This is What the Ultra Rich Do To Stay Wealthy!

I have a question for you. Which would you choose, option A, 10% or option B, 3%.

If you can type in the chat, what would you choose?

Option A or option B?

So I see A's, B's, depends. Very interesting. See lots of A's. I see. What are the terms? And it depends. Cool.

Well now what if I added some more information for you? And when it comes to money coming to you.

Does your answer change? If option A has 10% of 100,000 or 3% of 1 million.

Which would you choose now?

Very cool. So now.

If you're looking for more money, if your objective was to look for more money, then the Obvious is option B, 3%.

So now you've often heard about this concept called financial control. Type in the chat. What does that actually mean for you?

So I see, I decide. Leverage.

Flexibility, independence. Decide.

Control your own bank. I control how money behaves. I control the terms, options. Decide. Awesome. So you can see that it's a very mixed bag of a response that people have as it turn as it comes to this concept, financial control.

So.

The problem is it sounds like fancy marketing terms and you're going to get a whole bunch of terms just like this you got. And it's really confusing what it is. And I'm not going to profess that I know exactly what it is, but what I want to go through is I just want to share with you. It just sounds like a lot of overused words that makes you feel like someone is trying to sell you something.

So let's start with eliminating all of the noise and the overwhelm and focus on what's important has been lost in plain sight because it's just happening in plain sight. It's just you've been too distracted to see it. Now let's just take a look at this. You notice that this is baseball and there's a ball there and it's been circled for you. And guess what's happening?

Where is the ball? Where is it? Where is it? Where is it?

Oh, there it is.

When you're looking for financial control, clearly it has to do with money. So what is money? Now, money is any verifiable record that is generally accepted as payment for goods and service, repayments of debt, such as taxes, and in particular country or social economic context. Now, the functions of that money is a medium of exchange, unit of account, store of value, and sometimes a standard of deferred payment. Now, just to kind of simplify it, maybe you can agree with me that money is either just paper and Coins or digits on the screen.

So have you ever wondered how does money work? Let's just visualize that there's a pool of money in the world.

And with that pool of money did everyone get an equal share of that money? Just type in the chat, did everyone get a equal, equal share of that money?

So I see lots of no's.

Has anyone ever wondered why.

Someone has to have control where the money goes? Right.

So where does the money come from? Well it gets created from a bank and it gets distributed amongst approved distributors and therefore creates the banking system.

There are two global banks. There's the World bank that you see right here and then there's the bank of International Settlements. All the money in the world flows, that flows through these banks here and they're all located in Switzerland.

Now in Canada though they have also set up shops locally called central banks. And you can see on the bank of International Settlements on the left hand side that's the bank of. The Central bank of Central Canada. Central bank of Canada, sorry. Now the Canadian money supply which is the money created is created by the central bank. And who owns the bank of Canada? It's the Crown, it's a Crown corporation and Canada's central bank.

And once it's created it's sent to these commercial banks to distribute it to the public.

So how did they make sure everyone uses it? Well the government makes it legal tender.

And then they regulate and control it through something called the Bank Act.

So let's take a look at how much that money pool is. And what you see on the right hand side is four levels of what's called the money pool supply. And that money supply is listed in various forms with different meanings but in combination they're M0, M1, 2 and 3. So if you add it all up it's that money pool is about is $7 trillion more than that. So all of the money that's available that's circulating, that's either paper money, coins or digits on a screen is $7 trillion.

Now let's put this into perspective. Take a look at how much money your family brought in pre tax last year. I'm just going to give you a little bit of time to just come to your mind and think about how much of that money did you bring in. And another easy way of looking at it is what was your income that you filed for taxes last year.

Okay, so now you've got that number, I want you to divide it by the total money pool and I'll just put it back on screen for You So you can see, and here's the example that I have money coming in. So that's the amount of money earned is $100,000. That money pool is 7 trillion. Now if I divide the money that you've brought in com as a percentage to all of the money pool in the world, your share of that money pool that you brought in is 0.00000.

So not even 1%.

Now let's add a little bit more of a dimension to it. Let's look at how much of that money that comes in you get to keep. So subtract all the money that goes out, you pay for expenses, utilities, taxes, everything, you name it. So what do you actually end up saving or keeping? Now if you add your net worth, so assets minus liabilities. So that's the amount of money that has also been exchanged into those assets minus those liabilities, that's what you also get to keep. And that's an accumulation of what you've built over time.

And here's the example. Money in was a hundred thousand. And for a general family, including taxes and expenses, that money out would be 80,000. So the net money that gets to be kept on what was brought in was 20,000. I just used some simple numbers of the net worth is 1 million. So if we add it all together, the positional money pool for that period of time is 1,020,000. So let's now divide that by the money pool of 7 trillion. And so now that makes you have a higher number of 0.10000131%. So there's a slight change of an increase. But with respect to the total money pool in Canada still hasn't reached 1% yet.

What I wanted to just bring all into perspective is someone else, which is not you, controls all of that money supply.

Right?

So how can I get more financial control for myself and my family? That's probably what you're wondering.

The financial entertainment industry, as you looking at this, which is to focus on some form of a rate of return, that 10%.

Return on your savings.

So if I take that net amount of money that you get to keep, that you brought in and multiply it by that 10%, then the amount of growth in that money is 2,000. An extra 2,000 on top of that.

So the first and most important thing you need to change is your mindset. Now for some people it's actually really easy. And for others it requires years of programming that needs to be changed.

Now, in case you don't know who this is, this is our Nelson Nash, the pioneer of this concept, becoming your own banker. And one of the golden rules that he shares is rethinking your thinking. And it's in this book, becoming your own banker. So the concepts I'm going to be talking about today about mastering this unseen force in your wealth creation journey comes from the inspiration from this book. Now, if you haven't heard about becoming your own banker, or if this is your first time seeing this book, or you're watching one of, or you're one of the viewers watching this recording or live on YouTube, just make sure you also visit watchibc.com to get access to a free 90 minute training about the details of becoming your own banker. That's how this process starts. It's about getting a copy of this book and reading and becoming your own, learning about this concept, becoming your own banker. So I'm not going to dive into all of the concepts that are covered in the book and in the training there. I want to really add some new value in terms of giving some more clarity on how you can master this unseen force that I'm talking about, which if you haven't guessed yet, is financial control.

So for financial control, one of the thoughts that you probably have is how can I have more of it? Because the more that I have, the more financial control you'll be in right.

Now. As soon as you have you think of having more money, the first thing that comes to your mind is fixated only from an investment standpoint. How can I grow more of it? What's my rate of return on my money? When I put it in this place, I'm focused on finding what I'm putting my money in so I can have a higher rate of return that 10% now. So if you try to chase 10% with your positional money pool though.

As an example, here's what you can try to do. Also take what you have built in your net worth and also try to get 10% on it. So that's 102 from that money pool.

What ends up happening is you're probably then ending up chasing returns and ignoring your risk. You like the dog over here, chasing your tail all the time, running over and over trying to find the next big thing that's gonna boom for you to have so much more money that you're looking for, but you're ignoring the risks. And at some point you may cross a line where you become desperate and then you may start gambling to make up for that lost time.

Is it even realistic to Achieve that rate of return consistently without losing money.

Another way you can think about getting more money is making it. So instead of investing it, you think about making it. You provide some value. For example, your labor. When you're an employee and you work for a company, or you're a company and you provide services, maybe you do lawn care services, renovation something, hair care service, anything along those lines, products. Maybe you sell some phones or shoes or handbags. Whatever it is, you are providing some form of value for someone in the form of products or services. And in that way you've earned an extra $20,000. And then you think it looks like this, where that money in increased from 100 to 120, money out is 8,000 80,000. So that money out you think would be 40,000. And then your positional money pool should be up to 1,040,000, right?

