Use Your Own Banking System When Investing

Does this process take away any of their options? Think about it. Are they working any harder? Are they changing the cash flow? Are they taking on any risk? Are they changing their goals?

Is there really any downside to Rich becoming his own banker?

Becoming your own banker is not an either or. It's just about how we are going about funding things and financing things in our lives. And one of those things is being an investor. So I want to talk to you about one of my clients. His name is Rich. Rich is a 48 year old professional who decided to begin saving $50,000 per year. And one of his ways of accumulating wealth was to purchase rental real estate. Now Rich can choose, like every other Canadian, to save his money in someone else's bank. Or he, like all of you, attended one of our sessions just like this, learning how to build his own banking system. He can create his own warehouse of wealth. So what I want us to really show you is show how Rich decided which option is preferable for him. He has two routes that he's going to look at. After two years of saving, Rich is able to find a rental property that he feels meets his criteria. He's going to buy this rental property. Now, when it comes to renting a property and supporting the property, who's the one who actually pays for all of the expenses associated with the investment real estate? Who's paying for all these expenses? It's the tenants. Now when we look at the options and we just go back and taking a look at some of his options, while Rich can use his own cash for the down payment and the mortgage balance, saves it in someone else's bank, puts it towards a down payment and a mortgage, or he is being coached and he's walking through using becoming your own banker. He's using his own banking system. Now let's take a look at what it would look like if he decides to use his cash, his own cash, in terms of financing his own investment. Well, the purchase price in the property that he's looking at that he is buying is $300,000. Now in terms of the down payment, for that down payment, he's putting towards 60,000 in terms of down payment. So the remaining amount that needs to be financed is using a mortgage of $240,000. After he closes the deal and he has the property, he's going about finding a tenant and he's able to charge rent for 2500 for that rent in addition to that rent while you've got a mortgage to pay for that rent. Right. So that Mortgage payment. Based on the structure of that loan, 240,000 is $1,021. So if we take the difference between the gross rent less the mortgage payment is profit times 12. The total annual income on that profit is 17,700, 748. So if we kind of look at the gross cash on cash return is 29.58%. So that's the cash option. If he's taking his cash the traditional way that he's aware of and financing and investing into this property that he has. Well, what if he decides to take the route towards becoming your own banker, building his own banking system system. So he's depositing 50,000 now annually instead of someone else's bank. He's just flowing that money and depositing it into the dividend paying, participating whole life policy. Well, after two years in that policy, the cash value.

Is at 84,147. Now the death benefit on that particular policy is 913,000. And like just as mentioned before, these death benefits are tax free. So the loan amount that he's able to access is 90% of that 84,000 or 75, 7 32. Now if we revisit the same property that he's buying, which is $300,000. Well in this case, the source of where he's getting the financing to fund that down payment is now going to come from a policy loan. He's able to get 75,732, but he only needs 60,000. So he's going to access 60,000 at 6.2% simple interest. And that annually would be 3,720. Now the death benefit, when he accesses the policy loan, the cash values are used as collateral. The death benefit is the lien on the policy loan, not the property. So in this example here, Rich is the one who controls the repayment schedule. Because he's the banker, he gets to control when he wants to pay, how much per month he wants to pay. And if he decides to, not that we always recommend this, but he can decide to skip the payment if he wants to. However, his own money, that 84,147, that cash value is growing every single day because he's using the insurance company's money. And we go back to the mortgage, which is 240,000. The rent is 2,500. Mortgage payment is 1021. Annual income is 17,748 very much exactly the same asset performing areas. However, it's just the way that he did it differently and just by doing it differently, this is his gross cash on cash return, which is 477.1%. And if we look at it from the total cash value, aside from that increase, the total cash value as of year three is now also up 56,004, which is $140,000. So not only is his money not tied up, he has now available room. What else can Rich do? With more access to capital, could he not continue doing what he's doing? In this specific case, his death benefit is still is now because of how we design these policies, the death benefit increase every year is also up to $1,004,000, which is up from before, which is up 90,009, 58. So if we really look at everything altogether between comparing the first way of just financing it using cash versus becoming your own banker, being his own source of financing for funding the down payment, his objective didn't change. He still went about getting his property. But what changed is the process he used to achieve it.

Where the money is flowing and who the money is being put to work for is what was changed. So if we kind of look at all of this, is there really any downside to Rich becoming his own banker? And I will say with a very astounding no, there is no downside for rich. Sarb is going to walk us through a really good example now in terms.

