What Happens When You Use Infinite Banking vs. When You Don't (Real Numbers)

Money flows. Once you begin to observe the pattern of flow, you start seeing something that most people miss. Money is always being stored somewhere and borrowed from somewhere. You've got car payments, credit card payments, loan payments. You're paying cash for things. You're permanently transferring it away, and you don't escape this by earning more. Is not about chasing returns or predicting markets. It's, it's not about finding some new investment. It's really about how money flows through your life. And as I walk through this, I want you to constantly ask yourself just one question: where is my money flowing? Definitely made the right decision to be here. And what's interesting, every single time that I share an introduction to the Infinite Banking Concept, which I've been doing for 19 years, I always feel compelled to share what's most current, what's most recent, because the more you see the Infinite Banking Concept, the more you'll see you didn't see. And so, I'm very glad you're here. What I want to share, and I talk about this each time, Tonight is not about chasing returns or predicting markets. It's not about finding some new investment. It's really about something that's far more fundamental. It's really about how money flows through your life. And so, I just want you to pause and I want you to think about that phrase for a second. Money flows. Because when money comes in, to your life, regardless of the source, it, it doesn't sit still, right? The money moves. It moves from your employer to you. It moves from your business to you, from you to taxes, which I'm sure everybody's thrilled with, from you to lenders. It moves from you to credit cards, from you to investments, from you to expenses. It's constantly moving. And the truth is that most people spend their entire lives focused on earning more of it without ever stepping back to examine the path that that money is traveling. And so I just want to ask everybody who's with us, let me ask you something really simple. Just notice your honest answer, because once you begin to observe the pattern of flow, you start seeing something that most people miss. You are financing everything in your life. Even when you pay cash, you're still working with borrowed money. You're financing your homes, your cars, your lifestyle, your business, your opportunities. Money is always being stored somewhere and borrowed from somewhere. So the question is never whether financing is happening in your life. The only real question is who benefits from the flow. And this is where people really start to feel something shift because you can work hard, you can earn well, you can invest wisely. But if the flow of money in your life is structured in a way that extracts value instead of building it, then you're always going to feel like something's just slightly off and you can't quite put your finger on it. So tonight we're going to look at the structure of your financial life through one lens. Where does your money reside between the time you earn it and the time you use it? And what happens to it while it resides there? And by the end of our time together, you're— I, I'm telling you, you're clearly going to see this, this invisible pattern that most people operate inside of and why earning more doesn't fix a flawed flow and how some individuals restructure the flow so that money works differently in their life. And you don't have to agree with everything I share tonight. Just be very observant, because once you begin to watch how money actually moves, you can't unsee it. And when you can clearly see the flow, you can decide whether you want to keep it the way it is or whether or not you want to change it. And so take a deep breath and just set any distractions aside. And as I walk through this, I want you to constantly ask yourself just one question, just one. Where is my money flowing? Isn't that good? This is definitely a fundamental belief of mine. If people give you the blessing of their attention, then you owe them clarity. And that's definitely what I'm going to bring for everybody tonight. And when you envision this money flow in your life where you've got a source or maybe multiple sources of income, those sources are taxed, you pay expenses, you take care of servicing debt, maybe you set aside some money in some form of investment, and then it's right back to income, and you repeat that cycle all over again. And more income doesn't fix a broken flow. It's more income inside of a flawed structure. All that it's doing is just accelerating the leak. And the moment that money hits your account, does it pause under your control or does it pass through? Because the overwhelming majority of people that we're blessed to connect with It's a pass-through, and the money resides on the books of someone else's bank. And so I want to, I want to take a moment. I want to invite you into a story. We're going to talk about two farmers. Now, I want you to replace this with whatever profession you do to earn a living. If it's two lawyers, two different futures. If it's two doctors, two different futures. Two mechanics, two bankers, whomever it is. In this case, we're going to talk about Ray and Jake. And Ray and Jake are two farmers, but they have created two very different futures. They're next-door neighbors, and so they have the very same amount of land that they farm. So they're dealing with the same amount of work, the same weather, but two very different futures. Let's