Instead in Canada on that 20,000, this is a little bit more realistic. There's something called taxes of 10,000 additional on top of that 20,000. So your real money out that you actually get to keep of that 40 that you made 10,000 went away was 30. And then you're still going to follow the same process of trying to take the risk to get the 10%. So before returns is 2,000, you just get an extra 3,000 out of it and sorry, 1,000 out of it. And same with your positional money pool.

And you're probably like, what? What's going on?

Well, let me ask you this question. Do you enjoy paying taxes? Now, The Fraser Institute, August 2023 issued another research study and it shared that Canadians now from their income are paying 45.3% of that in taxes.

Now in their study, an average Canadian brings in approximately $100,000, so $50,000 each. So 45,300 of the 100 of it goes to some variety of taxes. And it boils down to all of it going to the cra. One person or one corporation. And if we kind of look at it that the 100,000 was 50 and 50, almost one spouse's pre tax income of 50,000 goes to pay the government for essential services for Canadians. Here are some of those essential services for Canadians. Well, The Fed spent 1.5 million on hotel rooms during a UN summit in Montreal. Or what about building an $8 million barn in Rideau Hall? How about when the Christopher Freeland wanted $2 billion for a non existent green corporation? Or 99 stupid things the government did with your money.

Now money's definitely being collected from you, whether you like it or not.

And here's what they're taking care of Canadians because on the left side you'll see this is a snapshot of Vancouver. I don't know if anybody's been to Vancouver. I have. And it's a very.

Unique position to be in.

Or in Toronto with all of the encampments driven underground.

Now with all the problems that are existing in society and all of the taxes that are being collected to pay for essential services, you would think it would be properly deployed in our country. But let's just take a look at the other side where 400 million went to humanitarian aid to fight COVID 19 or how about the defense spending for NATO and they're short $75.3 billion. I think that's a lot of money that could help people in Canada.

Now let's take a look at the position of the government of Canada assets and liabilities where the left side. Just in case you haven't read financial statements, I just want to share with you what I've highlighted is here are their total debts, which is 27639198 in thousands of dollars, which is $27 billion.

On the right side you'll see here's what their assets are.3 billion. So overall their net worth or net financial position is a loss of 24,000. Sorry, 24 billion. 4 7639. Now I don't know if anybody is a negative net worth of that large, but just let me know. I'm not trying to make you feel bad.

Now let's take a look at how much money that they're bringing in. Revenues and expenses. We're all smart people. If revenues are larger than expenses then you have a surplus or a profit. If revenues are less than expenses, then sorry, more than expenses then you have a deficit or a loss. So on the left side you'll see their expenses. 1866-504-2000s or $18 billion. Here's all the spending that's happening and let's take a look at how much revenue they bring in.52 077. So their net loss is 2247 104. Sorry, in 2023 was 127-67-201. When I was putting this together, I was shocked to see 2022 to be 22471 04. I'm not trying to joke about it because I just a little bit lost for words and how serious of a situation that we're in so that the government is in.

So they are in a net loss losing position annually and also in a net losing worth position.

And I just wanted to take a nice excerpt from the book. The lawmakers create a problem by spending money they do not have and then they create a solution in the form of an exception to the rules that they've created.

So where do you suppose they're going to look for when they need more money? Well, their first choice is probably borrow more money from their, their Central bank of Canada.

The second is, comes from you. In what way? Increase taxes. And here are just some of those taxes. Income taxes, which is the taxes for you bringing in money. I mean you work for it, you earn it. So they'll tax you on that money. And then there's something called excise taxes like hst. This is taxes for you spending money. So when you go to the out retail store, the mall, and you buy something, you're if something's listed at a hundred dollars, not actually $100, $113, that's money out, that's $13 that's going to the government for you spending money. Then there's property taxes, believe it or not, there's taxes for occupying the crown land. Not sure if anybody have actually looked into their land plots, but they don't actually own. You don't actually own the land. If you own a home, it's owned by the Crown. Then there's fuel taxes, taxes for traveling.

And then there's this thing called carbon taxes. Wait, what is this carbon taxes? Now somehow Canadians have been told to reduce.

Carbon for climate change for the betterment of all Canadians. Wait, what, what is that?

Now carbon taxes have been branded as emissions and you probably think of it as factories, cars and anything else like that. So even though they're not increasing your taxes, they're just adding new taxes that you've never really seen before. Now here's something. Cow farts and livestocks are dangerous for climate change, as Bill Gates would say.

Now, for those of you missed learning organic chemistry and has, was, wasn't present in class for this lesson, I just wanted to share with you something though. Everything in our bodily anatomy comprises of carbon. So if carbon tax comprises of carbon, I'm just not going to say anything on this next slide that's coming up.

So sounds like they found a way to tax you for being alive and living. Now.

The natural result of such a process, a system in which the government controls everything you do and they can and will change their mind upon the slightest whim of the times.

Maybe your hope is that the next white knight you vote for will save you.

Maybe your local representative will give you financial control.

Or now you know who supplies the money. You know who controls them, controls the money.

So let's start with shifting your perspective on gaining financial control.

Let's start regaining financial control by correcting the confusion around misunderstandings about what tax rates are. And look at tax volume. Maybe this is the first time you've heard of tax volume. Well, I'm going to take it from here. I've. I'm introducing that to you right now.

Let's recap some of the position. The income tax system is a progressive or punishment system. The more you make, the more they take. You'll hear financial professionals saying it's okay your average tax rate or.

Your marginal tax rate only increased slightly. Ask them how much they know about the income tax code. It's about the tax volume and not the tax rate. So you'll hear about two common average tax rate, marginal tax rate. Average tax rate means the total taxes divided by your total income.

Marginal tax rate means for additional income that you've earned above the amount that you've earned, you'll be taxed at that new tax rate.

Confusion. I got it. It's tax rule. So let's walk through an example together. So here's a $100,000 example where including federal tax, provincial tax, CPP and EI premiums, the total tax is 26,000. So the net after tax money is 73,653. So notice how the average tax rate is 26.35. If you divide it divided by 100,000, that's how you get 26.35. If you look at marginal tax rate is 33.89. And.

You'Re just wondering, well, where'd that number come from? Well, let's go through this.

Pay attention to this average tax rate. Now, let's just say you've earned an extra $10,000. That extra $10,000. How much money do you actually get in your bottom line as what you receive as money to yourself before you pay for other expenses? Well, if you look at your average tax rate, your average tax rate only went up slightly.

So what I want to highlight for you is this concept in term called marginal tax rate. That additional 10,000 you earned, the government took $3751 or 37.51%, not 26.35, not 27.36, 37.51. So we look at the average tax increase is 1%, but the volume of tax that you paid was 3751. Isn't that ridiculous? So if you think about you just getting a bonus, you're like woohoo, I got a $10,000 bonus for my job for working the extra long hours. Well at the end of the day you only get 37. The government took 3751% of it dollars of it. So.

So now let me just walk through something called misinformation. Now remember now I'm going to dive into some things and just engage in the chat and ask questions in the Q and A. I've just posted an article from someone you probably have heard about. His name is Dave Ramsey and he talks about how it's more than possible to get a 12% return on investment. And where does the idea of 12% average return come from? Well here's his article and where he talks about his data. And his data comes from 1990 to 2020 the S&P's average was 11.55. 1985 to 2015. So five years earlier was 12.36. 1980 to 2010 it was 12.71. Now I'm not sure why you chose the most recent 30 year period. What about when the S and P started back in 1928? So there's a little bit of a selection bias here, but that's not the point of what I wanted to go through. Let's actually start with the information that he's using, his percentages that he's coming from. Now what you see here is what I want to share with you is data from the S&P 500. If you just do a simple Google search tree, we'll find it. What I placed it down on is actually onto an Excel spreadsheet and the first One was that 1990 to 2020 we take an average of all of that. The actual average is 9.35. Dave Ramsey's average is 11.55. So where did 2, he's missing 2.21%. Now if I do it from 2015 to 1985 he's missing 2.54%. Now if I take it from 192010 to 1980 taking 3%. So where is it more than likely that's going to happen? Let's start with actually the data of. Let's, let's get on the right data first.

