. You're taxed. All the money flows to someone else's bank. And yet you repeat that cycle over and over and over again. Here's why you should stop this cycle. You should stop it because this means more money for your dreams. It means more security for your family. And the control. The control to truly enrich your life and the lives of others. Because at some point, you're going to be Compelled to create a time and schedule a meeting with the right advisor on my team. And don't bring any money to that meeting because they're not going to ask you for any. The process of having that discovery session is valuable because you get to explore those clarifying questions and the insights that come up for you on the implementation of this process. You get to look at real world examples. You get to watch how your own plan is engineered and put together to achieve a defined set of objectives. That's what you want to do, is meet with the right person on our team. So don't procrastinate. Take action while the knowledge is fresh. All right, now this is something that's an obvious yes and we've never had anybody say no. Actually, you know, I've quite enjoyed every experience that I've had dealing with someone else's bank when I needed ready access to money throughout the course of my lifetime. Well, we experienced that frustration as well. For me personally, I was just tired of feeling like just being another account number, just being lost in a sea of transactions and red tape. Pick up the phone and call your bank today and what you're going to feel like is a pinball. You're going to be bounced around all over their call center queue. And when you end up talking to somebody, it's not the person you should have been speaking to anyway. So you're going to get transferred another 48 times before you even get your simple question answered. You've got nosy and lengthy credit applications to borrow money on someone else's terms. So you're not in a position of control. I felt the very same way prior to July of 2008, when I was first introduced to this concept in April of 08. This was a few months before we were introduced to the concept. My wife Rebecca and I, we had purchased our first home and you could get 40 year amortization schedules on your mortgages back then. 40 years. So we thought, wow, this is incredible. We, we've got a mortgage for 426 plus thousand dollars. We've got a really low interest rate, right? Because that's what the bank wants you focused on. And isn't it interesting that the conventional banks make record profits in the lowest interest rate environments, but yet the common consumer thinks that hey, this is a great lot in life. If I get a low interest rate on a loan, the banks are raking in the profit because it's not about the rate, it's about the volume because the volume of borrowing goes up, which means the Volume of interest in dollars goes up. So for my wife Rebecca and I, we didn't know what we didn't know at the time. Active real estate investors had 13 properties, bought this principal residence, systematically transferring all that money away from us. And then when I was introduced to this concept, we began to implement it quite aggressively in our lives. And we got rid of the conventional bank 33 years ahead of schedule. We began to purchase dividend paying whole life insurance contracts. Now, these contracts are the tool to implement a process. And these contracts began accumulating cash value immediately. Now, cash value, most people don't know that cash value is not money. It is the present value of the future payment of a death benefit. That's what cash value is. But here are the advantages. That cash value is contractually guaranteed to grow daily. It cannot go backward, it cannot be repossessed. You pay no tax on that buildup. You've got a ever increasing death benefit thrown in for good measure. You pay no tax on that either. And you can borrow against that ever increasing cash value which is guaranteed to match the total death benefit by age 100 of the life insured in Canada and age 121 of the life insured in America. And so every day that you're aging, your cash value's rising. And every premium payment that you make, every dividend that you chunk back into the policy increases the death benefit. You can contribute almost unlimited sums of money, and it's a private contract and it's unilaterally binding, meaning the life insurance company itself is the only party to the contract that's required to make and fulfill legally binding promises, like a guarantee to increase your cash value daily, like a promise to pay a windfall, a death benefit when you die. And another really important promise, a guaranteed loan provision where you can request a policy loan at any time for any purpose. The loan is unstructured, meaning there's no repayment schedule and it's not reported to Transunion or to Equifax. So it doesn't interrupt your ability to access capital from other banks if you need it. It doesn't affect your debt servicing ratios and the formulas that the conventional banks use to determine whether or not you you're a good credit risk and whether or not you can access someone else's pile of money. So I want you to picture this. You can contribute unlimited sums of money. You're growing cash value on a daily basis. You've got ready access to real money, not cash value, by borrowing against the cash value without interrupting any of Its daily growth. You pay no tax. You repay a policy loan on your terms. When you purchase one of these contracts, you become a co owner of that life insurance company. Now, I'll bet you a dollar to a Krispy Kreme doughnut that nobody from your bank is calling you and saying, Excuse me, Mr. Smith, we just wanted to let you know that we've generated record profits this year and we really appreciate the fact that all of your money is flowed onto the books of our bank and we want to send you a dividend. Unless you were a stockholder of that bank. That phone call, never happening with the life insurance company. Different story. They must, when they have a divisible surplus called positive net income, they must distribute a portion of that net income to all of the participating policyholders in the form of a dividend and take the remainder and leave it on the books of the insurance company as policyholders equity. So who are the sole beneficiaries of 100% of that net income? The policy owner. How much of my money do I not want residing there? Because from that place I can control how I finance all the things I need. I can invest, if I choose to, in anything I choose to invest in. So all of my financial objectives go on uninterrupted. But the process of how I make those objectives achievable realities changes entirely and so do the odds. And when dividends are declared, which happens once a year, the dividend is contractually guaranteed to be paid. I say that again. Contractually guaranteed to be paid. And it cannot be repossessed or lose value ever. And you're not on the government's radar because it's a private, unilateral, binding contract. It's not an investment. My wife Rebecca and I got rid of the bank 33 years ahead of schedule. The first person I called was Nelson. I said, I think we solved the problem. We just got rid of the conventional bank today. And he said, hang on there, boy. He said, remind me again, how long was the original loan schedule? And I said, well, it was 40 years. He said, do you want to be an honest banker, son? I said, absolutely, yes, sir. He said, well, you've got to finish the original loan schedule. You're just going to change the process of who's getting the money. So he coached me in that moment. He said, you've got to continue making the payment. You're just changing the process of where the money's flowing to. Because remember, by getting rid of the bank 33 years ahead of schedule, we had a Pretty sizable policy loan balance that we had to repay. But who's in a position of controlling that financing function? Now If I went 3, 4, 5, 6 months without making a payment, nobody from the life insurance company is calling me. There's no lien on my home. The lien is on the death benefit of the insurance policies, not the property that we live in. That puts us in a position of total and absolute control. And if there's any volatility in cash flow, we still have a peaceful, stress free way of life financially because we're not losing a wink of sleep over it. And our total cash value is rising every single day that we are. And God forbid, if the unthinkable had happened to Rebecca or I, there would be no indebtedness left behind to the family. And their surviving family would never have a bad financial day for the rest of their lifetime. Now here are three basic facts. Your money must reside somewhere. 