look at and examine Ray for a moment. So Ray earns He spends, he borrows, he repays, and he starts all over again. All of that activity involves a permanent transfer of money away from him. When we contrast that with Jake, Jake earns, he stores, he finances, he recaptures, and he builds. There's a big distinction. And I want to draw your attention to 4 roles of money. As I go into this story about Ray and Jake, you've got the earner, the taxpayer, the borrower, and the banker, which roles you're tired of playing. One of the many things that my late mentor, R. Nelson Nash, the developer, the pioneer of the infinite banking concept, that he would say is that your money must reside somewhere. He referred to that as a fundamental truth. Now, if we take a look at Ray for a moment, Ray is setting aside $50,000 of surplus, surplus income from the farming operation, and he's storing that on the books of someone else's bank in the form of savings. That bank is paying Ray interest in exchange for him having his money reside there. Now, he is setting aside that same $50,000 each and every year. We just took a 10-year snapshot. And you can see at the end of that 10th year, he's piled up $624,000 on the books of someone else's bank. Now, along the way, if Ray needed to access any of that money, he would have to deplete the savings by the amount that he needed to access, and then he would have to replenish the savings, but he loses all of the compounding factor on the money that he withdrew. He can't spend it again. He can't earn interest on it again. It's a permanent transfer of money away from him, his family, and the farm. Now you can see how much money resides in that savings account at year 10, year 15, year 20, et cetera. Now, when we contrast that with Jake, and Jake decided that he wanted to implement the infinite banking concept as it relates to controlling how he finances the things that his family needs, that his farm operation needs. He's working with the very same $50,000 on an annual basis. The difference is where that $50,000 resides. What Jake did is he took that $50,000 and paid premium on a dividend-paying whole life insurance contract. That contract immediately begins to pile up cash value. That contract immediately has a permanent death benefit that is passed on income tax-free. Jake puts the very same amount of money in. He changed where it resided. We examine where Jake is at the end of the 10th year, and not only does he have $621,000 in cash value that he can borrow against on demand on his terms, I say that again, on demand, on his terms. He also has an ever-increasing permanent death benefit. When Jake needs access to money for things like farming equipment, supplies, new vehicles for the family, Jake is borrowing against the ever-increasing cash value of the policy, and the lien for the loan balance is on the death benefit. Not what he used the proceeds to buy. So if he purchases a, a new vehicle, a lien is placed on the death benefit of the policy for the loan balance, not the vehicle. The cash value in the policy continues piling up on a daily basis, uninterrupted by the loan that Jake requested from the life insurance company. He didn't apply for the loan, he requested it. No income verification, no No credit checks, no lengthy nosy credit applications. The insurance company asks him 2 questions: would you like us to electronically deposit the loan proceeds into your bank account, or should we just mail you a check? That puts Jake in a position of total and absolute control. He has liquidity without liquidation. He is not diminishing the cash value inside that policy. When he requests a loan from the life insurance company. And every year that that life insurance company declares a dividend, Jake is a co-owner of that life insurance company. So he participates in the divisible surplus, the profit generated by that company. That is very distinct from Ray. And when we fast forward into the future 10 years, this is how Ray is feeling and And this is how Jake is feeling. I just want you to take a moment and quietly read this to yourself and just notice how you feel while you're reading it. Same work effort, same crop, same weather. The difference is who controlled the banking function in their life. And today you get to decide which future feels more aligned with how you want to live. The truth is that when you don't control the flow, you work harder for the very same outcome. I want you to quietly ask yourself, how does that make you feel? What portion of your net worth is completely shielded from any risk of loss or taxation? Think about it. Of all your assets, if you were to take a look at your personal balance sheet, if you were to take a look at your corporate balance sheet, if you're an entrepreneur and you own a business or maybe more than one business, I want you to examine all of your assets. What percentage can be converted into cash today without reducing the asset's value and without triggering a taxable event? That's the caveat. Take a look at that personal and business balance sheet. Take a look at all the assets and what percentage of them can be converted into cash today. The only caveat is that you cannot reduce the asset's value and you cannot trigger a taxable event. This one really, I'm quite shocked at how many people have not been able to take advantage of high-caliber opportunities that tracked them down because they didn't have capital that was readily accessible on demand on their terms. Has that ever happened to you? Tonight, you're