Now all you need to do is look. It's actually outright lying and people are starting to respond to this is horrible, horrendous follow up, horrendous advice. People don't care about mathematics and back Testing and to justify swr, they need a new. They need a number they can use in their daily lives. And Ramsey got it wrong big time. Nothing about what he did. Met people where they are.

So let's clarify this concept about average return now. So let's say you have total 500,000 invested. What I want to highlight for you is the sequence of returns are more important. And again, this session is recorded so you can pause and dig into these numbers later all you want. Let's just focus on the lesson that I'm trying to teach. Do you have control over what the returns will be each year? Just type in the chat. Do you have control over that? Yes or no? Do you have a crystal ball knowing next year the money, the 500, 000 that you put in, you know exactly what you're going to get? No. No idea. That is not in your control. No financial control. Right. So on the left side, all I did was take $500,000 multiplied by the average 6.11% every year. Because that's what the average is. We assume that's what's going to be. See how the average is 6.11. Again, you can verify my math later at a different time. But work with me in what I'm just sharing with you now. Let's just pull out the actual S P500 from 2000 to 220, 2020, the actual returns. Here's what it is. Take the. Take the 500, 000. The actual return was negative 10%. And then, you know, just calculate the numbers through. Okay, now if I take notice how the numbers are different because there's different numbers involved to come to that average. Now what if I just did a randomize? I actually didn't really randomize it because it was going to be hard for you to follow. So what I did was. All I did was just replace the. You notice how I highlighted this in yellow? All the numbers you'll see is exactly the same except the two points, 2000 and 2008. I just switched those numbers. So 38% and 10% and look how drastically different. Same average, but look how drastically different the results can be.

So if you're trying to use past history and simplify with an average without going into the details and how the sequence of the number of what the returns were, you can have a very drastically large and different outcome.

So the sequence is more important. Now, increasing your money pool can be done without gambling your principal away and not being exposed to variables out of your control.

So start bringing financial Control to the money that you bring in first.

Before putting it up for risk of loss.

Now let's talk about this concept here. Let's take advantage of those high interest rates from the banks GICs. I just did a really quick Google search and you'll see when I was doing this presentation at 131, here were some of those GIC rates that were being offered by banks. So I have some idle money sitting around. Let me just go after those GICs.

With rates being so high, you've probably noticed that they've been plenty of advertisement and information about GIC is going on, right? So you know, people will talk about it, it's in things like Reddit and you'll, you'll really get a lot of information around. Let's, let's get those, let's help Canadians get those GICs.

Now, have you ever actually wondered why commercial banks would be so generous with giving 5% GICs?

What do they want?

They want your deposits.

Now what can they do with your deposits?

Well, let's go through an example here. Now you've heard of this concept called deposit banking. You have your money, you put it, give it to the bank. So let's just use, I'm going to be using Peter for quite a bit in my client discussion today or my case studies today. So Peter has 500,000 and he just gives it to the bank as a deposit to buy a product. So he has the money and then he uses it to buy a product which is a gic, that GIC agree. The commercial bank agrees to sell him that product, that gic, but he has to lock it in because that's the terms they agreed he the bank set. And then he agreed to those terms 12 months and agrees to give him 5% annualized return for it. So at the end of 12 months, really simply 500 times 5% is $25,000 of money that Peter will be able to have at the end of 12 months.

Isn't that awesome? Now, I'm not giving any financial advice whether GIC is good or bad. I'm just trying to educate and provide some information for you to learn about and entertain you. Really.

Now, when you've handed the 500,000 to the Commercial bank in a GIC, you've agreed to their rates, you've agreed to their terms.

You'Ve given control of your money to them.

There's no restriction in what they do with that money though. So what can they do with your deposit? What do you think they do with your deposit?

Well, they lend it out.

So let's use an example.

Mortgage lending. Paul wanted to buy a home that's valued at $625,000. He put down 20% as a down payment of 125,000. Went to the Commercial bank to apply for 500,000. The Commercial bank asked for a whole bunch of personal documents, sensitive information, what do you make, how much assets, liabilities, all of that stuff that they wanted to know because they're going to lend him money.

The banker.

Set up the terms and lent him the money.

So let's look at the specification of the mortgage loan. I'm sure all of you are familiar what a mortgage is. Let's look into the details of the mortgage. So the mortgage 500,000 interest rate 6%. Now in actual right now the interest rates actually could be higher. But I'm just using 6% to be a little bit more realistic. In our current economic times. The amortization is 30 years, meaning the amount of time to pay off this loan would be 30 years. The term length, which is what the bank sets and what Paul would have agreed to is I will be paying this agreed term for five years before the bank gets to reevaluate based on new interest conditions and whatever's happening to renew the loan further.

Now doing a calculation using a calculator, the monthly payment for this loan is 2,997 7. Or if we add up all of the money that is used for payment is 35,009 73 for one whole year.

Now.

Have you ever wondered on that 500,000. Well, mortgage is actually in Latin called death pledge. Over the 30, 30 year lifespan, how much money actually got transferred to the bank? Well, if we look at it here, the loan was 500,000. The principal, the interest after paying back that loan after 30 years is 579,193. Together the total amount of money is 1,079,000. So for that $500,000 loan you end up having to work for it to get back and pay 1,000,000 7 9, 79,000. And that's money that you have that you have to transfer it to back to the bank.

So let's dive into it a little bit further. The mortgage at 6% annual monthly payment, 35,973 annually interest payment. Let's use the first year. That interest payment on that payment is 2004 7,193 29,832 of the 35,000 is actually interest. The principal is actually 525 per month. Or 6,140 per year. So if we actually look at this calculation here, the amount of money that was used to pay for interest was 83%, not 6%.

And the amount of money used to pay for the principal was 17%.

Wait, 17% of my 37,973 that I paid to the mortgage only brought the loan down by 6,140. Wait, what.

Where did all the money go?

It went to the banker.

Now let's look at this deal.

That $500,000 home made or earned, more than double, which is 1,779,193 of the money to give back to the bank.

So let's kind of visually walk through this. Peter went to the bank, got a GIC, $500,000 GIC at a rate for 12 months of 5%.

Well this could possibly happen. That GIC, that money that the banker received, the banker went back to Paul because Paul wanted a loan for his mortgage because he was buying a home and they gave it to him in a format or a term of 30 year mortgage at 6%.

When time comes due, that $500,000 they have to pay back to Peter 25,000 as interest which is a cost to them. But in return for that mortgage in that first year they have to pay, they earn 29,008, 33 from Paul.

So there was a profit of 4,833.

Now what you see on the screen is I've extended.

Over the 30 year duration. Duration over each 5 year increment terms what the payments were each of those five years. Again things can change after each of those five years. Let's just keep it really simple and say the, the bank agreed to letting you have the 30 year mortgage with an amortization of 30 years and the term of 30 years. But I just broke it down into five.

What you see now that's coming down is the weighting of the interest, the 145 compared to the 179 that was the payment is starting to go down.

The principal of the 35,000 over the five years was 34,728 and it starts increasing. So only until around really after year 20 is when the payments that you're making is actually being more effective to pay down the principal. So you enter into a loan for an amortization of 30 years and only after 20 years is when you start actually making a dent into that mortgage.

More principal starts to get paid after that year 20.