2. You finance everything that you buy. Even when you pay cash for things, you're making a financing decision. Three, someone has to perform the function of banking as it relates to your needs. There are no exceptions. Here are the steps that you should take. Because by doing that, you're going to empower yourself with financial independence. You're going to gain control over your economic future. You're going to unlock wealth creation that aligns with your personal values and goals. Here's what you need to do. You've got to be intentional about building a pool of capital inside of an entity that guarantees daily growth of cash value, ready access to money on demand, on your terms. And you're going to recapture the interest, the money that you're presently paying. You're going to protect your livelihood, everything that you've worked so hard for from being decimated at the highest levels of taxation. Build a pool of capital where dividend paying life insurance. Now most people simply don't understand how the tool works. And why don't people understand how it works? You'll never guess who's buying the most dividend paying whole life insurance contracts or on earth. Take a wild guess. Banks. And so if banks are the largest purchasers of these contracts and they regard dividend paying whole life insurance contracts as a Tier 1 asset on their balance sheet. They're either really stupid and enriching their stockholders or they know something that you and I don't, which one do you think it is? If you guessed they know something that you and I don't, that's the right answer. So let's mimic what the Banks do and we'll do. Okay, now look, here's the deal. If you want to build wealth, then you have got to reckon with a few things. Tax risk, market risk, liquidity risk. There are no exceptions. And dividend paying life insurance addresses all three of those risks. Because you've got ready access, capital on demand, on your terms, without triggering tax, without reducing the asset's value, you eliminate your market risk and you receive contractually guaranteed daily growth that I mentioned earlier, lifetime access to money. You crank up a new business where no business existed before. Dividends cannot be repossessed, they cannot lose value. Your cash value grows every day, can't go backward. You pay zero tax on the buildup, zero tax on the death benefit, zero tax on the dividends when you chunk them back in to buy more paid up additions. You in Canada, it's exempt from the passive investment income tax rules. And you can be positioned to never pay tax on the ever increasing, basically cash, actual cash that you can access throughout the course of your lifetime. Now would you sleep easier at night if you knew that your money was no longer subjected to these risks? Now here's what you need to do. And the reason you need to do it is because it's going to be a financial advantage for you, your family, your key employees, everyone that you have an insurable interest in. Text the word schedule and schedule a time to meet with the right person on my team. I promise you that it will be a valuable, very valuable use of your time. Most people when they get exposed to this concept, they're thinking, how can this work for me? That's where your brain is, right? Your brain is very focused on how can this process work for me, me, the individual. But very few are having the discussion around building the family banking system, which is what we've done and what we're now teaching all across North America. And it is taking off like wildfire. And when I say wildfire, I really mean that even if you already have a policy, maybe you've already taken a progressive step forward in this journey of infinite banking in your life. When you're thinking about growing your program and you're thinking about putting together your own family banking system, we want you to think about lifeeva and ascendant because this is what we're teaching. So what we do is once a year we get together as a family and we host our annual family banking meeting. Now what do we talk about at these meetings? Well, we spend some time in Nelson's book and we'll address a very particular topic that's meaningful to the family. At that time, we involve all of the kids. So, so our kids, including my nieces, nephews, et cetera, they all actively participate in the family banking system. In this family banking meeting, we recognize the kids. We recognize the kids for their active participation, accessing policy loans, repaying policy loans. We're launching next gen ibc. Next gen ibc. And my daughter Charlotte, who you see standing right next to me here, smiling ear to ear, but Charlotte is launching her own podcast named Carly's Coins. And we just finished all of the planning for the podcast yesterday evening. She has her first guests coming on next Friday. And so she is actively going to be coaching and teaching kids about the advantages of the infinite banking concept. These are all the spinoffs, the advantages of family banking. But what are we doing specifically with the family banking system? We're helping develop the skill set of not losing the money. And Joe Polish of Genius Network, and he said something at our last session, and he said, you know, wealth is not just about making money, it's about not losing it. And that's an entirely different skill set altogether. Well, this speaks perfectly to the process of becoming your own banker, the infinite banking concept, because everyone in the family was really good at losing money because they were making all the car payments, buying all the food, paying the utilities, paying all the loans, paying all the credit cards. They were systematically losing all of the family's money. But now the money's flowing into our hands, not through our hands. And I'll show you exactly what our family banking system is. Nelson said, this is meant to be a system of policies. This is not meant to be achieved through the device of a single policy. Nelson wanted people to know that this was meant to be achieved through the devices of a system. And if you want to know what our system is, let me show you. So when we began In July of 08, our first policy anniversary was in July of 2009. So in 2009, at our first policy anniversary, we had two policies in force. We now have 77. And there are 27 lives insured in our family banking system, including all the key people in all my companies, all of our kids, my nieces, my nephews, my sister, my assistant, and so on. Our annual premium in the first year was 16,800. This year it's 1,050,000. Total death benefit in 2009 was a half a million as of the end of Q1 of this year. So this number is much higher now. The total Death benefit was 40,801,000 and rising continually. Total cash value, which is not money was 4,250 at the end of 2009 and 3,799,000 at the end of Q1 of this year. And it's going up every day. Every single life insured wakes up tomorrow and the total cash value in those policies is larger than it was the day prior. Loans first policy loan was for a car seat for my firstborn son, Jackson. You can't get a policy loan for less than 500 bucks today, but back then you could. Today we have 1.6 million in policy loan balances. We lend capital not only within the family, but we do private lending. So we keep money in motion, we keep it circulating. We have 1,700,000 lot higher today. This was the figure at the end of Q1.1.7 million in loan amount available. So if a high caliber opportunity tracks me down, can I take advantage of it immediately? The answer's yes. Because to request a policy loan, all I have to do is log into my client access account and push request a loan.

That's it.

There's no lengthy nosy credit applications, there's no income verification, there's no fat cat banker asking me a bunch of questions about why I need the money. The insurance company is the administrator of our 77 policies, not the owner. The owner calls the shots, not the administrator. That's a peaceful, stress free way of life financially. Loan repayments. Here's the kicker. This is and should be the big aha moment for you. We've got 80,000amonth, every month, flowing into the family's money pool, not through our hands. How are we doing in terms of kicking the crap out of lost opportunity costs? Now the fact is that our family, our key people in our companies, our businesses themselves, they all need the use of money to finance things, to transact. We haven't recaptured 100% of it in the entire family. We still have a distance to go. But just take a second to think about all the money that's flowing through your family's hands and your business's hands. Not into, but through. You've got to change that because you're developing awareness of a process that puts you in a position of controlling that and changing the trajectory of your family permanently. And then God forbid, when the unthinkable happens and people die, which in our family that's happened. My father in law spent his career working as a police officer. 35 plus year career as a police officer. This gentleman that you see right here, he retired And I said, hey, Papa, I want to get you insured. I want to pay for it. So here's something to pay very close attention to. You don't have to be the life that is insured. Every person that you see in this picture, I own policies on. And so I sat down with Papa and I said, hey, papa, I want to get a policy on you. And he said, well, I don't think I'm insurable. I'm a type 2 diabetic. And I said, well, there's only one way to find out. Let's apply for it. I'll pay the premium. All control access to the cash value in the family banking system. And when that day comes, when you pass away, Nona will not have a bad financial day for the rest of her lifetime. And Nona's standing right next to Papa. She won't have a bad financial day for the rest of her lifetime. And you get to put a policy in place for all of your grandkids, paid up. And he said, wow, that sounds great to me. Like I don't have to come out of pocket a single penny. He said, no, all you have to do is shop at home for the things that you need financially. So don't go to someone else's bank when you need a new vehicle, new set of golf clubs. You need to plan travel with Nona. The list goes on and on. Come to the family's money pool and we will finance it. So we applied, got him approved. I purchased two policies immediately on his life. We anticipated, and so did the actuary at the life insurance company, that he was going to live a long time, otherwise they wouldn't have approved him. September of 2020. Five weeks earlier than September of 2020, Papa was diagnosed with cancer. And in September of 2020, he passed away. I met with him in hospice three days before his passing and reiterated because he was worried sick about Nona. He was worried, right? He was just thinking about everyone but himself. And I said, papa, everything's going to be fine. We're going to honor your legacy. Nona's going to be taken care of. And three days later, he passed. And we honored that legacy. And so what I want to share with all of you is that you can do this too. You've got to schedule a time, get connected with the right person on my team. I'm entering my 16th year in this journey and Nelson reminded me and so many others that this is not going to be achieved overnight. But you know what? The rest of your life is going to go by anyway. And so why not gradually and incrementally create a peaceful, stress free way of life? Because do you believe that less stress adds longevity to human life? It absolutely does. So knowing that you can do this too, schedule that time because it's going to make you feel great. That's why you want to do this.