Of house flipping, I love this example because I recently did the exact same thing and flipped a house and want to share this with everybody. How this family did this family, you know, just few JV partners and they love real estate. They want to build a lot of wealth using real estate. And I'm going to introduce you to the family. I call this a tale of joint venture partners. So they meet two partners, so Philip and Manish. So Philip is an engineer, age 38. Manish is a project manager. No wonder they get along so well because they're kind of in the same industry. And Manish is age 39. They both married wife. So Philip's his wife is age 39 and Manish his wife is age 36. Philip has a daughter, young daughter age three. And Manish has a son age one and a daughter age six. And this was when they actually met with me a few years ago. Their goal is investing in real estate because they want to get out of the rat race. They want to build the system of cash flow and in understanding the real estate business so that they can do this full time. Now they've been investing in real estate since 20, 2012 and most of the Investments that they've done together is as a joint venture. We have to have a good fit to work together. I keep emphasizing on that because that's really important not just for yourself, but also for us because what we're going to do together going forward is a long term basis. There's going to be awesome relationship that we're going to build together. Now both Philip and Manish, they were coachable and always learned to learn and that's what intrigued them to discover the process of becoming a banker. Because they weren't suffering with arrival syndrome. And if you must be wondering what is arrival syndrome, but it's, it's something that Nelson talks about in his book when it, when he's referring to human conditions, human behavior, one of the human conditions he talks about is arrival syndrome. He describes an individual who knows everything that there is to know in this life and him or her cannot be taught anything anymore. I'm sure you, you probably know someone suffering with stage four arrival syndrome. But Philip and Manish, they, they had no issues. They wanted to learn. So they discovered IBC a few years ago to 2016 reading Nelson's book. Did they catch things by reading? You know, some folks may like audio, some folks might like visual. So we have all the resources available whether it's audio, visual books. So for them it was Nelson's book that really resonated with them from the message standpoint. It all started with Nelson. His book is amazing. And you're all going to get a gift of Nelson's book at your becoming a banker call when you meet with an authorized infinite banking practitioner. So 2016 fat. So they had no life insurance because nobody talked to them about importance of creating this the total debt. So back in 2016 they had about a million dollars in debt, mostly bank loans on investment properties and properties were owned personally. Philip's income at that time was $120,000, Manish income 130,000. So very similar in income. Now passive cash flow from real estate holdings at that time was 20,000 per year because they had been investing in real estate since 2012 so they had some passive cash flow from the properties already. Now the goals obviously to do more real estate investments and they wanted to use different strategies flipping buy hold from cash flow. Burr I'm sure if you reached an investor, you know, one strategy doesn't fit everything. You have to, you know, look at different strategies for every property. The ultimate goal was to gain passive income cash flow and then quit the 9 to 5 job so that they can 100% work on their investments for the betterment of the family and and mostly buy back time. Right. Time. Time is the most valuable asset for everybody and we always want to find a way to buy back time so that we can truly do the things that we enjoy doing, things that we get excited and passionate about. Now here's how their IBC journey started. So you know, firstly with family protection now in a joint venture relationship.