Now for something that you Want using the commercial bank, the banker set those terms.

You need to work and bring in that additional 579,000 in money to pay the bank their interest. Wait a minute here. Hear me out for a second. I've got a billion dollar idea for the banker. For all of you who are bankers, if you're listening, I've got a billion dollar idea for you. What if there, you know what Statistics Canada has shown right now is there's now 40,000, 40 million people in Canada. The population has now boomed to 40 million from 30 million a couple years ago to now 40 million. Now what if we can get Canadians to sign up for mortgages that are three years, four years or five year terms and let's continue advertising wonderful 5% rates. And then we're going to get Michael to sign up for one of these deposits for $500,000 for one year, then use Michael's money to repay Paul's GIC when it's due and, and then profit on that spread of 4,833 on the interest collected again from Peter to pay Paul's gic. At the same time we've also made sure from now until 30 years we just continue collecting from Peter's second year mortgage or third year mortgage or fourth year mortgage. Couldn't we keep doing this for 21 years.

Banking with that 500,000? So of the 40 million people, let's assume 10 million people have homes and then.

If we take and they all have a mortgage on it, let's say the same amount of mortgage and they, and we get to profit 4008,33. So 400833 times 10 million. Not without the dollar sign. Sorry about that. Is $48,330,000 that comes in as excess profit from the interest cost that I pay for the GIC and the interest revenue that I received from the mortgage. Let's do it for 21 years. Isn't that the billion dollar idea? Anybody excited about that? Anybody want to do that with me or any bankers?

Any, any, anyone interested in that? It's awesome, right? I mean that could theoretically happen, right? I'm not, I'm not exactly sure if that happens right now, but that theoretically could happen, right? Do you think the banker would have thought about this awesome idea?

Technically this could be done. I mean, send me a reaction, let me know what you think.

So let's see how far the bankers could actually push this.

What if we formed a partnership with the government and wrote the rules and instead made sure for people's safety they have to give us their money or deposits in checking and savings accounts. And then when they use us, we're going to pay them next to nothing for that money. We'll also put branches at every single corner so that it's really easy for them to get their deposits to us.

Actually, I have another idea too. Let's also charge them fees and decrease the quality of services for, for, for people that use us and give us their deposits while we're, while we're at it. Because we're just running so many branches, we got to be profitable. So, so let's, let's make sure that we charge them good, good fees for it. What about that?

Now I just want to. You know. The government also slows your progress down by legally taking your money through taxes. For Peter, it takes approximately $26,000. 437 per year pays taxes. Sorry. Or 790,000 of money over 30 years.

So by using the commercial bank to help buy the home, Canadians have been taught.

Or conditioned for way too long to give their money to the commercial banks. And generally getting minimally to nothing in return. Because think about it, if I asked you for the same 500,000, you wouldn't give it to me for nothing. But for the bank, the commercial bank, you are comfortable doing that. Why? Why? Where's the logic in it? Why?

And you know exactly what they're doing with the money.

They've even taught you to pay them to hold on to your money.

This isn't a knock against the commercial banks. They've just created a position where people need and depend on them. Some of it is through mandatory laws with the government. The other is through some clever programming.

Now you need to buy. You need money to buy a home, to buy a car, for business, for renovations. Maybe you have a business that needs equipment like a tractor. And what about your retirement?

All of this needs the use of money.

You either have enough of the money through accumulating it, or you may have heard the term saving for it.

Or you don't have enough of the money and you have to borrow it. The first and most important thing you need to change is your mindset again. For some it's really easy. And others it requires years of deprogramming or unlearning some of the things that you may have been told and not verified it.

And here I just wanted to remind you it's time to rethink your thinking.

You can actually depend on the commercial banks a lot less.

Now this isn't for everyone though, because there has to be some honest introspection at this point. And a commitment to get out of financial prison must be a burning passion. Make sure you get yourself a copy of the book and watch IBC.com and also schedule a meeting with your coach.

So I want you to think about this. Do you possess the desire strong enough for the change?

That's what your coach is here for. To keep you focused on your commitment to you and your family, to hold you accountable and be the best version of yourself. What if you focused on harnessing the earning potential from the money you bring in?

What if you also harness the earning potential on the money you keep?

All without working harder.

But smarter.

By using a tool that has been properly designed by a practitioner who knows also understands the objective of bringing you financial control.

By changing the way you buy things. The process you still will need to buy things, but let's change the way you buy it. Now, we live in Canada, so we're all very familiar with events like this. So how are you going to clear the snow? You're going to need a tool on, or you can use your bare hands and feet if you want to, but you're going to need to use a tool.

And the most common tool you may know of is a shovel. Now if I just handed you the tool, the shovel, is the driveway still going to, is it going to automatically clear itself? Just type in the chat, yes or no. Is it going to clear, clear the. Clear the driveway for you? Of course not. Someone needs to use the tool, the driver needs to use the tool.

The tool is just a vehicle that has been specifically designed.

And just remember it's a tool. And that's just the first requirement.

Using it properly will get the job done. And so you could take the tool, use your training and start digging it, digging away at the snow.

If you use it improperly, you're going to break it.

And that tool that I want to share with you is a properly partisan, properly designed, participating, dividend paying whole life insurance policy.

And even if you have a whole life insurance policy right now, it may not be designed in the way to practice the process of banking. Banking.

When you are becoming your own banker, you still need to know how to use it to bring financial control to you and your family. And an authorized infinite banking practitioner is what you are looking for. They understand the process of banking.

Beyond traditional thinking of oh, this is a neat tool that you can put premiums in and then borrow against it and you can use it to invest. This person can be found on the Nelson Nash Institute.

And just like our team, we consider ourselves the gold standard when it comes to implementing the process of banking for Canadians across the board. And each one of our coaches are authorized infinite banking practitioners that you can easily find on the Nelson Nash Institute.

People love what we do.

Tariq says Elizabeth has been an outstanding advisor to work with and is thoroughly transparent explaining complex financial concepts relating to wealth generation and preservation.

AG says if you're looking into financial freedom, Ascendant Financial is a company to associate with. This team's professional service oriented, extremely knowledgeable, very privileged to work with. Jinjin Kent says Vern is and his team's incredible. The journey has been amazing. We looking forward to many years working ahead. I've been following Ascendant Financial for two years. I'm so glad I signed up. And then Marian says Henry, who's this Henry guy has been incredible at helping me rethink my thinking on the flow of money, how to set up a private family banking system and the power of uninterrupted compound interest by way of dividend paying whole life insurance. But for my business as well. Thank you Henry and the ascending financial team for getting me on the best to protecting my family and business all while building personal wealth one day at a time and preparing preparing it for generations to come.

Having the tool alone will still help. You just won't be able to maximize the potential of getting financial control. That's again if you want it. So working with an incompatible coach will limit your potential.

So the right coach will also organize it in a way so that she can build a system of policies waiting.

Then if it's designed properly, here's a robust tool. And now if I give you this tool, do you still know how to use it? Of course not. You still need to educate yourself and learn about using it. But and by itself it's still not going to clear a driveway. But when you use the tool properly, isn't clearing the driveway going to be a lot easier now?

So why would I need multiple policies?

Well Nelson says expand the system to accommodate all income all the money that you bring in.

Now if you're looking for more if are you hurting yourself by thinking about the rate again or do you see the volume now? Do you see the importance of the volume? Remember option A or option B. I think we've all agreed to choose option B. You're choosing to see more volume now have the system harness the earning potential of all the money you bring in.