Now I'm going to dive into some case studies. The two case studies that I picked are based on some of the most common things that comes up in client meetings. But I also want to emphasize that infinite banking has no limits. The process of becoming your banker. The reason why Nelson named it the infinite banking concept is because it's just limited to your imagination. It literally has no limits. All them showing two specific case studies. But it could be implemented in so many different scenarios. The process of becoming a banker would radically enhance anything that you are presently doing financially. That's what the process is all about. All right, so here's the outline of the case studies that I'm going to go over. So one case study is about how a family by changing the process of how they're paying for living expenses. The second case study is about debt elimination. Now I'm not talking about the traditional way of debt elimination. You know, clients don't come to us for the purpose of eliminating debt because if they want to eliminate debt, all they have to do is just increase their payments and the debts are going to be eliminated. The reason why they come to us is because they want a better financial way to achieve the desired outcome. The desired outcome being eliminating debt. Every decision that you make with the use of money is a financial decision, right? You either are paying interest to someone else when you're using someone else's money or you're giving up the interest that you could have earned when you pay cash for the things that you want to buy your cash right now. So use of cash, that's a method that you use to buy the things in use of cash. The financing decision that you're making is losing interest on that money. Because once you use, the cash is gone forever. Now when you use banks money to buy the things, you have to pay interest on it. So the financing decision is paying interest. The process of becoming a banker, the infinite banking concept is not about losing interest, it's not about paying interest, it's about recapturing interest. Because when you are operating financially in an environment which helps you recapture interest, you have a financial tailwind that's going to push you ahead financially no matter what. But if you are operating in an Environment where you are losing interest or paying interest, then you don't have a financial tailwind. In fact, you have a financial headwind when you which is pushing you back financially. So when you use your cash, which is the decision that you make of losing interest, and when you use your cash, who gets to keep your money? Well, it's someone else. You earn the money, you use the money to buy the things that you want to buy, but someone else is now going to keep your money. When you borrow money from the banks, the financing decision is paying interest. And when you do that, who gets all that money on the payments that you're making today for the things that you may be financing, like mortgages, cars, your credit, things like that, things that you finance while after your payments are done, someone else got your money, you earned the money, you made the payment, someone else got the money. Whereas with the process of becoming your banker, and here's the reason why you have to work in an environment where you're recapturing interest. Because when you work in an environment of recapturing interest, you earn the money. You get the job done of using the money for buying the goods and services for, but you and your family also gets to keep the money. People don't implement infinite banking for the purpose of implementing infinite banking. People implement infinite banking because they want to work in an environment of recapturing interest because it creates the favorable desired outcome of keeping money in the family so that you have more money to use in future retirement time, whatever it is that you envision using your money. So you did all the work to earn money, but there's only one method that allows you to keep all your money in the family. And that method is based on the recapture interest. That's why infinite banking works. So here's a case study. So the first case study is creating a stronger retirement by changing the process of how you're paying for living expenses. I have some here. Food, clothing, mortgage, rent, car payment, home and car insurance, property tax, utilities and cell phone bills, Christmas expenses, getting family together, buying Christmas gifts, traveling on Christmas day, Thanksgiving. So holiday expenses, basically family holidays, family vacation, you are setting aside for emergency expenses and then you're setting aside money in a bank. And when an emergency comes, you take all that money and then you take care of the emergency, but the money is gone. Right? So emergency expenses, charitable givings, you setting aside money to help the charities that you believe in. Here's education, weddings, down, payment for a home, coaching, investments, taxes. So these are some of the examples that you have to deliberately set money aside to make sure that the money is there to ensure that these things are taken care of. Now, the only way for you to do that is if you deliberately setting money aside in an account presently, maybe that's money that you sitting and storing in someone else's bank. But the only way to make sure that the money is there is by taking action and ensuring that you're setting that money aside, you making a deliberate action and then in that action is a payment into someone else's bank. In your mind's eye, you must be thinking you're actually saving money, but you're actually paying into someone's bank to make sure the money is available when these expenses come up so they can pay for those expenses. All right, so I just took some of these expenses and I'm just going to isolate, use these expenses as an example here. And then this particular family, you can see underneath all these expenses how much they are actually spending on it. So home and car insurance, 2500 a year. Property tax 5000 a year. Charity, 5000 a year. Christmas and Thanksgiving about 2500 a year. Family holidays, 5000. Investments $5000. So if you add up all these living expenses, it comes to about $25,000. This is what's flowing away from them presently on these expenses. They're saving money in a bank. And once the money is saved and when these expenses come up, they take those monies out of the bank, reduce that account and then they take that money and transfer the money away and that money is gone. They can never reuse that money again. Hence it's never going to work for them again. To create a better, stronger retirement using your cash, you're going to lose interest. Banks money pay interest. Infinite banking recapture interest. Let's just take some time and understand use of cash lose interest. Now, everybody, maybe you're familiar with the cost of loss opportunity, but I'm going to walk everybody through a very specific example and cost of loss opportunity and how it can negatively impact your future retirement or future access TO Capital. So GICs in Canada called guaranteed investment certificate CDs in the US call certificate of deposit. So I'm going to use these tools as examples. So let's say today you're able to put money into GICs and CDs. Now is it safe for me to to assume that these accounts today paying about 5%? I may be on the high end, it may be lower than that, but I'm just going to use 5% as example. Now if you're age 30 today. And let's say you save $1 inside one of these accounts and this account is earning you 5% by the time you reach age 65, because the power of compounding that $1 becomes $6. So you're age 30, you put in $1, is going to earn 5% every year. By the time you reach 865, that $1 is going to become $6 because of compounding. Now, let's put things in perspective. Let's rethink our thinking and let's see this from the reverse engineering standpoint also. So if you put $1 and it's only 5%, you have $6. Now, that also means if you spend $1 in cash today on anything, maybe a cup of coffee, doesn't matter what it is, and you're age 30 because that $1, when you use it for anything that's gone forever. What it also means is because the power of compounding once that $1 is spent, is gone forever, you're not going to earn any compound interest on that money ever again. You will have $6 less at age 65. So that's the reverse engineer on compounding and loss opportunity. So if you're age 30, you spend $1, presuming this dollar can earn 5% every year. By the time age 65 comes, you'll have $6 less. Now that's just $1. Think about all the cash that you're spending today on the things that you need. Multiply that by six. That's how much less you're going to have at age 65 if you don't change anything about that action today. If you're age 40 and you spend $1 in cash, by the time you reach age 65, you'll have $3.50 less to spend. If you're age 50, you spend $1 as cash. By the time you reach 65, you'll have $2.15 less. If you're age 60 and you spend $1 as cash, by the time you reach Age 65, you'll have $1.30 less. And that's just an example. Just to make a teaching point, how important is to fix this problem. The problem called cost of loss opportunity. And becoming a banker helps fixes this problem permanently. It's a permanent solution, not a temporary solution. So we're using examples of these living expenses and everything together is 25,000. Now I'm going to use that 25,000 and run it through the same example. So if you're age 30 and you spend 25,000 on living expenses. By the time you reach age 65, you'll have 143,000 less. You spend 25,000 in age 40 on the things that you need, your own cash, you'll have $87,000 less at age 65. You spend 25,000 in age 50. By the time you reach age 65 because of your decision of spending cash, that's your behavior. You'll have 53,000 less at age 65 if you spend 25,000 in 860. By the time reach 865, you have 32,000 less. Now you know your financials better than anybody else. So run your financials through this example and do the math. And if you see that as a problem, which I know you do, then we have a solution. A picture is worth a thousand words. This is what the cost of loss opportunity is creating for you in the future. You have a bucket with holes and it's full of water and water is leaking because of cost of loss opportunity. Now, if you weren't aware of future financial impacts based on things that we have shared today, we are here to share with you. It's not your fault because you didn't know about it. But we're also going to ensure that you understand that it is not your fault because you didn't know about it. But it is your problem to solve and you're the only one who can solve your problem. So if you haven't scheduled that call, go ahead, schedule the call and let's have a discussion on how the process of becoming a banker can help enhance anything that you do financially. Even in addition to putting you in a better, stronger retirement position. And there's a solution. And the solution is the process of becoming a banker. And the reason why it's going to help you put in a better, stronger financial position. Because you're not going to be working in an environment of losing interest or paying interest. You're going to work in an environment of recapturing interest which is going to create a