Especially for them, they had no life insurance. So God forbid something was to happen to either one of them. The other person, there was no way he could scale the business. The bank would make all the loan because the bank lent money to both of them. And also in case something happened to either one of them, they wanted to make sure that the properties were paid off the most efficient way and the surviving spouses family can still own a share in the business and have cash flow. So immediately we started a policy on them. It was a term. Life insurance is the easiest and the most inexpensive way to get insurance on JV partners. Because JV partner could be a relationship for a fixed term, it could be a long term. In their case they were okay committing to 10 year relationship going forward. So Philip owned a million dollar policy on Manish and Manish owned a million dollar policy on Philip. They were each paying for premium for each other. 416 a year. So Manish also owns the same policy. Manish had a little bit less premiums because Philip had a little bit better lifestyle and the insurance company gave him a little bit preferred rates. So one premium is 416, the other is 386. But it's pretty close. Now if Philip dies or graduates, Manish will get a million dollars tax free and he will use the money to pay Philip's share of real estate to Philip's wife and then keep the properties or they can use the money to pay off the debts and Philip's wife can own, own the shares in the property and continue working with Manish if they, if she wanted to. And she'll have the cash flow and the appreciation. The properties going forward is whatever they wanted to set. At that time they had options available and vice versa for Philip. Also no banking system. Now their IBC banking system started in 2016. The total premiums so 25,000 was for Philip and 25,000 for Minish. A total premium. Two of them was $50,000 because that's what resonated with their cash flow and that was comfortable amount for them to get started. But. But now as of today they have more than just one policy and they're putting a lot more than just 50k per year because again, I'm repeating myself. Isn't it true that all your money is going through the books of someone else's bank? Let's prioritize flowing that money through our banking system and radically improve the efficiency of our finances going forward. It's all about rethinking or thinking and taking action. Now when you have readily available pool of capital to access, opportunities will come find you. Quote by Arvin Nelson Ash we believe in it because we are seeing all that because we practice what we teach. And I started my journey of IBC also back in 2015 and since 2015 in my family I've added a lot more policies. Started with one policy, now we have more than 16 policies and now the opportunities are coming because our system is well capitalized and we can capitalize on opportunities. And this applies to everybody, not just me. I'm just sharing my example but every client practicing this experiences it now. Feb 22 so this, this Feb of this year is when they did the house flip. So the property that they purchased, it's a condo property in Edmonton for $160,000. Yes, most folks in Toronto can't buy a garage for $160,000 but in Edmonton, yes we can still buy properties for $160,000. It was a two bedroom two bathroom condo with one outside parking and one heated parking or underground parking in Edmonton. Now the renovation work, so it needed some repair work, painting, some cabinetry had to be changed, carpets had to be changed, stove and dishwasher had to be changed. So the overall renovation work required was about $20,000 and it take them about three to four months to complete the renovation. So they had access to capital in their policies. So the total Capital required was $180,000 which was the cost of buying the condo plus the renovation and plus a little bit of closing cost. Now after the renovation, working with a investor with a real estate advisor, real estate professional, they estimated the fair market value for the condo will be between 215 to 230,000 dol. So total cash value in the policy. So as of this year, early this year, the total cash value is what, $313,000. Because they've been capitalizing this system since 2016, the policy loan that they can access which is 90% of cash value is 281,700. So that's the total amount that they could access. But they only needed $180,000 for this particular project. So they had More than enough money to get from the policy. And that's exactly what they did. Initiated policy loan, exactly how I walked you through in the car financing example. No questions get asked. And the money showed up in 5% business days. Up to $70,000 is what gets deposited electronically. If you are accessing more than $70,000, the difference between anything above 70 to what you want, that shows up in check. The insurance company can only electronically fund or deposit about $70,000. Everything above that shows up as a check at your mailing address. So daily cash value growth as of today or this year, the daily cash value growth is $54 a day. Again, how do I know this number? Being the advisor for them, I can check the number today, I can check the number the very next day. The difference is their daily growth. That is what their cash is growing every day in 2022. So $54 a day multiplied by 30 days. So that's 1620amonth, which is the monthly cash growth. And again, I'm just breaking it down to monthly basis because it's easy to understand. We all can think and relate with what's happening on monthly basis. So policy loan was $180,000. The daily growth was $54 a day, which is 1620 per month in monthly growth of cash value. Policy loan interest. So as of today, the interest rate with insurance company is 6.2% simple interest. When I got started in this business, the interest rates were a little bit higher. It bothered me that interest rates has come down with the insurance company because I'm not thinking in terms of rate. I'm thinking in terms of where am I getting money from when I pay back the money, who is getting the money, who is putting this money to work and for whose benefit. The rate is for our benefit. So stronger the rate, the better it is for our profits. Now, daily interest on policy loan. So they initiated $180,000. So at 6.2% divided by 365, the daily interest is $30.57. If you do that on a monthly basis, the interest accrued is 917. And they chose to pay back what they want to pay back. Interest, principal, principal and interest. They are the banker. But I just want to show you how awesome it is. They're growing their wealth by $54 and they're paying insurance company $30. They're way ahead financially. But this $30 is also going to get them ahead financially and the whole business because that interest becomes profit for the business that we're going to call on together now using policy loan, they own the condo free and clear because the lien for that loan was the future debt self the death benefit. When you borrow money from the bank to buy investments, the property that you buying using the bank is used as collateral. For them, the collateral was the cash value. If you borrow money from the bank, the property is a