So I've just attached 3% to the money that's Being brought in a hundred thousand, 3%. The banker sees 3,000 extra for being the banker of their money. The money still goes out at 80,000. We haven't worked on that approach yet. The net money out is still 20,000. So sorry, net money in that is after being spent is 2,000. The banker can still participate in that. And then we're going to do the positional money. So all of that money has gone in at some point. Let's reorganize that money and put it into the business of banking as the family banking system and capture another, let's say 3% with it. I'm just using 3% as an easy way of illustrating that's not what every policy does. Just using 3% as an example. Now, if we add it up, the total amount comes to 142,600, which is a difference of an extra 38,600. Did they do anything differently? They still use the bank. They just took control of the banking function and harnessed that potential of all the money that's coming into their family. And so now, just by thinking differently, that's a 37% increase, or maybe you want to call it 37%. Rate of return doesn't really matter. It's all nonsensical jargon. Sometimes.

Even if you have a policy or a system of policies, really easy to get tempted by the outside world easily fall and slip back into your default thinking. That's where a great coach will remind you. So make sure you schedule a call because you've got to take action. You're learning some concepts right now. However, learning the concepts is not going to help you take control yet. You've got to be able to be the one in the driver's seat willing to take control. So make sure you schedule a call with your coach, or if you're an existing client watching this, make sure you book a call with your coach to further the discussion on how you can expand your system to capture more of the money that you bring in. And now I want to introduce a really amazing concept that not many people think about, but I want to share with you in terms of a strategy. And it's really powerful and in the right hands, it's going to help you recover all of the taxes you're going to pay when you withdraw your RSP and more. And it all depends on if you have the right mindset. Plus, it does take a bit of time.

So now you may have been told without questioning it.

The best thing you can do for your retirement is to Put your money into an rrsp, you get a refund from the government today.

So when you are retired and in a lower tax bracket, you'll pay lower taxes in the future to get the money out. I'm sure most of you have probably heard that from multiple financial experts.

And Nelson also had his way with things too. At every turn you'll see financial planners, financial experts who without exception recommend that you should participate to the fullest extent possible in your tax sheltered programs.

Now admittedly before being introduced to IBC and becoming your own banker, I was ignorantly one of them as a cpaca. Now I never really recommended it, but it was really until some challenging events in my own life journey that brought me to look at this. In 2015 both of my parents were diagnosed with cancer.

It was only until then I really encountered the disappointments in the design of the rrsp.

The design of the RSP favored the government.

And not my parents, nor to what I believe other Canadians.

There are no financial guarantees using an RSP for Canadians.

There is most certainly financial guarantees for the government though.

And the financial guarantee is to design it in a way that to put the Canadians who use it into a higher tax bracket so the government can collect more taxes and then if your income is too high, they will pay less benefits.

Now to put the Canadians who use it into higher tax bracket, pay more taxes, pay less benefits.

I just wanted to use another section from the book. Wherever your wealth is accumulated, someone will try to steal it.

So before I kind of talk about the process of an rrsp, let's walk through the flow of capital and how it moves through the stages of the RRSP.

And the information that comes from it. So there's plenty of promoted information that talks about getting attacked about the accumulation stage. There's also information that promotes making sure the money stays in the rrsp. Now when we talk about the information there's really a, I think you can agree with me, there's a lack of emphasis and promoted information about getting the withdrawal out and how you the procedures on doing it. And then for a lot of people, they don't even realize that there's actually an end stage to an rrsp. So let's dive into those stages. There is capital, so that's the money that you've earned, which is earned income.

They have set up a rule where you can contribute to your rsp. So what's the rule of contributing to the rsp? Well, they've chose the lowest of your earned income. So if you have a T4 salary that's your earned income, 18% of it. So if you have $100,000, 18% of it, up to a maximum of 30,000 7, 80. Isn't it interesting that for this program that was designed for your retirement, they are limiting the amount of money that you can put into it. How is that for financial control?

And then what happens when you have moved the money into the rsp? Well, what does it have? What happens from a tax standpoint? Well, the tax standpoint is a tax deferral. You get to get a refund from the government. The government is paying you some money so that you don't have to pay the legal taxes that they've designed. They've given you an exception for it.

So that earned income of accumulation goes into that portfolio. That portfolio will suffer market gains, suffer market losses.

Get interest income.

And they claim. Or the most promoted information is this is amount of money that grows tax free. But have you ever thought about that? Sounds great. But what about the other side of the coin? Are there surrendered tax advantages around that?

So now you've reached the stage where you need to get the money out. So you're scrambling because there's not a lot of information around getting money out. So you're going to go through withdrawing the money.

And what happens in terms of a tax standpoint is it converts. So this is one of those surrender tax advantages, converts what you've earned in your portfolio to normal income. So which is taxed at the highest tax, marginal tax rates. And if it's too high, it'll impact your government benefits like OAS and guaranteed income supplement. So if you have too high, then the government will not pay you what you've actually earned of those oas and gis.

Now, at the end of the stage.

When you reach age 71, there is an event that needs to happen. It's called a conversion. You can either collapse the whole RRSP and get all the money out, or you roll it into another plan that has some new rules around it called a rifle, or you can put it into a annuity.

But there's also another end stage that people don't think about. It's called death, called deemed disposition.

So if you take a look at this diagram, you can really clearly see the areas where this is is all in the withdrawal or at the later stages. So it's also focused on what getting your deposits. But what about the withdrawal?

Now, one thing I just want to share with you is the tax code surrounding the RSP is complicated. Do you think the average Canadian citizen Who utilizes it, has read it and have truly an understanding of how it works.

Unfortunately, the tax code is so complicated that not every financial professional completely understands it.

Sometimes it makes me wonder if they even looked at the tax code before they promoted using it.

This is not to say an RSP is a good or bad thing, it just is what it is. We're looking at the design of it and whether the marketing of the information aligns with what it actually does.

It's just important to recognize whether it's suitable for you. So that's why you're here getting some additional education to learn.

You may have already have money in an rrsp, so let's focus on the information around getting the money out of the rrsp.

So let's talk about one of my clients who's an actual client, but elements of his information have been adjusted to respect his privacy and confidentiality. And his name is Peter. Now let me tell you a little bit about Peter. He's a successful business owner and he draws $100,000 salary. And through my coaching and from him reading the book keep taxes away from your wealth, he's actually learned that there's another way that he can draw money out of his business which was dividends. And we've changed that.

He loves IBC and he already has a family banking system in the personal side of things and the corporate side of things. And just for reference, he has accumulated $300,000 in his RRSP.

Now Peter's like you every hard working Canadian who just wants to make sure he has financial control over to have a safe and secure retirement. He hates the unpredictable environment of the stock market and his financial advisor was actually still losing money when in today's environment switching the holdings of what he had in his RSP to something as simple as GICs would have Preserv reserved his money.

So let's take a look at some of his options. His options was he could use his money in there and hope it increases every year.

He learned about the surrender tax advantages if he earned the same amount of money outside of rsp. Let's compare the difference.

When he looked behind the curtains of his portfolio of money growing tax free.

Let's use the $10,000 as the example with the impact on his marginal tax bracket. So remember that $100,000 the taxes he was paying 26,347. No different there. But what I want to now talk to you about is money coming out of the RRSP converges to the single source of income type that attracts higher tax Rate. What does that mean? So let's just take a look at this. You'll see money earned outside of the rsp. Here's how it's taxed on the right side is withdrawn out of the rrsp. Here's how it would get taxed. And the first thing you will see is it's labeled as other income. So if you earn $10,000, remember 3700ish, that 37.51% was. What was the incremental taxes that was being paid on top of the $100,000. So what if the incremental 10,000 came in the form of capital gains? Well, 50% of it is taxable, so it's only 1709 compared to if the capital gains was earned in the portfolio and then they needed to withdraw the 100,000 out. Well, you would pay more taxes if it was inside of the RSP coming out, which is 3751. The dividends eligible, which is 1927. And then if it came out in other income out of the rrsp would be 3751 tax personally, if it was outside on ineligible dividends, would be 3,000 outside, sorry, coming outside of the RSPs, 3751 and then earned interest 3751. So interest is still the same. Interest is. Interest is interesting.