financial tailwind going forward no matter what. This is another way to conceptually see how you are paying for your living expenses presently. So in the bottom it's zero line. It's zero dollar line. It's, it's age. So on the left hand side, I'm presuming this person is age 40 and the right hand side is age 65. So you have to save purposely with an intention to set money side for living expenses. You saving money in someone else's bank account by actually paying into that bank account. Payments in life are not going to end. You're already paying into someone else's bank account. Start paying into your banking system. So you save money by paying into someone else's bank account. And once you have enough money to use for living expenses, you're withdrawing that money and you're coming down to zero line again. And then you go back and you start saving money intentionally for very specific living expenses. And the only way you can save is by paying into someone else's account. And once you get to a certain point of account value, then you use that money to buy the goods and services. You're down to line zero again. And this process of saving by paying into someone else's account and using that money coming down to line zero continues no matter what. And this is the reason why all this money that you're setting aside, saving and using and saving and using for living expenses is not working for you in the future. Because it's not about the living expenses and what you're going to use the money for. It's the process that you're using to accomplish the objective which is flawed. And becoming a banker is a much better process to achieve the objective. Now I'm going to compare the traditional way, which I just went over, with becoming a banker way. So same scenario, age 40, you're age 40, and then you're going to go to 65. When you start putting money inside into your banking system, there's going to be accumulation of capital called cash value. And once you get to a certain point where you have enough money to use for living expenses, you're not going to withdraw the money and come down to line zero. What you're going to do is you're going to borrow against a growing pool of capital via policy loan. And if you borrow money as a loan, your pool of capital is still going to continue to grow no matter what. And to make sure that the money is available for the next time to accomplish the same objective, you're going to make a payment no different than how you making a payment into savings account. You're just going to make a payment by paying back the policy loan. And the moment you make a repayment by paying back the policy loan, you're not down to zero. You're actually way ahead than what you started at because you're not interrupting the growth of your capital. And now when you need more money to buy anything else from living expenses standpoint, you just borrow money again. And borrowing money from the policy, it's contractually guaranteed. There's no qualification, there's no income verification. You just demand the money. Money shows up. And as you access money for living expenses, your pool of capital still continues to grow uninterrupted. And then to ensure that you have the money available again for the next year's expenses, no different than how you've been paying into savings account to ensure the money is there every year, you just pay the loan back. You're doing the exact same thing. But the only thing that's different now is you change the process to do it. And then here's another example, you take another loan for another objective and the money continues to grow. And then to ensure that the money's available for the next objective, you just save by paying the loan back. And this is the delta that you're going to end up creating now. So you're going to be way ahead at retirement time. It's going to put you in a much better, stronger financial position for yourselves, your families, for your business. And all you did was you changed the process to make it happen. Because this process is a process of recapturing interest. Now here's a case study. So this person is age 46. The objective is to have stronger retirement. The objective is to keep the money in the family. That's the why. That's why we do what we do. We want to have money to spend in future, not run out of money. And we want to have money in the family so that when we graduate, when we leave this planet, when we become an angel, we can provide more additional wealth to the family. So these were the expenses. And we're going to gradually move these expenses through the policies. And I'm going to show you, just by changing where the money is sitting and just by using a different process to accomplish the objective, how they came in ahead financially, much better in future retirement time. Now who here believes in instant gratifications? Because in the era of instant coffee, instant tea, instant this instant, that anything worth considering takes time. There's no instant financial freedom. You have to work at it. You have to be disciplined about it. You need coaching on it, you need guidance on it. And that's where we coming from. You're going to need the use of money for rest of your time on planet Earth. And this process is going to be with you for rest of your time on planet Earth. Are you worth 70 cents? So if you take 77 cents an hour, multiply by 40 hour week, and let's assume we work for 48 weeks a year, there's about 52 weeks in a year. So 70 cents per hour multiplied by 40 hour workweek multiplied by 48 working weeks in a year, that equates to about 1479, $1,479. I'm going to round it off to $1,500 per year. Now here's a question. Will it bend or break your lifestyle if you set aside $1,500 per year for a better and stronger financial position? If you set aside $1,500 per year, 77 cents an hour for a bigger, better, stronger, risk free, tax free financial future. So we're going to use that $1,500 a year and strategically build a system of policy. All right, Participating dividend paying whole life insurance, some components, so there's premium. So in our case the premium payment, so we deposit money into the system via premium payment is going to be $1,500 per year. So premium is going to buy death benefit. It is life insurance. And death benefit grows tax free in this policy, death benefit is always paid out tax free. Also in Canada and in the US Cash values is the capital, as Jason walked us through, is your capital which the insurance company is on the hook to grow on a daily basis. The cash value grows tax free on daily basis. And then there's contractual guarantees. Inside a participating dividend paying whole life policy, the cash value must grow every day to match the death benefit by age 100 in Canada and by age 121 in the U.S. now when you have a participating dividend paying whole life insurance contract, you just don't own the insurance contract. You actually co own the insurance company using or via this contract. So when insurance companies profitable, which these companies have been profitable over 200 years combined, you know, in U.S. and about the same in Canada, these companies pay out dividends to the owners of the business and we co own the business and that is paid via dividends and dividend is the profit that we received based on our share from the money pool. The dividends are also tax free provided the dividends are structured provided properly. And we always structure the dividend properly to ensure that that dividend and any future dividend is always going to be tax free. So if you're becoming your own banker, you have a family income and then obviously, you know, we set aside money from living expenses. Technically everything after that should go into the policy itself. But if you truly want to practice the process of becoming a banker, you should be technically putting all the money inside the policy or system of policies. Now you have to work to get there. It doesn't happen overnight. So I'm just showing you a conceptual example of the contractual guarantees inside the policy. So typically when we meet with the family, this husband, wife, there's just children. So we end up creating a family banking system. There's multiple policies. So let's assume husband, wife, child. So we put the premiums in. Premium buys death benefit. It is life insurance policy. So once the premium is paid inside the policy, it buys death benefit. Death benefit creates cash value. The other thing that shows up in the policy is policy loans. And what you can access as a policy loan is 90% of your cash value. So based on insurance company contractual guarantee, which says cash value must match the total death benefit by age 100, age 121, the cash value is going to grow every day. And because the cash value increases every day, your access to capital via policy loan also increase it. So cash value grows every day to match the death benefit by age 100 oblique age 121. And then the way we structured the policy is every year in policy anniversary day, your death benefit is going to increase. Your death benefit is made a moving target. And because that benefit is increasing, it's going to proactively grow more and more cash value. So cash value is going to continue to accelerate even better going forward then. And as policy owner, when an opportunity strikes, you have full access to the capital. You can access capital. We had two methods. One is you can access your cash value. And the other thing that you can access, or the other way you can access money is we have policy loans. Policy loan is not your money. Policy loan is insurance company's money. Now who here believes in earning uninterrupted compounding? If you access your own capital, you're going to interrupt the compounding. If you access insurance companies capital, then you're not going to interrupt the compounding of your capital called cash value. So if you have a choice to access money, do you want to access your capital or do you want to access insurance companies capital? So which one would you access? All right, so let's structure the system. So premium. So there's two elements to the premium. One is the required premium which is going to be based on 77 cents an hour, which is $1,500 a year. The other portion of the premium is called deposit option. So in this particular case, if someone is putting in fifteen hundred dollars per year as required premium, on top of that required premium, insurance company allows additional deposit option of in this case 5,000 per year. And this has been designed exclusively to help them build a system that they can use to finance their living expenses. This is a custom design, so everybody's needs are customized when it comes to becoming your own Banker. So 1500 is the required premium, which the insurance company needs. 