collateral. If you borrow money from the bank, the lien for that loan is your income. Whereas for them the lien for the loan from the insurance company is future debt cell. So when they took that money and they bought that condo, they owned that condo free and clear and that loan didn't show up anywhere on credit report. They have hundred percent control on the repayment terms of the loan, principal and interest. They own the transaction, they're the banker. Whereas if you if they would have done the same thing with the bank, they had to qualify, they had to do all the paperwork and they had no control on the transaction. So thinking long range, which they have, they've been capitalizing since 2016 and 2022 is where they're able to do all this. Going forward, it's just going to get better. But they choose to service just the interest only for now. It's their prerogative. So here are their options. After the renovation is complete and if you have flipped a property, you can relate with exactly what the options are. So they can flip it if they get the right price. So they were estimating about $230,000 in fair market value. So if they get the right price on the condo, they can flip it, they can sell it, they don't have to go get the approval from the bank or see what the outstanding penalty is going to be. They own the debt 100%, they can flip it at any time they want. Or if they don't get the right price, they can actually use it as a short term rental. Maybe Airbnb, maybe just a short term tenant rental, maybe a long term rental. It's what they want. Because they are in 100% control, they can delay flipping until they get the right price. Now if they flip it, they get the right price. Awesome. They made profit, they're going to pay back policy loan, they're going to pay back interest, they'll have more profit, maybe potential to flow more money through more future policies. But let's assume that they didn't flip it, they didn't get the right price. And let's analyze the short term rental, which is the delay in flipping now monthly rent so they can rent it for sixteen Hundred dollars per month. If they choose to do so, that area will support this rent easily. The condo fee, property tax combined per month is $300 a month. The tenant will pay for the monthly rent which is 1600 bucks per month. And the condo fee and property tax out of that cash flow will be paid by them to the municipality and the condo board. Now the interest payment to the insurance company is 917 per month. So $1600 comes in as rent. Condo fee is 300, interest payment is 917. So money which is profit minus the fees and taxes, minus the interest. Insurance company, they still have 383 per month as gross profit and they own the condo free and clear. Cash value increase is 1620 because policy loan never interrupted the cash flow. So total increase in their real net worth is this net gain from the cash flow 383 plus the growth in cash value which is 1620. So every payment that comes in for the family, 1600 bucks per month after paying everybody else.

The growth in cash or cash value is $2003 per month. And the cash value growth is tax free. So they have opportunity now to maybe access more money for other things that'll come up for them. Maybe a little bit of condo maintenance, whatever they need, the money is already there to accomplish more goals for themselves. So for every sixteen hundred dollars a month that they're getting in for rent, the net worth increases by $2003 per month. That's an opportunity for them to re to use more money for more things. 1600 coming back. So if I get 1600 from you as a loan repayment and I write you a check for 2000, how many times would you give me the $1600 a month now as a loan repayment? Probably all day long and twice on Sundays. Right now here's the unseen more opportunity on the same property by becoming the banker. Because they own the condo free and clear, a policy loan is private. Nobody knows that they have a loan outstanding with the insurance company. They can actually go to the bank if they wanted to and register a home equity line of credit on the property. Because the condo is zone free and clear. Can they also use HELOC to perhaps buy another property? The answer is yes. So now they're able to scale their real estate portfolio by keeping things private. It all started with thinking long range being the banker taking a policy loan. If they can flip it, great. If they do a long term hold on the property, they own the property free and clear. They can maybe use banks money by reducing A HELOC on the property now and buy another property, maybe do another cash flow on the property, another flip on the property. So now they're multiplying the family wealth. But it all started with that education that they cut back in 2016. Now, if they sell the condo, can they pay back the policy loan immediately without penalty? Yes. But if they sell the condo and the loan is by the bank, there may be a penalty there. Now can they re access policy loans to use for next investments? Absolutely. Absolutely yes. Anything that you repay, you don't just get to reuse what you repaid. But more than that, because your cash in the policy just kept increasing, freezing every single day. So using the process of becoming a banker, they can technically now own two properties. If that's all they did. Two properties, two assets, one using insurance company's money, the other using bank's money. And they have 2 cash flow from both properties. They have tax deduction on interest payments. Because if you are borrowing money from the insurance company to make a taxable gain on investments, you can certainly write off the interest that insurance company also charges on the policy loan. And here's the most fun part. They did all that by never interrupting the growth of their own capital because their cash and the policy kept growing every single day tax free. And in addition to that, their death benefit kept increasing every year going forward. So if the unlikely happen that meaning that do any of them leave any indebtedness behind to family or joint venture partner, the answer is no. Because that benefit will extinguish any loans on policy loans or even the loan on the HELOC that they had to take to buy another property. Because there's more than enough death benefit to cover both. And there's more than enough death benefit to be left behind for surviving family. Can they use policy loan in future for retirement? Absolutely yes. As they are borrowing money by becoming their own banker to build the assets today that's going to help them free up themselves from 9 to 5 job, the policy still is growing every single day that can be used and they can tap into that policy in future for tax free retirement. No different than how Myra and Dylan did. Does this process take away any of their options? Think about it. Are they working any harder? Are they changing the cash flow? Are they taking on any risk? Are they changing their goals? None of that. All they're changing is the process to get to their objectives. In fact, they're making everything much efficient going forward. Now we got another investor example. And if you like what you see so far, you're going to love what Henry's going to walk you through.