going to see the invisible flow pattern that I described earlier, the structural shift and the control decision. When you think of every source of income—W-2, T-4, interest, dividends, whatever that source of income, investment income—all of those sources of income eventually flow right into the same system, the banking system. And over the course of your lifetime, you will finance somewhere between $500,000 to $2 million plus The only question is, through whose system? Major expenses over the course of our lives, we know that they're inevitable. You've got property, cars, business expenses, lifestyle, retirement. And how are all these things financed? You pay cash, you borrow, you lease, you swipe the credit card. Every single one of these financing options moves money through someone else's banking system. Financing over the course of your lifetime is going to be extensive and it's not optional. Control is. And when I examine two different financing patterns, I see an external financing pattern and an internal financing pattern. We either apply to access someone else's capital or we simply request it. We seek approval through a financing process, or we have ownership. We abide by the terms that are set by the lender, or we control the terms, we control the repayment schedule. Interest leaves or interest feeds. We have to requalify every single time, or we get to use it again and again. I want you to take a moment and just notice how those two patterns feel different. You're doing all the work and everyone else is getting all the money. You're earning income, you're taxed, you finance everything that you buy, your money flows onto the books of someone else's bank, and you repeat that cycle. The traditional model— we were trained into that model from a very early age. We apply, we get approved, we make payments, we transfer interest permanently out of our lives financially. And when it's done, the transaction's over. The interest enriched the lender, not us. And when we look at the internal model, I want you to imagine this different structure. Instead of interrupting your capital, you borrow against it. Instead of applying, you simply request. And instead of interest permanently leaving, it supports the economics of your own capital system. And over one transaction, just one, The difference might not feel that dramatic, but over my 19 years of implementing this process and controlling how I finance the things that I need throughout my lifetime, it became structural. And I stress test everything. If we examine a market downturn, a disruption to income, uh, credit tightening, business disruption, which system gives you more control? The external financing or the internal financing? And under ideal conditions, both systems, both of them function. But under stress, which one gives you more control? One where you have to qualify or one where the capital's already positioned and it's yours and it can't be repossessed and it can't lose value? This isn't about beating a bank rate. This is about resilience. Apply or request, which one is it? And tonight, this is not about dividend-paying whole life insurance policy or ideally a system of policies. This is about reclaiming the financing function in your life because from that very place, you can set about achieving all the objectives that you have that require money to to achieve, and it's done gradually and incrementally over a period of time. And if you had operated an internal financing system for the last 19 years like I have, what would your capital position look like today? What would be different today than 19 years ago if you had operated your own internal financing system like I have? I hear people say all the time, I wish I would've discovered this, insert the a number of years, 5 years ago, 10 years ago, 15 years ago. Well, you can't say that 15 years from now. We definitely can't change the past, but we can absolutely change the next 20 years. And that's what tonight is about. Another fundamental truth: when you don't control the flow, the system controls you. And the people that we most love to serve are people that prefer to be in a position of control as it relates to how they finance the things that they need throughout the course of their lifetime, which can certainly include investments, vehicles, property, anything that you would otherwise pay cash, lease, finance, or swipe the credit card for. This money trap is very common in people's lives. You've got cash flow leaks everywhere, everywhere. You've got a leaky bucket where money is constantly flowing away from you, or you've got a closed loop system where you've got capital flowing back to the family, flowing back to the business. Replenish access and you never interrupt the daily growth of your capital ever. I want you to think about this for a moment. Just take a quiet moment. And then if you're agreeable, what is the total amount that you've spent on vehicles up to this point in your lifetime? And the reason I use vehicles is because people will spend more money financing vehicles over the course of their lifetime than they'll ever save for retirement. And And so where does all that money reside today from the vehicles that you purchased? If you said on the books of someone else's bank, you're absolutely right. And the financial posture that you're in presently in your life, you've got car payments, credit card payments, loan payments, you're paying cash for things. And once paid, where does all that money reside? You're permanently transferring it