5000 is the optional premium, which is where they're going to park their money for living expenses. So total monies that they're going to put inside this policy is $6500 per per year, which is a combination of $1500 and the $5000. Now, the required premium. So if you think about the required premium, what it's doing is, is building that foundation, is making a foundation strong. Now, once that foundation is strong, then they can park extra monies at deposits on top of that. Because they have a strong foundation, they'll be able to save those extra moneys with no issue at all. But if they have a weak foundation, then they're not going to have that much of room or capability or capacity inside the policy to put that extra money in. So think about the Empire State Building. So this black section in the bottom, that's the foundation. And they needed a very strong foundation to put the extra stories on top of the Empire State Building. So the required premium is going to be that foundation. And then the $5,000 per year is going to be the deposit option that they're going to put in every year. And as they start to build the system, it's going to become stronger, better going forward for the future. So Again, just summarizing $1,500 per year required premium, and then they're going to pay $5,000 per year to build a system to recapture the living expenses. And then these were the living expenses, building the foundation. So let's start with the foundation. Let's stop at $1,500. Now they're 46. One thing that we can do inside a policy or system of policies today, we can backdate the policy by one year and kickstart it. So they're 46 today, they can start today. But they understand the value of catching up on the missed compounding. So we're going to back it, the policy for one year. So we're going to start at age 45. And I'm going to show you what happens if you just put the required premium in $1500 per year. That's just the basic foundation. That's not becoming your banker. That's just the basic foundation. The other way to think about is if you already are setting money aside for emergencies, for Things for life. Well, set that money aside as required premium so that as the system grows, you'll be able to tap into the system for your emergencies or in case death occurs. Because that fifteen hundred dollars that they're going to put into policy per year is going to buy a boatload of death benefit. So the orange line is the cash value. So as they continue to put fifteen hundred dollars per year, you can see the cash value is increasing and it's increasing. To match death benefit by age 100. I'm using Canadian policy designs in the U.S. i'll go to age 121 and the blue line is the death benefit. And you can see the death benefit increasing every year. And because the death benefit is increasing every year, the cash value will accelerate every year going forward because we keep adding more runs to the ladder. The end age 100 hasn't changed, but we just keep buying more and more death benefit. Hence insurance company has to grow cash values even quicker. So if we put $1,500 from age 45 all the way to the age 65, so 1500 multiplied by 21 years, that's 31,500 and cash values of 42,008, 29. So we are definitely getting more capital out than what we put in. And from now till then, in case emergency happens, things like that happen, they can tap into their system for that purpose. Rather than putting that money aside in a bank, they just redirected that money inside the policy to have the money sit inside the policy. And obviously they also had some additional death benefit that got created. Now this is not their only policy. This is one of the policy that they started exclusively to fund finance living expenses. They have additional policies. This is only one of the many policies that they have. So this is not the only death benefit. This is death benefit in addition to other death benefit that they have in other policies. All right, now let's start moving these monies inside the policy. We created the foundation using fifteen hundred dollars per year, 77 cents per hour. And now we're going to start moving these monies inside the policy and then we'll start using the policy to finance living expenses. All right, and here's how we're going to start. So we're going to. So there's six expenses that we're going to move in the policies and six expenses that we're going to build the system to finance every year going forward. Now we backdated the policy by one year. So we put 1500 for last year as required premium 1500 for this year as required premium. Because we started the policy last year, we can put $5,000 off the property tax as the deposit option for last year. So instead of saving that money in a bank, they just saved that money as deposit option. And that went in for last year. And then the charitable giving that they're setting money aside, which is another $5,000, they're going to take that money and put it in for this year. So, so, 1500 for last year, minimum premium. 1500 for this year, minimum premium. 5000 for last year for deposit option. 5000 for this year for deposit option. So we got both of those monies in immediately because when we backed it, the policy for one year, we get to put two years of total premium in immediately. So 6,500 for last year, 6,500 for this year. So again, they haven't changed the cash flow, they just change where the money's sitting for now. And because they put money as premium, obviously the death benefit increased significantly. Because death benefit increased significantly, now they have more cash value accumulation now that they're going to have bigger dividends also going forward. So let's see what happened. Property taxes, they were saving this money in the bank. They put that into the policy. Charitable giving, 5,000 total of 10,000 went into the policy. Now they need these monies back right away because they pay property tax every year, they contribute to charities every year. So immediately, because now we are in year two, because we backed the policy by year one, we put last year's premiums in and we put this year's premiums in. So we are in year two right now. So immediately, their cash values are $12,004. The policy loan available is 90% of cash value. So 90% of cash value is 12,000. Multiplied by 90%, that's 10,800. So if they need $10,000 to pay for property tax and charity or charitable givings, they have all that money now inside the policy, and they're going to access that money via policy loan. So they need $10,000 to pay for both these things. They can access 10,800. So they're going to initiate a policy loan of $10,000. Now, when you initiate a policy loan, remember, policy loan is not your money. Policy loan is insurance company's money. Insurance company is a business, and the objective of any business is to create profit. So when they give you money as a loan, they're going to charge interest on that money, because if they don't, then they're not fulfilling their contractual guarantees to Us as policy owners who also co own the business creating all this profit for us. So if they can deploy this capital somewhere else and own a profit for us, why should they give this money for us for free? So they're going to charge interest in this money and the interest presently is 6.5%. So this particular client, because they want to take back $10,000 for living expenses, they took a policy loan for $10,000 and let's just say that interest was outstanding for one year because they were paying back the money over the year to ensure the money is available for next year because they're going to need property tax payment and charitable giving for next year. So they repaid the loan back, which is 10,650. The 650 is the interest paid to the insurance company because they took out $10,000. 10,000 multiplied by 6.5% is 650. So what they repaid is 10,006, 50. From year two to year three to make sure the money is available year three to redo the same transaction again, they paid back 10,006, 50. Now you can see the cash values at year three are now $13,958. It's right here in the bottom. They paid back $10,650, but now they can re access $13,958. So all the interest paid on the loan was recaptured inside the growth of the policy. So loan repaid $10,650 from year two to year three and they have access to $13,958. Would you call that a progress? See, they were going to save that money anyways in the bank. If they saved that $10,000 in the bank and they use that money for property tax and charity, the objective would have been accomplished. But all that account balances now got down to zero. And then to make sure that money was available next year to do the exact same thing, they would have intentionally repaid the money back inside the bank and saved back to $10,000. But all they can access the conventional way is another $10,000 again, whereas with the policy they repaid back 10,650. 6, 50 being the interest. But now they can re access $13,000 because they're working in an environment which helps them recapture the interest. Because when they initiated a policy loan, none of the cash values ever got interrupted. It all kept growing and the growth in the cash value far exceeded the interest that they paying on the policy loan. Hence they recapture the interest. So if you work in an environment of Recapturing interest, then you have a net financial tailwind. But if you're working in an environment of losing interest, then all you can use is the money that you put in. And that's about it. Now, after this is all done, let's see, what else do they have? So the extra capital deposit in the policy was $10,000 for property taxes and for charitable giving. So it was $5,000 each at 865. The cash flow is now 70,000. 7, 39. It was $42,000 at 865. If all they were doing is putting $1500 per year, the 70 cents per hour, if all they were doing was putting in the foundation, because they put additional $10,000 in, you can see it increased the access to capital at 65 to 70,000. 7, 39. So the net increase of money just by putting this $10,000, which is a difference between these two, is 28,739. So they had the use of $10,000, and they have the use every year going forward to do the exact same thing that they wanted to do. But now they created 2.8 times more money in the future for retirement. But if they were doing everything that they wanted to do the conventional way with the commercial bank, all they would have had was use of 10,000. All that money would have been gone and none of that money would have shown up for them for future retirement. So just by changing the process, they're creating better, stronger future retirement for themselves. And obviously don't forget the death benefit, because in case, God forbid, something happens, as they're banking, there's going to be boatload of now increase death benefit that's going to show for the family because money is going in, this premium, increases the death benefit, increases the cash value, increases the dividends going forward. So this family spends $5,000 per year on vacation. So we're going to add that now to the policy. We got the property tax in, we got the charitable giving in. Now we're going to move the Family holiday of $5,000 Total of $15,000 of those living expenses. And now in the policy. Now cash value at year three is now 18,830 because money is going in as premium boosts the cash value. So now they put 15,000 in, they got 18,000 8, 30. 