We just went through some really awesome real estate examples. Now let's take a look at what it would be like if we just invested money into traditional financial accounts that you may be all already aware of. What I'm going to share and show you is how you can improve your outcomes by not focusing on what you are going to buy in life going forward. Instead really just focus on how you are going to go about buying it going forward. I want you to meet one of my clients, Corey. Now Corey, he's age 38, he's a full time investor and he also gets really excited to earn a rate of return of 20%. So whenever he has an objective to deploy and invest his money, he's always looking to get the maximum rate of return. In his case, he gets really excited when that rate of return is over 20%. So when he met with me, I used 20% as an example to show what it would look like if all he did was change how he was going about investing his money in that same investment, which is what I'm going to share with all of you today. Now Corey, when he came to this session, just like how you are attending this session and after reading Nelson's book becoming your own banker, he was really honest with me and he said he's like, Henry, I understand the long term benefits of IBC and I see that I've got to capitalize my system. I love it, I want to do it. I'm just struggling with understanding the short term benefits because I see that once I put my premium deposit in, even though I can access the money immediately, I don't have access to the full amount dollar for dollar in the first few years because I have to capitalize the banking system and build it up to a point where I can do all the wonderful things where you're sharing and what you're all learning about today. Now I told Corey, I understand you probably feel that since you aren't getting full access to your money that you've deposited in, it may feel like a compromise. So I said to Corey, well one of the things I do want to share is that there's no such thing as instant gratification. Things that are worth considering are going to take some time. So I said to him, would it be okay if I share with you that despite you not getting full access to your money in the first year, you're still going to come out ahead? And he's like, for sure help Me understand that. So the example you are all going to see here is actually Corey's own example, which the objective of Corey is to invest money. So let's meet Corey's objective now, before we dive into it, we have to understand the problem is not the problem. The problem is how we think about the problem. The problem is not the 20% rate of return. The problem is how do we go about funding the investment for the 20% rate of return? What can we change in terms of the process or the way we fund the investment for that 20% rate of return? So let's improve the outcome by not focusing on what you are going to buy in life going forward, but instead let's focus on how you are going to go about buying it going forward. And everything that we do in life financially is a measure against how someone else is doing it. Everything is comparable, right? If you're not doing good, then compared to what? If you are doing good, then compared to what? Everything is comparable. And so is the process of banking that's also comparable. So let's see how we can enhance the return for Corey by just changing his process of banking investing. We're not going to change his objective, we're just going to change his process to accomplish his objective. And just as a reminder, what's his objective? His objective is to continue buying assets that produce a 20% rate of return. So let's take a look at his process of investing what he's currently doing. And you may also be doing this already. Either Corey uses his own cash, which is method one. So if you find something which is worth investing in to earn the 20%, then you pile up that cash in someone else's bank. And for him, he wants to use that cash to accomplish the objective. The other way for Corey to fund the investment is through a heloc, because Corey has a principal residence and he also has access to money through his HELOC when he accesses the HELOC, that is other people's money, otherwise known as OPM, at someone else's bank at 3%. So these are the two methods that he's been using. And so let's see what he's been doing presently. And we're going to compare these two methods with what we can be doing going forward when we are using the process of becoming your own banker. And once you see the comparison, and then it'll connect with you and you'll see most likely the benefits of doing it this way. Let's take a look at method one. So method one the math and concept is fairly straightforward. Using his own cash. So if he takes the 20,000 of his own money, he invests it into something that's going to produce the 20% rate of return over the year, he's going to earn $4,000 in his investment. That's pretty straightforward.

