What You NEED to Know About Infinite Banking (Don't Make These Mistakes!) | Jayson Lowe

Don't make policy loans without making provisions for paying them back.

If you steal the P's, meaning you access policy loans and you don't repay them, you're stealing. That's a polite description of theft. When you're dealing with a mutual company where there's no stockholders, you get to a point where you can be listed under a category called significant ownership, meaning you are a significant participating policy owner.

I want to say this before we dive in to Nelson's book that has sold more than 550,000 copies around the world for a reason, because the process works. Here's what I want to say right out of the gate. Imagine for a second you were to hear somebody say you should not use.

Dividend paying whole life insurance.

As an entity to create ready access capital on demand on your terms so that you can go about controlling how you finance all the things that you need throughout your lifetime. You should only use dividend paying whole life insurance to provide a death benefit.

Let's contrast that with me saying you should not use real estate to generate create wealth or passive income. You should only use real estate to live in.

That's good nonsense. Words have meaning and everything begins with the way that we think. And so we're going to just dive head on, head in.

Be the lightning and the thunder. We're going to do a deep dive right into Nelson's book. And this is coming from a place of.

Years and I'm talking if I was to take you back to July of 2008 and share with you that this was the domino, this was the domino that tipped over in my life. This book the process of becoming your own banker, the infinite banking concept authored by our mentor, the late R. Nelson Nash. We're going to do a bit of a deep dive now. We understand that we've we've scheduled the time for today's webinar respecting the use of all of our attendees valuable time. But regardless of where we are at the time that we plan to wrap up today, if Rich and I want to keep jamming, you're more than welcome to hang out with us. So without further ado, I'll just share with you. Richard Canfield and I co host the podcast titled wealth without Bay Street. We've also got as an ascendant financial team, we have the YouTube channel titled Bankers Vault. So again that's wealth without Bay street and Bankers Vault. I also want to share if there are any advisors who are tuned into this live stream today. Credit to you for wanting to continually grow and Learn something new. At Ascendant Financial, we're a managing general agency in Canada. We're the only managing general agency that specializes in the implementation of the process of becoming your own banker. The infinite banking concept. In the United States, we under, we operate under the subsidiary name lifeva and we are always looking for great additions to either be licensed with our MGA or to join our team directly. And so I just thought that I would put that out there because that question's been coming up more and more frequently. So without further ado, Rich, let's start. Where do you want to begin? I'm going to turn off my video, give you the platform. Let's get started.

Well, I think we should basically begin right at the beginning the book, Jay, and just tackle, you know, maybe the first couple pages and then I think we'll, we'll kick it up from there. I know for me, I like to circle to the back of the book right away. So probably start a little bit at the beginning and then we'll flip right to page 85 at the back. So with that I'm going to go ahead and share my screen and we're going to use this one right here. And I'm okay. And somebody just type in the chat box, let me know. You guys can see that on the screen there. And we're going to bring it up full screen.

Perfect. Okay, everybody can see that there now.

So we're going to go ahead and jump right to the introduction of the book and you know, kind of first things I want to highlight. Jay is literally right at the beginning. So first off, Nelson created this book originally as a course for a 10 hour cinema. When Nelson first started doing this, he was teaching it as, you know, over about a five week period at two hour sessions on Monday nights. So you had to come back every week. Now Nelson never phoned people to come back to the session. They either showed up or didn't show up. What he found is that some people that were there one week didn't show up the next week. Others that showed up brought friends with them. So it was a really interesting experience. And he said he did Monday night specifically because he wanted to compete with Monday Night Football, which I thought was really fun. So this is all about the power of dividend paying whole life insurance. And this is really important. It is not a sales tool for life insurance agents. This is really information that Nelson thought should have been taught in the, in the insurance industry for years and years and years and it just really wasn't fundamentally taught. So this isn't about you creating a brick and mortar bank. This is about who the banker in your life is right now. Someone's playing that role and it can and it should be you. He goes on to say that the book demonstrates that your need for finance during your lifetime is much greater than your need for protection. What he's saying there is, hey, everyone should have some protection to protect their family. We have a responsibility to do that. But your need for buying things and, and acquisitions vehicles, the things that you need to acquire throughout life and where you're spending all your money is more important than the amount of protection. It's probably a bigger amount of money that's going to flow through your life than the protection that you need. But if you solve for that financing aspect, those major purchases throughout life using this beautiful mechanism of dividend paying life insurance, you'll end up with so much of it, you might not even get it past the underwriters. Now, Jay, why don't you pop back in? You mentioned earlier before we went live on our session that you're, you're going to be going back into underwriting and you might be at a point where they're not going to give you any more. Is that correct? Yes.