Wait, money inside the RSP is tax free, right? So gives up income tax advantages to pay less taxes for if they were earned outside. You're giving up capital gains tax advantages that 50%, you're giving up dividend income tax advantages. There's something called dividend tax credit, and instead it's just converting them into normal income to pay more taxes on when you withdraw it.

Now, with his money residing in his rrsp.

Is he restricted in terms of his options on what he can use that money for? Just type in the chat. Is he restricted on what he can use as money inside his RSP4?

Yep, definitely. And what is he, what is he restricted to? Commercial bank products, Stocks, bonds, mutual funds, ETFs. Basically only what that bank has to offer. If some bank doesn't have something, then you might need to switch over to another bank and then you pay a transfer fee for switching, leaving that bank and all this kerfuffle, all that stuff. So you don't get a choice in how you use the money in the rsp. You're restricted. It's your money, but you're restricted.

Could he use it to pay for his private business? He knows his business because he, he works in IT and that gives him a 30% return on his money. Could he use his RSP to fund his business to help him get a 30% return?

No.

And here's where I wanted to pull and share the golden rule. Those who have the gold makes the rules.

Well, now we know that. Let's look at withdrawing the money all at once. What's the impact of doing that.

In his income position? $100,000. Remember what I said about marginal tax rate? Anything that he's earned on top of it will start attracting this 43.41%. That's pretty nasty.

So if he withdrew the money all at once, the 100,000, he would have paid 15% in taxes and then that 300,000 withdraws, he pays 152% more than 50%.

And just to share with you, the circumstances of taxes at death are exactly the same. If he has the same balance in there, even though he hasn't withdrawn it, the government is going to use the tax rule called deemed disposition and say, well, Peter has passed away. That money needs to go. We, that money needs to come out to someone. But even though it hasn't come out yet, we've got a taxi for it.

Clearly that was not the option he wanted to choose.

And he doesn't get to choose this one, which is death.

So like I shared, this is the same as withdrawing it all at once. One is predictable, one is controlled, the other is not.

And Peter has no control over his best before date. So his family could be left with a tax bill of 152,000 that is going to be paid from his RRSP. So he recognized the importance of immediately setting up a discussion with me to preserve the money he built in his rrsp.

His last option, as most people get told to do, is just draw the money out slowly. Then you run into complicated and annoying hassles and issues like how much should I withdraw? I want to keep my government OAS benefits, I don't want to pay too much taxes. I want to figure I, you know, like I, I. It's just so much stuff to read through and figure out. It's very complicated.

Now before we dove into all of those unnecessary, confusing details, we just had a really good discussion and Peter referred back to a very specific aspect of understanding his desire of implementing ibc. The real solution is to quit the government spending for all the programs and get out of the lives of the citizen.

And this is also, he could have higher financial control over his future instead of leaving it into the hands of someone Else who has no control over who he has no control over. His last person he voted for didn't really lower his tax bill. His 20 plus years with the commercial bank didn't even give him a lollipop.

So Peter took control into his own hands. So we worked together to add another branch to his family banking system. This one was focused on withdrawing the money out of the rrsp. He knew his money was sitting in government territory. He recognized the tax refund he got that encouraged him to cross the bridge and leave his money in government territory. He accepted his money was in government jurisdiction and they made the rules.

So instead of figuring out how to finagle paying less taxes, he just chose to free his capital and he decided to cross the toll bridge.

So legally he would pay the taxes.

To get get his money out.

He wanted to free his capital from the grips of.

I'm sure you know what that picture is about since he has no idea what taxes are going to be now and he knows what the taxes are now, but he doesn't know what it's going to be in the future.

He wanted to, he wanted the banks to stop profiting off of his money.

He was also fearful of having his money trapped. When the banking system does this.

He wasn't sure what his money was going to buy in the future.

His only request to me was how quickly can I do it?

So he took full control in setting his future destiny of his money.

Embraced change into the confidence of his family banking system. So I coached him given my experience. I've been a CPCA practitioner for over 20 years now and I've got a chance to actually solve a lot of complicated problems. It's not the time. What did I do with my time? I actually got the opportunity to work with a lot of clients to help them as a professional practitioner at the time. Now I get to enjoy doing helping clients implement the infinite banking concept.

And he decided to get the money out at a pace of six years.

So 300,000 over six years is $50,000 of a withdrawal per year.

Now he's going to cross the toll and that meant actually paying 50% taxes as a withdrawal. That's what we just discussed. That's the worst case scenario. The actual is actually less. But nonetheless I want to share with all of you what the worst case scenario looks at.

And he actually just wants to do it now before impacting his future government benefits, if there actually is any.

So he expanded his system with the outlook of starting with 25,000 premium for six years. So 50,000, half of it going to taxes 25 premium per year or six years now, which only meant 150,000 was going in. And I just want to make sure because people watch the content and I don't want to be misquoted and I just want to make sure this is very, very clear. I or we do not encourage nor recommend to stop funding premiums. Policies still have a possibility that it could collapse. There's no guarantee that it won't. And this content was simplified and designed to illustrate the policy owner to show that they have contractual authority to stop funding. No one controls the policy owner's behavior or decision to do that and a policy owner's behavior can negatively impact the outcome and the quality of the policy. Everything that I'm sharing with you is for educational discussion and learning purposes and does not constitute as financial advice for everyone. Everyone's circumstances are individually unique and must be adequately assessed, discussed with an appropriate financial professional. So now that I've got that out of the way, 150,000 was going in. So let's take a look at that. Premiums funded in taxes paid.

So that's 25,000 for six years.

The taxes he's paying is 25,000 for six years.

Immediately in the first year. Funding his premiums though, he's protected from paying the tax bill using 50% of his RSP at death and instead he set up.

Because of the tool he's used, an immediate tax free death benefit of 500,000. So he's protected from paying the tax bill using 50% of his RSP. And now it's the insurance company's death benefit that they owe him that will be able to be used. So based on the design, his tax free death benefit is going to increase annually and the taxes his RSP would pay decreases annually. So death benefit goes up, the taxes he would pay goes down.

So here's what the money going in looks like.

That's the death benefit going up.

That'S the taxes because he's getting the money out going down.

At the end by 56 he's gotten all of his money out of his RSP. So there's no money, there's no more taxes the government can take from that.

So how much does it he pay in taxes to get it out? Now I've just simplified a chart for you and I just wanted to show you something. Age 51, 2, 3, 4, 5 and 6 is the years that he's funded his premiums and you can see it's also the cumulative amount of taxes paid 25,000 the first year, 50,000 cumulative second year, so on and so forth all the way to age 56. But because of the way that we design the policies, there's something called cash value that increases every single year. And notice how the bar that I'm sharing with you, that bar by age 56 is higher than the amount of money that he's put in in terms of premium. Could he stop paying premiums? He could. Should he? No. We're talking about becoming your own banker, getting financial control. He brings in money. Where is he going to put his money back into his policies?

He's going to practice being an honest banker. Now if you talk to someone who only thinks of a properly designed whole life policy as an insurance product, they'll be like, oh yeah, don't have to fund that expense anymore. But we don't see it that way.

So for the 150,000 in taxes that he paid to get his money out, how much cash value did his policy build without any more premium? Again, just a very simplified illustration of what that would look like.

Now here's the more beautiful thing. The longer he lives, the more time he gives his cash values to continue growing.

Not because of the financial markets, not because of cryptocurrency, not because of interest rates, not because of real estate market, not because of taxes, not because of whatever.