away. And then we introduce tax. This is what the average family pays of their gross household income in taxes. And you don't escape this by earning more. This guy just got his books back from his accountant and discovered how much tax he's going to pay. Not a very happy camper. Have you ever felt this way when you did your tax return? So I want you to examine all of your existing assets and just ask yourself, which of my assets are a sitting duck for future tax hikes, especially when you're in tax-qualified plans because they're tax-qualified and you're on the government's radar because you file a tax return every year. There's a cost of inaction in your life with anything. But as it relates to this, it's significant. It's lost compounding control and lost optionality. You take away these three things in your life and your stress levels go up. Not down. But when you get the bankers out of your life, what a peaceful, stress-free way of life it is. This way of thinking— credit to my late mentor, the late R. Nelson Nash. He wrote the book titled Becoming Your Own Banker. It takes a few hours to read. It's less than 92 pages of reading. And this book changed my life in July of 2008. If you do not own this book, you have an opportunity Add it to your wealth-building library. You'll be glad you did. And if you haven't seen the documentary film that I had commissioned on my late mentor, you can view it at nelsonnashfilm.com. It's nelsonnashfilm.com. It's a 1-hour documentary, and you'll get a deeper glimpse into what a joy it was to know this man. And I'm often reminded of one of the very first things that I heard him say: until you understand the problem, The solution just won't matter to you. And that's why I began tonight walking through the problem, so that the solution will actually matter. That's the significance. Here's the structural shift. We build a pool of capital that grows daily, and we finance from that pool instead of from banks. And we keep that interest, we recapture it inside of our system. And it shouldn't surprise you that this is the reason why banks win. Banks win because they control capital. You've heard the golden rule: whomever has the gold makes all the rules. And so put yourself in a position of total and absolute control as it relates to how you finance the things that you need throughout your lifetime, and a major structural shift occurs. And banks, given that they control where capital resides, I would encourage all of you, if you haven't had occasion, to hop onto either ChatGPT or check in with Uncle Google and ask for a definition of bank-owned life insurance. BOLI, B-O-L-I, bank-owned life insurance. Banks, conventional banks store a significant portion of tier 1 assets capital in the form of dividend-paying whole life insurance contracts. And if, can we agree, if we just mirror what the banks do, we're going to do okay? Absolutely. And at the you and me level, which is where the banking function should be held, there is a specific contract designed for this. And you, as the contract owner, are in a position of total and absolute control. And what a wonderful place to be. And when you utilize this contract, or ideally a system of contracts, as a tool to implement a process, everything changes. This structure allows you access capital on demand, on your terms, without reducing the asset's value. And what without triggering a taxable event. Cash value begins piling up daily from inception, and the cash value is contractually guaranteed to match the ever-increasing death benefit by age 100 of the life insured in Canada and age 121 of the life insured in America. What that means in simplicity is that every single day that the life insured is aging, the cash value is rising. And once a year, when the life insurance company declares a dividend, it's contractually guaranteed to be paid. It cannot be repossessed, and it cannot lose value ever. And so logically, if you know that you can contribute almost unlimited sums, you've got all of the attributes that I just described. How much of your capital do you not want residing there? Because from that very place, you can achieve all those other financial objectives that you've identified in your life without interrupting the daily growth of your capital. That is total and absolute control. And when you request a policy loan from the life insurance company— request, not apply— you control the repayment schedule. I say that again, you control the repayment schedule. Isn't that good? And then the tax treatment, you pay no tax on the buildup. You're chunking those dividends right back into the policy on an annual basis. You're not triggering a taxable event. The death benefit passes income tax-free. Isn't that good? Now, if your brain is saying, this sounds too good to be true, or I need to think about it, I'll do this later, I need to talk to my spouse. Those are normal thoughts, very normal thoughts, and that's why clarity matters. This is not about insurance. It's about controlling the banking function as it relates to your needs. And your needs for finance are going to be extensive over the course of your lifetime and over the course of the lifetimes of every future generation that comes after you. There are no exceptions. That's why the next step is not a decision. Do I want to implement this process or not? It's a private conversation. And I know this because I lived it. I'll tell you, I started exactly where you are, and structure changed my life. And that's why I do this. I want to share something