Yeah, that's correct. You know, the, the insurance carriers name it Human Life Value.

What an interesting name. What an interesting way to characterize it. But when you get to the point where if you're expanding your system to accommodate all income, which we'll touch on as Nelson referenced in his book, you get to the point where, especially when you're dealing with a mutual company where there's no stockholders, you get to a point where you can be listed under a category called significant ownership, meaning you are a significant participating policy owner. I've been called worse things. I have no problem being called a significant participating policy owner. And I'll just say this. If Kevin, we mute everybody.

Any of.

Our teammates who are on, make sure you're muted. Okay, awesome. So I'll just say this is that. Let me, let me touch base on this real quickly so we know we understand the tool that's used to implement the process. Right. So there's a difference between what someone is buying participating whole life insurance versus what someone is implementing the process of.

Becoming your own banker.

Nelson said that you should ideally have policies with a mutual life company. Now, we are going to have many different opinions about this out there in the world. He indicated there are some good stock companies out there too. So it's not about being good or Bad, right or wrong, best or worst. It's all about understanding the attributes and understanding this. When you deal with a stock company, you're dealing with stockholders as well as participating policy owners. The stock company, publicly traded company, is responsive to the stockholders.

Irrefutable. The stockholders have an expectation of profit and value creation. Stockholders receive portion of the divisible surplus generated by the participating account of the life insurance company.

People can look at what's happening in any given year, oh, the dividend scale, interest rate, or the DCIR for anybody who wants to hang out with the life insurance company executives.

The DCIR is 6.25% at this particular company. That's a stock company, and it's 6.24% at the mutually owned company. Surely if you're halfway smart, you're going to want to do your business with the company that has a higher dcir, dsir, dpir, whatever it is, doesn't matter.

What people aren't thinking of is 100 year theoretical lifespans. We hear this noise on Wall street, on Bay street, on advisors talking about, hey, don't you understand that one of the biggest destroyers of your wealth is fees management, expense ratios that institutions and portfolio managers charge, and that they're paid a fee on the account balance value, the account value, not the gain. And they're paid on that account value for as long as the account is in force. But nobody's added up how much stockholders have gotten out of the participating account over the last century. Whereas when you're dealing with a mutually owned company, the sole beneficiaries of the divisible surplus are the participating policy owners. So my question to you, to all the viewers around the world, who would you rather be in a 100 year relationship with?

Think about it. You can, you can type it in the chat box if you want.

Think about it.

All right, let's, let's pick up as is. Good. I agree.

Okay, here, let's flip a coin. What's the next topic?

Well, I want to flip, I want to go right to page 85.

Okay, so on page 85, here we go. So, Rich, heads or tails?

Heads.

You in to start page 85?

That's tails. I gotta start.

All right, sounds good.

Okay, can you bring up page 85?

Let me, let me load it up here. I gotta look past my tablet so I can make sure.

Okay, here we go. So Nelson begins with saying this. There are only two sources of income, okay? You've got people at work or you've got money at Work. And he talks about passive income, time, retirement. He talks about how banks work. Right. So here are a couple of key fundamentals that I want you to really think about as you read page 85 over and over again. Because each time you read it, you are going to see something that you didn't see the last time that you read it. Go to point number three. Because everybody that we interact with earns income from some supply source, whether it's T4 income, W2 income, interest income, dividends, a combination of all the above. Isn't it interesting that all of that money flows onto the books of someone else's bank? Right, I'll say that again. Someone else's bank, someone, some organization must perform the function of banking as it relates to your needs. If you understand that, you can become that character in the financial play. You can become the banker as it relates to your needs. You can stop someone else from getting all your money. That's the problem, is that you're doing all the work and everyone else is getting all your money. And what Nelson said so often is that unless you understand the problem, the solution just won't matter to you. Now when he says if you owned a banking system, he's referring to an entity, and he referred to that entity as dividend paying, participating whole life insurance contracts, which plural means ideally a system of contracts that you grow and develop over time. Wouldn't you prefer to run all your business through your own bank? This is akin to what we talk about, Rich, all the time. When I say, hey, Rich, if you and I owned a Publix grocery store together, would we ever want to buy our food or have our inventory shipped to Walmart?

I don't think that would go over very well.

It certainly wouldn't. If you really treat this like a.

Business, we would have a really big conversation about why the heck is that happening and big time probability. If that actually did happen, by the way, it's probably because someone let me in charge of filling in the online order form and the delivery address and I probably would have messed that up. Much like I mess up most of my flight bookings, like happened the other day and I had to go and reset everything, which took me an extra hour to go fix. So if anyone wants to like book all my flights for me so I don't have to do that again, that'd be, that'd be great.

Carry it on.