90% is what they can access as a policy loan because they're only accessing policy loans. They do not want to interrupt the future growth of their wealth. And 90% of 18,830 is 16,947, all they need is $15,000 to ensure that this year they can pay the property tax, this year they can do the charitable giving, this year they can take their family for vocation. So all they need is $15,000. There's more than enough money for them to finance $15,000 of these expenses. And they do that by taking a policy loan. Policy loan interest is 6.5%. And then they're going to repay the loan back no different than before. So they're going to pay back the $15,000 that they borrowed plus the interest. The interest is $975,000 and they paid it back over the year. So from year three to year four, they paid back the loan. And the moment they paid back all the loan at year four, they have $20,947. So they paid back $15,975, but they can access $20,947. So now they're creating access to more and more capital. And the reason why that is happening is because they never interrupted the growth of their capital. Their capital called cash values, continued growing inside the system. Again, they repaid 15,975 and have access to 20,947. 975 was the interest on the policy loan, 15,000 in principal. They can re access all of the money again that they repaid as a loan, including the interest that they paid to the insurance company. And by paying the interest of the business that they co own, in this case the insurance company, they're making their own business much more stronger, which means more profits for everybody who's participating. So the more of us practice the process of becoming a banker, the more financial energy of interest we redirect back into our system that we call on, the better we all become financially going forward. Here's what else they created for them for future retirement. They put the extra $15,000 as deposits into the policy for the three living expenses and they recycle all that money out again. But by putting that $15,000, because again money went in as premium. And the moment money goes as premium, it'll buy more death benefit, which will create more cash value growth and it'll also give them more dividends. That extra 15,000 now at age 65, created 83,589 in terms of access to capital. If they were just doing the basic foundation $1500 per year, it was 42,000. But moving 2 of those living expenses, it was $70,000. By moving 3 of living expenses now at 865 is 83,589. So the net growth of capital retirement just by moving $15,000 is the 83,589, minus the 42,000, which is 41,589. So by parking 15,000 in, they created not just the use of the 15,000, they can recycle that money for living expenses, but they also created 41,000 in future retirement, which is about almost three times more than what they put in. And all that is tax free. Again, they're going to do this anyways. They're going to recycle this 15,000 from a traditional bank anyways. But none of the 15,000 is creating anything better for them in the future just by doing it through the process. They haven't changed the objective, but they created additional benefits for them and the family going forward. And again, not to forget about the death benefit. All right, let's move number four, which is coaching and investments. So we move property tax, charitable giving, family holiday, coaching and Investment. Total of $20,000. Cash flow is at year four. $25,798. 90% of cash value. This is how much they can take out as a policy loan, $23,218. They only need $20,000 to pay for these expenses. So they take out a policy loan at 6.5%, pay for the expenses, and then they pay back the policy loan. So the money is available next year to do the exact same thing. The loan repaid is $21,300, and the cash access when the loan is repaid is now $28,460. So pay back 21,300. Access to 28,460, pay back 21,300, access to 28,460. And what else did they create? So at 865, 42,000 was a cash value with just basic $1,500 per year. 70,000 was the cash value by moving two of these expenses. 83,000 was the cash value by Moving three expenses into the policy. 95,000 is a cash value by moving four expenses inside the policy. And they put $20,000 more. And then this is the extra cash value they created in retirement time. So the difference between 42,000, which was based on just the minimum, and 95,000, which is based on putting the 20k in the difference is 53,729 in extra cash values at 865. So just by storing the money and recycling the money through the policy, they created additional 53,000 in the future. Let's just say that's another three times more. All right, let's move number five and number six. So now all those six expenses have been moved into policy. So cash value is at year five at 33,323. All those expenses amount to $25,000. 90% of cash value is 33,323, which means they can access 29,000 as policy loan. They only need $25,000. So they access the policy loan insurance company's money. While the money continues to grow, they're going to repay the loan back with interest to ensure that they have the money again next year to pay for these expenses. So they're going to repay 26,625 and the cash value at the end of year six is 36,577. So they repay 26,000 and have access to 36,000. Now, by moving that 25,000 in the policy, the cash value is now at 865,000 or $107,000. So it's not that they have high access to capital today to do the things that they want to do. By recycling money to the policy, they also are creating bigger, stronger retirement in the future and the difference between 107,249 to 42,000. So this was just if they just did the bare minimum $1500. This is if they moved all that money inside the policy. So the difference is 65,249. So $25,000 of redirecting that money created 65,000 in the future. So by taking control over 25,000 in living expenses, it resulted in extra 65,000 retirement. Now, did they change the objective of paying for living expenses? The objective was to pay for all those six living expenses. They didn't change their objective. Did they take on any additional risk with the new process to accomplish the objective? They did not. Did they accomplish their objective of using the infinite banking concept? A hundred percent. They'd accomplished the objective via infinite banking, created additional financial wealth for them. 100%. But if they did it the conventional way, using the traditional banks, this never would have happened. Now, are they also working towards being more retirement ready now as compared to how they were doing 100%? By taking control over 25,000 of living expenses resulted in extra 65,000 in retirement. For every $1, they created additional $2.50 in retirement tax free, risk free at retirement time. Now how many of your dollars that you're spending on living expenses creating additional $2.50 at retirement time. Now, here's a question. Do you want to change that? Do you want to change the outcome? If the answer is yes, all you got to do is text the word schedule. And here's the reason why you should schedule your call, because it'll give you clarity on how this can be customized towards your objectives. Infinite banking is not just for the rich. Infinite banking is all about prioritizing the flow of money. And it has nothing to do with how much money you have and how much money you make. You're going to use the money anyways, just recycle that money like a banker. You don't need a lot of money to start becoming your own banker, but you do need to start becoming a banker so that you can keep a lot of your money in your families going forward for yourselves, for retirements, for your kids, for your legacy. Whatever your goal is, that's why you need to start it. So debt elimination, again, is not the conventional way of doing things. People don't come to us for conventional ways. They come to us because conventional ways don't work anymore. They want better, smarter ways. We call it the debt recapture because the value is not in eliminating the debt. The value is in eliminating the debt and taking control over the payments that you were sending over to the banks. Because you're the banker now there's value in being the banker. So the case study, so it's a debt elimination case study. If you have $12,000 in debt and it's a 0% interest rate, and your monthly payment is thousand dollars a month, may I ask how many months will it take for you to eliminate this debt? The answer is 12 months. One full year. Now let's fast forward 12 months. If they did exactly what I just described, 12 months from today, was the objective of paying off debt accomplished? The answer is yes, it was accomplished. Now, how much net worth was built over this next 12 months? When they had $12,000 in debt to begin with, they kept paying $1,000 a month into it. And 12 months from today, the debt was eliminated. None. Zero. Nada. How much of the cash? $2,000 per month that they used to pay down the debt? How much of the cash is now working for them and their family? Zero. So again, it's not about changing goals, changing cash flow, changing objectives. It's about changing the process to get to the objectives. This is the conventional way of doing it. Now, the real reason why Americans and Canadians have less money at retirement time isn't because they spend so much money so Much of their money paying off their debts, the mortgages, the car payments, the lines of credit, the credit cards. It's not just so much about they're spending all this money paying off the debt. The real problem is the real reason why they have less money retirement time is because they using the wrong process to pay off the debt. They're using the conventional process of paying off debt and they're not building any additional net worth. That's the problem. Becoming your banker fixes it. Your current process of eliminating debt involves you transferring your money away from you permanently. So again, if you use your cash to pay off debt, someone else gets your money. Use your banks paying interest, someone else gets their money. But if you use the infinite banking concept because it's a process of recapturing interest, and if you use this process to eliminate debt, then you and your family keeps the money in the family and you'll have more of it to use in the future. So the biggest problem in eroding your financial future net worth is the fact that you're operating in the wrong environment. This environment, you're doing all the work to earn money and everybody else is getting your money. That's the problem. So this is a case husband and wife scenario. So husband, his name is Glenn, he's 48 years young, he's in IT sales, makes about $160,000 per year in income. His wife, her name is Sheila, she's 45 years young. She works in a banking environment with commercial banks. Her income is $120,000 per year. Now, in addition to the income, she also gets to $20,000 per year in bonus. And that bonus, that extra bonus is what they're using to achieve their objective of eliminating debt faster. So they already have a lot of debt and you're going to see that. And they're taking that bonus to basically accelerate their debt pay down. So here's some of the debts that they have. Mortgage balance $650,000. Payment is 4,000amonth. Fair market value of the property is a million bucks. A line of credit is $50,000. Interest is 10%. Payment is 420 per month, which is just interest only payment for now. Glenn has a car balance of $50,000. Interest is 4.5%. Payment is 700 bucks a month. He's got seven years to pay. Sheila has a car, she's got a balance of 10% on the car. 0% is the interest rate, and her payment is 500 bucks per month. And she's got 1.6 years to go. And they have some credit card debt. They just did some recent renovation. The property had put about $10,000 in credit card. Obviously it's the highest interest rate at 21%. And they're just making a minimum payment. In