with all of you. I was born and raised in a small mining and forestry community in in Timmins, Ontario, Canada. And now I spend my time in both Canada and the United States. I'm on a green card path in the United States. And when that time comes, we'll maintain dual citizenship. And growing up as a toddler in the early 1980s, does anybody remember on this webinar what happened to interest rates in the early 1980s? Skyrocketed, absolutely skyrocketed. And if you were a prime customer of the bank, which I have never met anybody who's a prime customer of the bank, you're always prime plus. My parents came this close to their home being foreclosed on, and my sister and I spectated while my parents argued about money a lot. And there was nobody in their lives to coach them, to mentor them, to help them. There was nobody to share the process. There was nobody to help them develop an internal financing system that would've saved them and may have saved their marriage too. And both my parents passed away prematurely. My dad passed away almost a year to the day that he retired. This was in 1998. I was 22 years young at the time, and I had to step up and be the patriarch of the family. My dad had a dividend-paying whole life insurance policy, And when he retired, his advisor encouraged him to surrender it, to forfeit that contract in exchange for the cash value. His advisor never explained to him that he could borrow against that pool of capital without ever interrupting its growth. So my dad forfeited the contract, and when he passed away and that death benefit would have shown up when it was needed the most, income tax-free, It didn't exist. And my mom passed away a few years later. She had a small group employment insurance benefit. She was a nurse and worked in hospice care, delivering care to terminally ill patients. Nobody told them what I'm walking you through here tonight. And I'll share with you, this past summer, last year, was the— I visited my hometown of Timmins, and it was the first time that I had been back there since my father's funeral. More than 27-plus years since I had been there. And I reflected, I reflected on that, that pain that we went through financially as a family. And I didn't conceptually understand what was happening at that time. But I knew that my parents were stressed and that they were unnerved and that they were constantly arguing. And it doesn't have to be that way. And so knowing that I came from a family, broken home, divorced parents, this close to financial ruin, embraced this process in July of 2008, and it completely changed my life. Whenever I have an opportunity to meet with a family and to share with them where we started and where we are today. We have 77 policies in our family banking system, 27 individual lives insured in our family. We pay $1.596 million a year in premium. We have more than 6 figures a month flowing back to the family's money pool in loan repayments. This was money that would have permanently been transferred away from our family in the form of car payments, mortgage payments, appliance payments, home renovations, property, you name it. And we are well into that journey. This didn't happen overnight. This was gradual and incremental. Precisely the pace at which something that actually works is meant to move at. We've had death benefit. My father-in-law was diagnosed with cancer right during the height of COVID He battled it for 5 weeks, passed away in September of 2020. I owned 2 policies on his life. He thought he wasn't even insurable when we applied for them years earlier. He said, "Oh, I'm a type 2 diabetic. I don't think I'm life insurable." I said, "Well, there's only one way to find out." We applied for it. I paid the premiums. I controlled access to capital. And I told him, "Papa, if anything happens to you, Nona is not going to have a bad financial day for the rest of her lifetime. And the only thing that I expect is to be reimbursed for the premiums that I've paid." and that we open a policy on all 9 of your grandkids and we fund it for 10 years as your legacy. And he agreed. And a few years later, he was gone. Every single one of you in attendance tonight is going to graduate or pass away at some point. We just don't know what your best before date is. But I promise you, you're going to leave behind problems, and you're going to leave behind people who love you and care about you and who are going to be grieving. And should have the financial resources to take the time to grieve the way that they should. I didn't. When my parents passed, I filed all of that grief away, and it caught up to me. It caught up to me. I will never forget when we started— my wife Rebecca and I started to have children. We have 4 amazing children, and I was emotional at every family event. And she said, you need to go talk to somebody. And I met with a grief counselor and he said, I want you to do me a favor. I want you to write a letter to both your parents and express everything that you would say if you had known it was the last time you would speak to them. So I went through this exercise and I said, oh, I'm done. And a few weeks later I contacted him and he said, you're not finished yet. You need to invite your family and you're gonna read those letters out loud to your family. And I was just a waterfall of tears. And he leaned into me at the session and he said, how are you holding up? And I said, I feel emotionally drained. And he said, that's the point. Allow yourself to feel it. Don't file it away anymore. And that