So that gain is $4,000. Let's look at method two. He gets to borrow $20,000 as a line of credit from the bank, which is his using his principal residence as the collateral. So now he's using someone else's money, in this case the HELOC or the home equity line of credit. Now he's using the bank's money to invest into it to get the 20% rate of return. He still earns $4,000, but since he's using the bank's money, he's paying the bank back the interest. So the cost of borrowing it is $600. So his net gain in this transaction is $3,400, because that's $4,000 from the gain, minus $600 for the interest. Now, whether he selects method one, which is using his own cash for the 4,000, or he selects method two, which is using someone else's money, I think we can all agree you did good. Well, he did pretty good. And that's what he's normally accustomed to when he's deploying his money for an investment. So I said to him, let's make it even better for you by changing your process. Again, I'm not changing the objective of the 20% rate of return. And I'm also not going to change the use of his cash flow of using $20,000. I'm just going to change one thing, and that one thing I'm going to change is the process. I'm just going to change the way he funded the investment. So let's dive into this. Let's see how IBC can make things better for him. And IBC stands for the infinite banking concept. So now he takes his $20,000 of his own money and he flows it into his banking system to start capitalizing it. Now, the 20,000 is a deposit that goes in a form of premium for life insurance. Now, immediately at his age, where the policy is designed based on his objectives, his starting death benefit is going to be $400,000. Now let's compare it. Immediately going back to method one, if he takes his $20,000 to buy investment, he's accomplished the objective of buying the investment, but he doesn't have a death benefit. I mean, in case anything happens to him. And if he becomes an angel, his family will get generally the $20,000 plus the profit of 4,000 from that investment return. That's all what he's going to leave behind for his family when he uses IBC. And since he's taken $20,000, he uses it and starts a properly designed policy. He immediately created protection for his family of $400,000 as a tax free starting death benefit, meaning upon his death his family is going to get 20 times that money compared to what he first deposited. And from being an authorized infinite banking practitioner using the way we design the policies, that death benefit is going to increase every year going forward. And that's just what when he passes away. Let's talk about while he's alive. Well, immediately when he takes his capital funds it with the 20,000, he's going to get access to cash values of 10,333. And in a properly designed policy today, within the first month, that's what his cash values are going to be in his policy. Now, while he flowed the 20,000 into his policy, his money also isn't tied up like traditional investment vehicles. He can get access to those cash values. Not only can he access the cash values, but he's going to have a daily cash growth in the policy because the insurance company has to fulfill a contractual guarantee. And so the daily cash growth in his particular policy is $8 per day. And that's just happening in the first year. And the contractual guarantee is that by age 100, his cash values have to grow to match his death benefit. So every single day as Corey ages, he's getting $8 per day and his cash values keep increasing. And you know what the best part is? The best part is that's only just the first year and it's only going to get better going forward. But again, we're just going to focus on the first year. So if his cash values in the policy are 10,333 immediately, while the amount of cash value he can access is $9,330 $300 as a loan from the insurance company, that would be the loan available to him. Now the loan available is 90% of the cash values, which is 9,300. So immediately he can borrow the money right away. Now, with this particular insurance company that he has the policy with, there is an interest rate on that policy loan and the interest rate is 6.2% annually as simple interest. Now I'm going to show you what he's going to do. And like I said, he's going to change his process. He's just going to change the way he buys the investment. So he took his money, which is 20,000, and he floated into starting a properly designed policy. Step three, he's going to borrow from his policy to go buy the investment. So let's see if he comes out ahead using that process versus the two methods before of using cash or using the heloc. So method three, if I just kind of remind all of you, Corey's concern was that he was only able to get access to 9,300 compared to his $20,000. So he uses the policy loan of 9,300 to invest at 20%. Now, when you initiate the policy, that money comes from the insurance company. It's not your money, it's the insurance company's money. So your money stays in the policy and it continues to grow. In his case, he never interrupted the growth of his money. His money stays growing at $8 per day in the very first year when he accesses the loan. The loan in his policy never interrupts the daily growth in his cash value. So he's using the insurance company's money right now, not his, to invest at 20%. To get the 20%. So the 9,300. At 20% over one year, he's going to make $1,860 on that investment by using the insurance company's money. And since he's used the insurance Money, who charges 6.2%, that interest is over a year is going to be $576. So his net profit from the investment by using the insurance company's money is 1,008 60 minus 576. So his total gain in the investment is 1,800. 