fact, they were sending more money. So from her bonuses, the $20,000, she was taking those bonuses, putting it into different debts to pay it down, to accelerate it. But after coming to the process, becoming a banker, what we first thing is we do is we, we readjust what they already are doing presently, we add some efficiency to what they're doing presently, and then take action on the process of becoming a banker. One of the things we do is we give the bank the least of the money. We give the bank only what they need. We don't give them more than what they need. So I'm going to remove the mortgage because mortgage is an elephant. And the best way to eat an elephant is one bite at a time. So I want to isolate it. I want to focus on the other debts, the lines of credit, Glenn's car, Sheila's car, and the credit card. Now. So if I add up all those debts, if I add all these numbers that you see on your screen, the balance is $120,000 and the total payment is 17.95amonth that they are sending on those debts per month. Who owns the debt? Is it the family or the banker? Or if you guess the banker, you're right. Who controls the debt? Owning is one thing. Who's controlling the debt is the family or the banker. Now who gets to reuse all the debt payments when the debt payments are paid is the family or the banker. Who is doing all the work to pay down the debt? Is that the family or the banker? On whose balance sheet are debt payments assets? The family or the banker? Now who comes out ahead financially on those transactions? Now, the banker always wins. Your debt payments are someone else's passive income. So this is a scenario. Someone has a mortgage payment, they have a car payment, they pay for appliances, house remodel, they have furniture loans, they pay for credit cards, family vacation investments. So they have these pools of money beginning of the month and by the end of the month, because they're making all these payments, all those monies go to the commercial bank, transferred away from the family forever. And all we are teaching you today is change the role, become your own banker so they can do the exact same thing that you want to do, but keep the money in the family. That's all we're looking at accomplishing here. And the best kind of banker that you can become is become your own banker using the infinite banking concept. So here's a question for you. Now, if these are the debts, so lines of credit, car one car to credit card debt, and you can see the interest rates, you can see the payment. If you were working towards eliminating these debts, which of this debt would you pay off first? Which one would you focus on? Would you prioritize the debt with the highest interest rate or would you prioritize the debt with the highest payment? Or will you prioritize the debt with the least amortization? Which of these debts will you prioritize? First things first, as I mentioned, is we add efficiency to what we're doing. So the correct answer is we're going to start with the debt number C, which is the car 2, and then focus on debt number D, which is the credit card, and then focus on the debt number B, which is the car one, and then focus on debt number A, which is the line of credit. The line of credit is going to be the last of the debts that we're going to focus on. We're going to start with number C and then we're going to work in this order. Now how did I come up with this tactical order? Well, we use formula. And this formula helps us create a snowball effect and in terms of eliminating the debt. And the formula is simple, it's called the cash flow index. And the way you calculate cash flow index is you take your loan balance and you divide it by the minimum payment. And when you do that is going to give you a number and that number is called cash flow index. And based on where that number ends up on this range, that's the priority that we're going to set. So if the cash flow index is less than 50, that debt is a decent efficient debt as compared to the cash flow index for debt which falls between 50 and 100, any cash flow actually the one that falls less than 50 is in the danger zone. And this is the least effective. And we want to tackle that debt first. The ones that fall in the zone above hundreds of the cash flow index number is above 100, and that's the debt which is the most efficient. You're in the happy zone and that's the debt we're going to tackle the last. So this is how we make a decision on which debt we want to tackle first. So you can see the cash flow index numbers based on the loan balance and payment is right here. And hence we want to start with the car loan because it has the least cash flow index number, which means it's the least efficient debt, and then work away towards all the debts gradually. And this is how we create the snowball effect which helps eliminate debt in the quickest time period. Using this logic. Now, Sheila's annual bonus is $20,000. And that's what they've been using to accelerate the debt pay down. So that is basically the source of premium. So that's where we're going to get started. So 20,000 becomes the goes into the family bank as premium. Now, presently, Glenn already has $1.5 million in life insurance, although it is term life insurance. But good thing is he has life insurance for now. So we're going to take that $20,000 and we're going to do a policy on Sheila because Sheila presently has no life insurance. And as we work towards debt elimination, will gradually add some policies also in Glenn. But right now we wanted to just fix insurance on Sheila. So we took $20,000 per year and that's the premium. Now, this $20,000 has everything built in. The minimum required premium and the deposit option. It's all built into this $20,000. Based on the last example. Now, the minimum required, as you can see, is 4,819. So 4,819 minus 20,000, that's the deposit option in the policy. Starting death benefit is $400,000. Obviously, the death benefit is going to increase every year. Cash values grow every day, and that everyday growth accelerates every year going forward and so does the dividend. Now, total debt without mortgage, the balance is $120,000. Now, obviously, just like the last case, we're going to take advantage of backdating the policy. So we backed the policy by 364 days. So we deposit as premium payment $40,000 immediately on day one. So we put 20 for last year, 20 for this year. Their cash values right away are 30,000 8, 17. On day one, the policy loan available is 90% of cash value, which is 27,000 7, 35. And the cash value is growing every day, $10 per day, because the cash value must grow every day to match the death benefit by age 100. Now we're going to initiate policy loans right away to start eliminating the debt. And policy loan interest rate at that time was 6.25%. So if I take 27,735, which is the policy loan, and multiplied by 6.25%, which is the annual interest, and divide that number by 365, because the interest on Policy loan is charged and calculated on a daily basis. So the daily interest on the policy loan will be $4.74 and the daily growth in the policy is $10 per day. So you can see they already are recapturing the interest charged by the insurance company inside the growth of the policy. So they have a net financial tailwind of almost $6. Because if you work in a recapture interest environment, you have a tailwind. You use this money, insurance company's money, eliminate debt, your debt goes down, but your wealth called cash value still goes up. Now interest, recapture, financial tailwind. So daily growth is $10 interest and policy loan is $4.74 per day. Now here's a question for you. Will you have any issue paying $4.74 in interest to have $10 per day in tax free risk free cash value growth every single day and it's just going to become better going forward. Will you have any issues doing that? The first thing first is you can see the month and the year. So started April 23, April 20, 20, 23, these are the months. The premium is $40,000. So when they put $40,000 into policy, 20K for last year, 20K for this year, immediately they have a policy loan available of $27,000. You can see that right there. There's a separate segregated account. And I'll come back to what this account is. And then on the right hand side you can see all the debt types. So the car to the credit card, the car 1 and line of credit. And this is the sequence is based on the cash flow index number. So you're going to start by paying off car 2 and then work our way towards paying off the line of credit. And then you can see the balances on all these debts right here, the interest payments and the monthly payment that they are making towards these debts. So they put in $40,000, 20k for last year, 20k for this year. Immediately they have access to 27,735. So they take all that money, 27,735 off insurance company's money. Now because they're using insurance companies money, their capital called cash value is continuously growing inside the policy. So they took insurance companies money and then they eliminated the two debts right away because they can access 27,735. Car two is $10,000, credit card is $10,000. So they're able to pay off both these debts right away. And the balance which is the difference between 20k and 27,007, 35, that got applied to car one. And then you can see there's a reduction in the loan balance on car one when they eliminated the first two debts. So these payments, which they were sending away to the creditor for car two and credit card, while the credit card company and the car loan company doesn't need these payments anymore. So when you add these together, it's 675. Now they're going to redirect those monies into the segregated account. They're already paying the creditor. They're just going to start saving that money in a segregated account. Now they continue make the payments towards the car loan. So the payment on the car loan, 700 bucks per month, that hasn't changed. So you can see gradually, by organically paying the 70 bucks per month, they're reducing the car loan balance on the credit card. They're just serving the interest. So $420 per month, that's all they're serving. And then hence, you can see the balance on the line of credit is not reducing because they're just serving the interest on the line of credit. They have 675 coming back every month. And then just by virtue of setting aside and being disciplined and conquering Parkinson's law. So they conquered Parkinson's law, they're not spending this newfound money, they're setting this money aside into the segregated account. And just by virtue of being disciplined about it, by the end of the year, this is how much they have set aside in that account. Now next year, April 2024, they pay the premium of $20,000. And they immediately have access to 17,385 right away on day one. And they took this policy loan, they added it towards the $8100. Now the total that they can access is 85,000, 25,004. 