All right, so on 85. One of the things that I really appreciate about Nelson's one, it's, it's one of My, you know, favorite, favorite components is bullet number two. If you knew it, passive income time, you would be getting back everything you paid into a system tax free. I always say potentially tax free. Would you object to putting any more money into it? Obviously it's a rhetorical question. We're talking about a system. So just imagine that for a moment. You have a system, you put money into it. Every time that you put money in, you have the ability at some later date to take that money back out. And it, it can constantly provide almost like a refilling resource for you. Essentially this to me, you know, there's a lot of amazing stuff in Nelson's book. The whole book is incredible. But this one, when I first read the book, this really hit home for me. And so when I talk about reading the book for people and I have in my instructions, I always say, look, you're going to read these first couple pages and then you're going to skip to the end at page 85, you're going to read all this and then you're going to go back to the beginning again because this really does summarize a lot of the key components. The other one that I personally am a big fan of is number five, wealth has got to reside somewhere. Where would you prefer to have it reside? Now, you know, I'm a real estate guy. We have a lot of real estate investors who obviously get attracted to this concept as well, and people that we work with. Nothing wrong with real estate, but when you think about where the wealth is going to reside, where you want it to be, if you put it in real estate, take a look what happens when one needs liquidity. Real estate is very much a frozen asset. Now. Right now, at the time that we're having this conversation, people are experiencing that. You know, I had a client recently who very, you know, had a lot of variable rate mortgages, decent real estate portfolio. A lot of it was in the Ontario marketplace and there's rent control there. So she wasn't, she had long term tenants, which is great, except she wasn't able to keep up with the pace of increasing costs of property taxes and other things. So her cash flow got squeezed and then the lever of the real estate interest rates went the opposite direction and boom, she's in a negative cash flow position. So she'd been living off of this revenue, now she's in a negative cash flow position. She's in a position where she also, because the rates went up, it's starting to squeeze and impact the value of the, the appreciation of equity that she achieved. So it's, it's not that her equity is frozen, she could sell some of those properties, but it's, it's really created an issue for her where she almost is forced to sell to some degree. So that's not the position that we want to be in. So as a wealth storage facility, it might not be the best one on the planet relative to the liquidity that you want to have when you need it. You know, Nelson talks about the stock market he has at the back of the book. And in fact, if you go to Nelson's website, he has a whole list of recommended reading about the stock market. Nothing wrong with the stock. Lots of people do really well in that category.

That whole list is right behind me.

Oh yeah, Jason's got the entire library back there behind him. It's not necessarily. And we'll do this so everyone can see your library back there. Every, every recommended book on Nelson's in. Nelson's book on his reading list is literally behind him. It was an amazing, I think was a birthday gift last year, wasn't it Jamie?

It was, yeah, yeah, yeah.

So what's, what's interesting is just that we're talking about the volatility in that marketplace and if that's a wealth storage location, then the liquidity changes quite a bit on a day to day basis because markets could be up and they could be down. Nothing bad about it. But is that the place that you want to store your wealth? That might be a place you want to grow it. It might be a place you want to spend time getting educated so that you can become a ninja at, you know, some unique strategy there. But is that where you want to warehouse everything? Probably not the best thing. Now the last one on the list that Nelson talks about is free contract with other free persons, which is the basis of life insurance from this base of financial operation. So a base, financial operation base. It doesn't mean you know that you're, that everything is stored in there. You don't do anything with it. It means it's a place where you store and activate it somewhere else in your life. You could do all the other things in life that you desire. Now I think this is so beautiful. Free contract with other free persons. Insurance was originally created as a way to reduce risk for other people, to pool risk. That's what insurance is. It's pooled risk. So we have a risk as human beings that at some point in time we're going to stop taking air into our lungs and we can be Talking about us in the past tense, Everyone agree to that? So when that happens, there's clearly a risk, a financial risk that happens to the rest of the family members. And that problem was solved with insurance a long time ago. They said, hey look, if we pull a little bit of money in from everybody, not everyone's going to die at the same time. So we'll have a big pot, we'll bet that get that pot to grow. And every once in a while, when someone does die, who's paying into this pot, we'll have enough money to make sure their family is looked after. So it really is one of the original social goods that was ever created because it was designed to solve a need. The general public demanded something to solve this problem and insurance was created. It's a beautiful system because it solves real issues for people. And coincidentally, when you get the right stuff, the participating whole life set up in an appropriate way. With the education that we're going through today, you can now take this vehicle, your knowledge, you can smash those things together and you can create peace of mind and financial prosperity through the utilization of capital throughout your lifespan.

Wow, I like how you finish that.

That was really, really good, Rich. I didn't even need to make it. That we talked about before we went.