284. If you look at. Oh, sorry. So if you look at the first option, which it was $4,000 in cash, and if you look at the HELOC, he made 3,400. And now you look at IBC, he made 1284. And you're probably thinking, Henry, as a CPACA, something doesn't look right. You must do math differently than me. I thought you mentioned that this is going to be better for him. But it seems like he's behind compared to when he's using his cash or when he's using a heloc. And I'm going to tell you, you are right. I do do math differently. I know it's natural that your mind focuses on numbers that are in front of you and it doesn't focus on the process. So let's Go back to when he took that loan from the insurance company to go buy the investment. How much of his own cash stopped growing in the policy? The answer is none of it. Because while he used the insurance company's money to accomplish the objective of buying the investment, his own money stayed in the policy and it kept growing. So let's add that to his overall access to capital at the end of the year. His profit is not just the 1284 in what he made in the investment, but also the growth that he had in the policy. So let's take a look at it all together, what all of those methods look like when it's put together in the same screen. So let's kind of take a look at it. So first he took his cash of $20,000. He's invested it for 4,000. What I want to highlight is whose money did he use? He used his own money, his own capital. Now, once he used that cash, now that money is tied up and the outcome on that was $4,000. The other way, which was method two that I want us to look at, is the HELOC. So in the HELOC, he still earns the 20%, but after paying the interest to the bank, his profit is 3400. But this capital that he used is the bank's money. So the final outcome, if he uses his cash, was 4,000. What he uses from the HELOC is 3,400. And that's where he stood before. Now let's take a look at option three, which is using IBC. So he took $20,000 and started a policy. And when he took the policy loan to put into the investment, he made $1,284. But the money that he used was from the insurance company. His money was still growing at $8 per day. So as he used the insurance company money to make 1284, he also ended up making 200920 in the daily growth of his policy over the year. Because the policy loan didn't interrupt the growth of his money. It was still staying there and it kept growing. So in one year, using his 20,000, he made 1284 in the investment and 2920 in the policy. So combined from the capital that he used of the 20,000, he made 4,000 tool for and just for reference, he is just getting started with the policy in the first year. And as he allows time to progress while capitalizing his banking system, his loan access is also going to be way more than his premium in the future. That increasing access to the loan isn't going to require him to apply for more money. It'll be just there for him. All without having to have to give those nosy creditors private and sensitive information about your income, your assets and everything else, including the kitchen sink. When you apply for money with a HELOC. So if you compare using cash, his profit is $4,000. If using a HELOC, his profit was 3,400 and using IBC is 4,200. And this is when Corey couldn't believe what he saw because all he was focusing on were just the numbers. When he considered the process, he created that tailwind of 200920 for himself. When he flowed his money through his policy first, because of flowing the money this way, he never interrupted the growth of his money. This daily growth just kept pushing him further and further and further ahead financially. If he follows this path, the outcome for the years down the road only get better. And you thought this was all and there's actually more to it now. Normally when people look at numbers, they often forget that we live in Canada and they forget about taxes. The CRA wants a bite of what you do and to tax you on the income that you've earned. Well, when Corey uses method one or method two, when he used his cash to buy the investment, the taxable amount would be $4,000, which would be included into his income, bumping him up into a higher tax bracket to pay more taxes. When he uses a HELOC, the taxable amount would be $3,400. Very similar that would be added into his income for him to pay more tax. Well, when he flows his money to his policy and he uses the policy loan to buy the investment, the only taxable portion that is exposed to him is this 1284. That growth is the only portion that he has to pay tax on his own growth of capital. The 200920 that's happening in the policy, he never has to pay any taxes on it because that money is growing tax free. So if you compare all three methods, by changing the way and how he funded the investment, Corey didn't just make money as compared to method one and method two, but he also ended up paying less taxes legally while being legally compliant with the cra. And this is just how things look when it looks differently when you do it. You know what, I just wanted to share that if Corey could do it, so could you. And what Corey needed though, was just a coach to help open and expand his mind. And we're here to coach him on this process going forward, and also you. And you know, what I just wanted to say is you can't get a better rate of return investing into anything without first controlling the financing function of that transaction. Because what really resonated with me from my own personal experience was when I first was introduced to this process, this is what I needed to learn about when I got so frustrated that the bank made more money on my parents money, my father's money, instead of what could be done by myself. And you can get further ahead from creating the financial tailwind by implementing becoming your own banker in your life, personally and or corporately. For every transaction that you have the need for use of money, someone has to perform the function called banking for you. And that someone should be you.