85. They took that money and immediately they reduced the balance on the car, which was 34,000. Right. A month prior, when they put this 25,000 in the balance reduced to 8,411. And then they continue to make the car payment because the car company cannot give them a vacation on the payment because they're not the banker on the car payment. So they continue making those $700 per month in payment. And you can see organically the balance is going down and the process of recapturing money continues. So the first two debts which were paid off, they were setting aside 675 per month. They're doing the exact same thing. Now, if you fast forward to month 20, just by virtue of them setting aside those monies in the segregated account. They have $4,725 already saved now organically, because they've been paying down the car loan 700 bucks per month. By the time they reach month 20, there's more than enough money inside the segregated account to pay off this car loan balance. So now all the car loan balance has been repaid. While they could access 4725, this balance is 35 29. The extra money they just put on that line of credit which is the last debt and that Debt reduced to 48,804 which, which changed their monthly interest payment. So they, they actually have more money now because initially they were making interest payment on $50,000. Now they're making interest payment on $48,000. So they have more cash flow, which I'm not even accounting for. So now they have three payments, the 500 bucks, the 175 plus the $700. And now they're recapturing all those monies in this separate segregated account. And you can see accumulation is happening right here. Now, April 25th, next year, 24 months in, they're going to put 20k into policy. This is how much they'll be able to access right away. And they access that $19,000 and they add the 6,875 which they have saved in the segregated account. Now they have 26,140 to use and then they take that money and then they lump sum that on the line of credit. So you can see the balance from 48,000 came down to $22,000. So they continue with recapturing money and they continue with setting aside money in the segregated funds from all the three, that's that they have recaptured. And if you Fast forward to month 36, April 2026, now they put in the next premium of $20,000. This is how much they have access to policy loan. They have recaptured $19,000. We add these together, that's 38,976. That's more than enough money to actually eliminate the full line of credit completely. And all these payments which they were sending away to the creditors, the creditors don't need that money anymore. So now all those payments going to be redirected back into the banking system because the debt is now controlled by them. Hence they're going to get all the payments. Now whosoever owns the debt gets the payment. So the bankers, so called the snakes and dragons eliminated in 36 months $120,000 of debt gone. The only thing that they have is the mortgage. That's what they'll work on going forward. Now, if they stop now, if they just stop by eliminating the debt, they're going to miss on the biggest opportunity that they have, which is controlled by them, is their behavior. They'll miss on the most important step in wealth creation and having more access to capital at retirement if they don't pay back the policy loans. So here's what they're going to do. Now they have all the money that they were sending away to those creditors. Creditors are paid off now going to take that money and they're going to replenish the pool of capital in their banking system by recapturing that money because the debt is in their system now. Now here's the reason why they're going to recapture. If you only take money out of your banking system and you don't replenish it, you're definitely going to run out of money. And that's going to be caused by your behavior, not someone else's behavior. Do you know how much money do you think you're going to need over your remaining lifetime? I don't know what the money is. I don't know. How much money do you need? I don't know. What I know for sure is I'm going to need a lot of more money going forward because things are just going to become more and more expensive. So then be an honest banker and replenish your pool of system so that you don't run out of money. So policy loan balance, because in this example, as I said, they're not going to pay by policy loans until the debts are paid off. Total policy loans taken are $84,088 to eliminate $120,000 in debt. The interest and policy loan accrued to 3,387 because they weren't paying any loans back. They're the banker. They decide when to pay it back. So the total loan balance after 36 months is 87,475. The cash inflow per month is 1795amonth because that's how much they were sending away towards snakes and dragons on those payments. So you're going to take that money, 1795amonth, and then use that money to pay off all the policy loans. Total policy loans repaid in four and a half years. So this $87,475 of policy loan balance using 1795, all that money recaptured in four and a half years, $120,000 in debt eliminated and recaptured in seven and a half years start to end. This is a policy. So by year seven, they've recaptured everything back in the system. At year eight when they put $20,000 as premium in the policy because seven years to eliminate debt. Now they're at year eight. The cash value growth from year eight to year nine is 27,986. They put in 20, the growth is 27,986. So what really end up happening by using this process to recapture the interest, they end up not just reducing the debt, they end up building a stronger net worth in this tool where it's producing more money in growth than what's going in. So when they started this journey, this is how the life was. The red represents all the debt they had. The green was the policies. They were just getting started with the policy and as they worked towards recapturing debt, the debt went down and the net worth and the policy just kept going up. So they end up in a big positive net worth, extra cash, extra capital, keeping money in the family that now they can spend on other things that their family needs money on. So what do they have now? Do they have less stress? We can't put a price tag on it because all those $120,000 in debt is paid off. Do they have more control because they don't have those payments to the bank. They have an entity where the money is sitting that they own, they control. They have first right to access this money. And when they access this money, the money still grows. And when they access money, they can repay the loan back on their own terms. They have more control. Yes. Monthly cash flow from payments 1795, that's when they took that extra money or that's when they're going to take that money and do another policy in Glenn. Now Glenn also gets a whole life policy. Cash value growth year eight to year nine, increasing 27,009, 86. They put in 20K. The death benefit started at $400,000. Death benefit increased to $868,000. And now the cash value is growing every day to match $868,000 of death benefit. By age 100, it started at $400,000. So the policy is so much more efficient. Every year the death benefit is going to increase, which is going to pull more cash value growth, more dividends, access to more capital, growing every day 179,267 while eliminating $120,000 of debt. So they eliminated 120k in debt while trading 179,000 in access to capital all at the same time. Obviously the net worth has also increased. Half the banking function on the things you finance work for you versus against you. And the best way to do that is by working in a environment which helps you recapture interest, not in an environment where you're losing interest or paying interest. As time goes by, economy is going to go up, economy is going to go down. And you have experienced this already. Stock market is going to go up, stock market is going to go down. You have also experienced that real estate goes up, real estate goes up. You have also experienced that interest rates go up, interest rates go down. You have experienced that also. One thing continues no matter what that thing is called, the function called banking. Someone has to control that banking function in your life and it should be you because it puts you in the strongest control position. And the best way to do it is by becoming your own banker. Because this is how you work in an interest recapture environment. Create your stress free way of living by taking back control from the banks, manipulate the stock market, the government. You should schedule your call because this is how you're going to know how this can work for you. How you can build your own stress free way of life by becoming your own banker.

Infinite banking has nothing to do with life insurance. Why would someone need to qualify for the insurance then?

There's a distinction between what you're buying versus what you're implementing. And there's a lot of marketing going on where you may hear phrases like you can purchase an infinite banking policy, come and get your infinite banking policies, they don't exist. What you're buying is a dividend paying, participating whole life insurance contract or ideally a system of contracts. What you're implementing is a process. There's a distinction and it's unequivocal. And in addition to that, what Nelson meant is that he wanted you to understand the life insurance contract is just the best tool to get the job done. Why doesn't it have anything to do with life insurance? Because if you put the best tool for the job in the hands of an incompetent, then not only is that person not going to turn out any good work with the tool tool, they're going to break the tool and then they're going to blame and point the dirty end of the stick at the advisor when the only person you got to be pointing the dirty end of the stick at is yourself. So just understand the distinction that the policy is a tool, the concept is a process.

What happens if the person cannot pay back the policy loan?

We Engineer the policies for maximum flexibility so that in the event of something like that happening, there is a wide variety of options to keep the policy in force, to temporarily not have to come out of pocket for premium as outlay from your own financial resources and then you can resume and pick up where you left off at a future date. So that's why again, you need a really good coach so that when you perhaps encounter something like that financially in your life, you've got someone standing right alongside you to help guide you through that difficult period and then get things back on track for you when your financial situation improves again.

What is the policy loan process? Looks like policy loan process is a very simple process. Now, insurance companies have also come a long way since, you know, we started this. It used to be a single page document that you had to complete with your policy number, your name, how much you need, sign it dated and then zap that in via email to the insurance company with your banking information. And that's basically how easy it was to request a policy loan. And then within 5% business days the money would be in your bank account with with no questions asked. Now it's just an electronically. So there's a button on your client portal access and you can just click on that button, it says request a policy loan. And they're going to ask you how much money do you need? You just put in how much money you need. They're going to ask you do you want the policy loan to be sent to you via electronic deposit or via check. And then you just hit submit. And then based on your your way of requesting policy loan, whether it's electronic deposit or you want to check, they'll just do exactly how you want it.