changed everything for me. And so when I was back in Timmins visiting that family home where so much destruction an emotional stress. I wasn't angry. I was there reflecting. So when I say I started where you are, I, I mean that. And I want to show you something. That's, that's the property, 513 Martin Avenue. And so this, this beginning didn't stop me. Don't let it stop you either. Don't let your beginning stop you. Think about who comes to mind in your life. You've heard me walk through this structure and you've seen me describe how money flows through most people's lives, likely most of you who are here. And you've definitely seen that the difference between working hard and building control isn't effort. It's who controls where money resides between earning and spending. And the fundamental truth is simple. Nothing changes unless you change the structure. Not your income, not your investments, not your stress level. Structure determines the outcome. And this is the moment where most people do one of two things. They say, "Oh, okay, this is really interesting." Or they say, I need to see how this applies to me. The fir— the first group drifts. The second group gets clarity. And clarity definitely compresses time, because here's what I've seen over and over and over again across North America, across professions, across income levels. The people who act when something makes sense move forward faster than people who wait until it's perfect. The next step is not a commitment. It's not paperwork. It's not a decision to buy anything. It's a private clarity call. We map out how money moves through your life. We identify where the control is missing, and we determine whether building your own internal financing system actually fits your situation. And if it doesn't, we'll tell you. But if it does, you're, you're definitely going to walk away from that call with some amazing direction. But here's the part that most people underestimate: time compounds whether you act or not. And so the structure that you're operating in today will continue operating tomorrow and next year and 5 years from now. So if this resonates even just a little, don't drift. Be the person who moves when it makes sense. Text the word schedule to the number that's on your screen. Pick a time. It's a private, focused, and direct conversation. Clarity changes trajectories, people. So, let's get you to clarity. Let's get you to clarity. Isn't that good? People have asked me about our family banking system, which I'm very grateful for the questions that I receive around that. And this picture that you see on the screen here, this is my nephew, Ethan, and he's holding a loan agreement. This is all that he's ever known. In this picture, he was 16 years young. He's 20 years young today. He has financed I think he's up to his third vehicle through the family banking system. He will never see a conventional bank for anything other than the convenience of debit. This is my niece. This is all she's ever known. She will never see a conventional bank for anything other than the convenience of debit. This car was purchased through the device of a policy loan from a life insurance company. The lien is on the death benefit of the policy that I own on her life, not on the car. She makes payments every single month. She's developing the right financial discipline and responsibility. The distinction is where the money's flowing to, who it's being put to work for, and for how long. We take family vacations and we have our annual family banking meetings. All through the device of policy loans from the life insurance company. Our base of capital is larger when we get home from vacation, not smaller. This is the most recent— my firstborn daughter, Anna Grace. This vehicle purchased through the device of a policy loan. This is our most recent family office meeting hosted on a cruise ship the size of a metropolitan city. It was unbelievable. It was phenomenal. And we meet as a family and we talk about loan activity in the family. We recognize the kids for their contribution to the family banking system and the disciplines that they're developing. We talk about the future always being bigger than our past, and the cash value agrees. The cash value says, yeah, count me in. I'm going to keep growing every single day, so I'll definitely be bigger in the future than I was in the past. I'm not concerned with what the stock market's doing or the economy or whatever political matters are being addressed. These policies are private unilateral binding contracts, and I like my privacy. Policy loans are not reported to TransUnion, they're not reported to Equifax, they are private. And when death comes, and it will come, when you have 77 policies and 27 individual lives insured, I would say that we are pretty well diversified. Isn't that good? This is where you can find me on the Instagrammies, if any of you are on the Instagrammies. I like when people connect that way. At this time last year, I didn't even know I had an Instagram account until somebody on our team told me, and, uh, I think I had 2 followers at that time. One was my cat. And the other one was me on a different profile. And now I've got 1,490 followers or something. Just very blessed. And so follow me on Instagram. Money flows. Once you begin to observe the pattern of flow, you start seeing something that most people miss. Money is always being stored somewhere and borrowed from somewhere. You've got car payments, credit card payments, loan payments. You're paying cash for things.