It's because a properly designed dividend paying whole life insurance policy has contractual guarantees built into it. The risk is on the insurance company, not you, to build the cash value so that by age 100 it must match the death benefit. There's no exception to it.

So he feels more confident in his cash values and death benefit with a legally binding contract with the insurance company. And for the way that I set them up, and we prefer to set them up here at Ascendant Financials with a mutual insurance company rather than comparatively the terms and conditions that the RSP was residing in at a commercial bank and the decisions that the government decides to make, or the government, sorry for the spelling mistake.

Here's the journey of his money. Now, that was the premiums that went in.

That was the taxes that he paid. Again, we're just assuming he's going to live all the way to age 100. Maybe he doesn't. It doesn't matter.

That's his cash value during the time that he was funding the premiums.

And even though you see there's no more blue, I just shorted the information a little bit easier to digest. Notice how the cash values start going higher than the Line of the taxes that get paid higher than the line that the tax get paid all the way to age 100, which is where the cash value matches the death benefit, which is $997,334.

So if we take a look at Peter's 300,000 RSP withdrawal plan, money withdrawn per year is 50,000. Length of time is six years. Taxes paid on that 50,000 was 25,000. So the premiums that was left went to go fund the policy. 25,000 per year after six years of his withdrawal plan. Remember he decided this plan, we worked on it together. 300,000 taxes paid. 150 premiums funded. 150. What happened at age 1009-973349-97334.

So.

That was the money that went away to taxes.

That was the money that was recuperated from withdrawing from the RRSP and went into the policy.

That was the net amount of money after cash values paying the taxes. 9, 9, 9,000. Subtract the 1 50s. 847,000.

Are you okay? Type, type this in the chat. Paying 150,000 in taxes today to enjoy 947,337 through contractual guarantees.

So the net benefit to Peter and his family, the money coming out was 847,334.

Now if anybody answered no, I just see a lot of yeses. I'm still going to say this, please give me your email and phone number. I'm going to help you book a psychiatric evaluation for you.

Now, with his money outside of the rsp, he can practice the process of banking in his family banking system. And it's again, not the policy that does the work, it's what he does with the policy. He's becoming his own banker and practicing the process of banking by using his policy. Where does he learn to use it? Some of the guidance is coming from this book.

So with the money located in his family banking system, is there anyone preventing him from accessing policy loans against his cash values? Again, some of our clients can probably attest to this. If you haven't gotten the policy or you haven't set up your system yet, you don't know, is there anyone preventing. Well, Calvin's got a smart response himself. I, I agree. Yeah, only he's the one that prevents himself from doing it. But there's not really. When you own a policy, you have a portal and then you log into the portal, you click a button, you go through some question, very simple questions. Of questions like how much money do you want? What? Where do you want the money to be sent? There is no complicated gathering of documents to put it all together. And any income verification questions, Nothing of that nature.

Now, when he gets the money, is there anyone restricting him on what he gets the money for? Imagine if you applied for a mortgage for a home. Can you get that mortgage and then go use it to spend on something else? Probably not. They pretty much restricted you on using that. Well, in this case, no. No one's really restricting him. Yes, Calvin will say again himself. So at his discretion now, can he use the money to invest his own business that gives him a return of 30% instead of trusting his financial advisor that he had before that was losing money in an environment that just on simple interest could have gotten him back some money without losing his principal? Absolutely. We're comparing his money located in his RSP and his money located in his family banking system. So Peter has reclaimed the control of his money away from the hands of the grim reapers. Now here's the most important question that I get so often. I have the cash. Why should I borrow from my family banking system and incur interest? So please pay attention to this section because it's super important or watch it again on the recorded YouTube. And it's normal, because some people just need repetition to stop slipping into their default thinking of relying on the traditional banking system.

So why is it so important to have the right coach? This is why it's important to have the right coach and continued educational support.

In our team we have the Banker's Vault, which is our YouTube channel. We have podcasts in case you're driving and you're not able to watch video. You can listen to areas there. You also have, when you are a client, a dedicated private portal that shows you specifically all of this more advanced things of using your policy. And we've just newly created, I got the privilege of doing it creating a tax knowledge base related to just some of the concepts I've shared with you today. And you can access this 24 7.

So let's use Peter's system as an example. Peter has 20,000 in cash. Should I use the cash instead of borrowing from my policy? Cash values, Sorry, borrowing from the cash values against my policy.

Here's Peter's policy attributes. Just sharing with you. The cash value increases daily at $8.55 in year one. The cash value increases year two at $10.15. How does it increase? I know because I helped design this policy for him. So we had the Discussion. We've done this so I know what it looks like. Everybody's policy is different. It depends on how much they put in. It depends on their gender, depends on their age, it depends on their situation. There are so many factors that depends. Or you can surrender to being used to some interest rate that the bank of Canada sets for you. And that's what you're accustomed to. So this is where some opportunity to rethink your thinking is really important. To see the policy loan available that he can draw is 20,000 now. Oops, I missed put this. But his death benefit should have been 500,000. I wrote that down incorrectly. But it's 500,000.

Now. It doesn't matter what he uses the money for. Whether it's investing his money in his business to gain that 30 annual return or investing into a project that he can get 15% or pay for a vacation. That may not make sense but for borrowing money for. But in this context it still could make sense. It makes better sense to do it this way or pay for just general expenses. What he uses the money for is infinite. That's why it's called the infinite banking concept. The key is getting financial control so you can use it. When you use it, that's when you want to work with your coach. So Peter will be better off drawing the policy loan to pay for what he wants to pay for. So let's walk through that. Reserve the cash for next year to capitalize the system with premiums. So numbers you say, okay, let's go through that. Peter wants to use 20,000. Where should he use the money from? The left side you will see is his banking system. I call it the PBS. So in his commercial bank he has $20,000 already sitting there. In his system he has $20,000 that he can draw as a loan. And then in the commercial bank again on the comparison side he has the 20,000. On the right side again sorry, left side, my other right, left side is year one increase 8.55. Year two increase 10.15. The banks return on that money is 5% on interest rate which is very generous for savings. And annualized 1000 which is a daily amount, 1000 divided by 365, it's $2.74. Now if you borrowed money from the insurance company against this cash value is 6.5% and annualized that's 1300 or $3.56 per day. So if you took $20,000 it'd be $3.56 per day charged.

So if he doesn't use the capital. Here's what happens in a system. His system increases $8.55. His bank not really gives them daily $2.74 but maybe they'll pay them monthly, whatever that amount is. Now he uses the money and you can see the commercial bank amount is still sitting there. But his PBS capital, the banking system is zero. Well and then on the commercial bank he borrows. Oh sorry, he doesn't borrow. He withdraws the 20,000. And what happens when you withdraw the money? His cash value doesn't increase it. He doesn't get any more interest from the bank anymore. So it he stopped the growing of money. His money pool is not growing anymore because it got sent away. The earning potential was lost. But let's look at the earning potential in his policy. It still grows at $8.55 but because he borrowed money he has to pay $3.56. Now let's take a look at this. Maybe you can type in the chat. Is he further ahead in terms of the pool of his money?

Type yes or no. Is he, is he growing? Is, is, is his pool of money growing more than nothing? Yes, it is.

So you're sitting with that 20,000 in that commercial bank. That's the next question. What am I going to do with it? Well.

Why not use that to fund the premium next year? And when you fund the premium, what happens to his net capital increase? It goes to $10 and 55 cents. So before it was $8. 55. Now it's going up $10. 55. Now let's just assume he's using the 20,000 for some expenses. How do you pay for expenses next year? You have to replenish the savings account. So he replenished it. So the same thing happened. He replenished his money that was earned inside of the 20,000.

So he just repaid the policy loan. So he's still fine, but now he doesn't have money in his commercial bank. The only difference is he just took that 20,000 and saved it for next year to capitalize his system so he could take advantage for a higher daily cash value increase. Because he got older. And as he gets older he's like fine wine, he gets paid more.

So let's not forget he also has a growing tax free death benefit.

And now let's go back to being in financial control.

I wanted to share with you a personal story that both of my parents combined earned less than the average Canadian single income today, which was $50,000.

They both worked two to three jobs not sleeping enough. But they found some ways to be disciplined with their money and saved it.

Now the money they saved though went to following bad guidance from their financial advisor from a commercial bank and it got saved into their rrsp.

The money that went in the refund that they got was about 15% for every deposit. Now when I looked at the amount that was built, it was a respectable and sizable rrsp.

All of it had to do with their contributions though, and none of it had to do with the bank's returns. The bank made more money in MER fees than they did in money growth because of how long it was in there. My mother still lives today thriving after her life threatening cancer diagnosis. My father's fate wasn't the same.

Unfortunately we didn't know about IBC or any kind of life insurance for that matter. That unfortunately. Now with all the money that went in to get the money out.

Remember my parents paid 15% to go in and now for my mom to get that money out. It's 50% to get that money out. The hundred dollars of groceries that you could buy before is definitely not the same hundred dollars you can buy for groceries today.

And here's the most important point I want to leave with you.

This works for people who have high income.

Or low income like my parents or like Peter. They can all do it because they set their mind to change.

They also have a burning desire to free their money away from the shackles and take financial control of their financial future. They just needed a vehicle or a series of vehicles to do it. That's where they implemented ibc.

The infinite banking concept is an exercise in imagination, reason, logic and prophecy.

So you can do it too. Now you have two options. The first option, you can keep things as they are and continue letting the government's RRSP bleed you dry through taxes.

Option two, you can choose to withdraw the money out of your RRSP strategically under your control while you're alive today and protect your wealth forever. Implementing ibc.

Your journey to financial control for you and your family rests with you. Choose making the earning potential on all of the money that flows through your hands. And you can do that by starting with scheduling a call with us at 780-809-4599 or reaching out to your coach specifically on making sure your plan to financial control progress is being achieved.

And way to go.

Thank you. Just as a quick value check for everyone.

Out of scale 1 to 10. One being you wish you did something better with your time or 10.

Let me know what was amazing. Really loved and this really great use of your time, let me know in the chat. It.

Lots of great feedback there. Henry, great job.

Awesome. It's great. It's a lot of fun.

Was there any questions that we wanted to go through or anybody who had questions that in particular would benefit from just us discussing about it?

Seems like our team did a pretty good job at answering questions. We have two in the chat box here. So anybody in the chat, I encourage you if you have any questions to put them in the Q A box for now. Henry, one of the questions was this is regarding to the cash value. My guess is yes, but how much is that growth per year? About 5% less than inflation.

It seems very case specific. But.

Jordan, maybe you can add some more context for this question. This will help us give you an answer. This is the second part of his question. So Jordan had asked earlier, so how can this process help me avoid inflation? So that was his first question.

Oh yeah, I was about to add into it. Most likely, I think we can all agree that we don't control the quantity of money that gets issued into our economy. And if we were to compare, do we want to continue relying on the conventional banking system the way that it is, or using this concept that Nelson Nash has pioneered? At least you'll still be further ahead.

I think that that's all the questions in the Q and A box. Henry, I had a question. I've been working with you for a while now, but I never actually got a chance to ask you, coming from your previous profession of being a cpa. Right. How did you find IBC and what was it that really pulled you towards IBC as a process and understanding that it works with all the knowledge that you had and the financial noise?

Well, one of the things that I will say is that I'm guilty of too is arrogance when it came to thinking that I knew everything around it and I never really properly evaluated life insurance and teaching in the professional community of other CPAs on how to further their skills and their practice. There's not a lot of emphasis talking about life insurance. So I was not very aware of this wonderful actually financial instrument.

I was actually introduced to it by another, I'll just say by someone and thought that they could benefit from insurance. And all I needed to do was get a life insurance license to do it so I could help people with the advice and experience that I have. But the challenge that I had was it didn't the way that the policies and what was recommended to design from what I understood didn't make sense for also what I would provide for clients. And so when I started to research a lot more about this concept, I came about the book and I started reading it and then I was like, oh, this is what I want to do with the policies. Can these policies do that? Now the organization that I was with really focused on only what's called using universal life policies. But the drawback of using universal life policies is that there are no contractual guarantees built into the contract. The values that the money goes in is really separated as a fund that the fund is used to buy investment products that are also exposed to the volatility of the market. So that as a base to borrow against to do anything didn't really align with me too. And that's what I started to realize. This was something that there's a lot more to look into to this concept. And that's how I came into the ascendant financial and then that's how where we are today. So a lot of it actually took some time and discovery of me who cares a lot about numbers too and then really realizing on the overall grand bigger picture of things as I've shared with you all today, is who's really controlling your money.

Awesome, Henry, thank you.

Looking at the chat box here, it seems like we have a few questions. One of them is is it just my impression or this strategy actually creates new TFSA room? Is that a good way to put it?

It's an interesting question.

I'm not really sure how to answer that question. Yeah, I would just answer it with that's.

You are creating another branch for you to put money in where the TFSA is still under the rules of the government who set this year 7,000 can go in as contribution. Whereas you get to decide if you're building another branch in your system what you want as the premium to go into your system.

So it could be 7,000, it could be 10,000, we 5,000, it could be 100,000.

Team, were there any other questions that as you guys were answering that came up that maybe we want to bring up and get answered?

We got the old life and company question again about which life company use and that's something we don't advertise. Like you can have a schedule, a call, talk to a coach and then when you get through that further than you can get into which life company they recommend you use.

Henry, if you, if you could, if you could go and maybe spend a few more minutes about deemed disposition. I feel like a lot of Canadians, we, we work really Hard. My parents included.

Right.

I'm part of an immigrant family. My parents came here. They work very hard and we build up these great estates that we don't know what they're going to be taxed, like when death occurs. Right. So maybe with your experience, if you can just go over that.

Yeah. So.

The property that you end up building and the definition of property under the income tax code is things like real estate or things like RSP or things of any of that nature.

All of that has followed rules that the government has created around them. And so as you've accumulated the money and purchased those property with and if those property increases in value higher than what you've paid for.

People think that that's yours. However, inserted into the Income Tax act have rules where that even though you are still alive, this also is deemed as decision happens in two ways. If you decide to exit the income tax system or the country of Canada or if you pass away. So on those triggering events, that's when deemed disposition can happen. And so that is where the government just has set in rules to say you have sold it even though the property has never changed hands. And they're going to declare it at the value that pretty much you've passed away at the date that you passed away at and compare it to what you've paid into it. And if that value is higher, then there's a taxable liability that is there. So under those circumstances, that's how the tax debt gets created to get paid to the government. The other aspects of estate transfers and sorry, the property rolling into the estates, that's where proper planning of what's called estate planning would come in.

Awesome, Henry, thank you. One of the questions here is can this concept be implemented with a smaller premium? Henry went over this. This doesn't just work for people with a large premium, it works with anybody. Right. And your premium in your situation is unique. So again, our team has put the number in the chat there. You can schedule a call with one of our coaches to go over your unique situation and see what premium is suitable for.

You got some really interesting comments. Not, not really encouraging it, but it's really nice to see it where I'm going to divorce my financial advisor and get my RRSPs out of jail and into IBC. I've heard most of this before, but I've simplified it, which is great. And then there was another one.

Where.

I think it was, yeah, another gentleman said, this is very insightful. I now see another option to expand my banking system. Anything that I can help expand your mind. We're just focused on.

Getting more of that money pool and taking advantage of the earning potential of that money pool that you bring in.