That was really, really good. And here's where I'd like to go from there. Just one final point from page 85 and then let's jump into page 72. We're kind of working a little bit backward. I'm a little strange. If you ever sit with me on an airplane and I'm reading a magazine, I read it from the back to the front. It's a little bizarre, but that's just me. That's how I do it. So last point on page 85, which really struck out to me is something that Nelson said many years ago. He said, you just don't have to play their game. And what he meant by that is he was referencing these tax qualified plans, right? You've got registered retirement savings plans, you've got 401ks self directed Roth IRAs. And because I'm speaking to both Canadians and Americans in context of our talk today, you just don't have to play their game. Everything begins with the way that we think. And so if the government creates a problem, too much taxation, and then turns around and grants you an exception to the problem that they created by enabling you to store money inside of an entity that is tax qualified, aren't you just a little bit suspicious that you're Being manipulated. If, if these plans were all created under the guise of giving you a tax break, all the government really needs to do to achieve that objective in simplicity is cut taxes. Do you really believe that they want to do that? And every single year that you file a tax return right, you're on the government's radar and so are your qualified plans. Respecting the truce that your money and your wealth must reside somewhere. Because money and wealth are two completely different things.

Understanding that it must reside somewhere. If you had a choice. You pull up to a drive through and lane one says be on the government's radar. Don't be in a position of control. Subject yourself to volatility and the stress associated with that. You have no clue what the account value is going to be at any point in the future. And neither does anybody who sold it to you. Or store your money inside of an entity that's contractually guaranteed to grow on a daily basis. It can't go backward. You pay no tax on the buildup. You have a tax free windfall called the death benefit that shows up exactly when it's needed the most. You participate by being a co owner of that very same entity. And when a divisible surplus is created, it's paid out annually. A portion of it, a portion is kept on reserve so that we have ready access capital to smooth out any volatility. You get paid dividends. No taxable event gets triggered on those dividends. Your cash value grows daily and you have ready access to capital on demand, on your terms to take advantage of high caliber opportunities that track you down. And when you do that, the repayment schedule is unstructured. You control it. Just imagine the drive thru window reaction that you would have, huh? Let me take half a nanosecond to decide which lane I want myself and my money and my peace of mind in. That's what Nelson meant when he said, listen, you just don't have to play their game. There's so much financial noise out there in the world because of the the mainstream advice that just keeps getting pontificated over and over and over again. Hand control of your money over to someone else because they can do much better with it than you can. It's nonsense. It doesn't have to be that way, Rich. I can tell you from a place sitting in this chair of complete authenticity and honesty, we don't have to rely on a conventional bank for anything other than the convenience of debit. Did it happen overnight? Of course it didn't happen overnight. It was gradual and incremental but we had a very specific objective to achieve and we didn't play their game. We became co owners of an entity that has never failed to produce a surplus. It's private contracts with a private company.

I like privacy and I'm sure most people on the webinar do too. Otherwise everyone would have their cameras turned on. So every, remember, everything begins with the way that we think. And I can't overemphasize that point enough. Let's hop over to page 72. Sound good?

Do it.

All right.

All right. So this is about even distribution of age classes.

So Rich, when Nelson talked about an even distribution of age classes, can you provide sort of a, sort of a, a high level overview of what he was trying to get across before we get into the key points on page 72?

Yeah, I mean I think it really boils down to the, the diagram that he's got here. This is, this is based on a forestry principle. And if you start planting, you know, you have a huge amount of land, you're going to start planting trees. The purpose of that is to call those trees eventually so that you can have the lumber, you can sell it and you can have a very profitable business. Trees take a long time to grow. So you divide the land into 40 compartments, 100 acres each. And you plant these things at different schedules so that when you, you make cuts.

Can I add to that, Rich?

And then you're doing that every couple of years so that you're creating a constant stream of cash flow and then replanting so that that grows for the next one.

Hey Rich, can I just add to what you just said? Because you illustrated probably one of the most important sentences on that page. Dividing the land into 40 compartments. I want you to think of each compartment as a life insured.

Yep, it's. Each one of those is another is another policy that you're acquiring in your system as you, as you grow and build over time. It's, it's, it's not something that happens. So if you were going to, if you had this land and you want to turn into something productive because otherwise it's just sitting there, it's not the type of land maybe that you can farm in any way. So forestry makes sense. This is a long term objective. This is something that takes 40 years to, to accomplish. But then you've created perpetual motion as long as you maintain the, that is, you cut the lumber, you sell it, you have an area to replant. You replant it so that in another certain period of time you can cut from that section again. Meanwhile you're cutting another section the following year, replanting lather, rinse and repeat. Lather, rinse and repeat. And that's really what he's trying to talk about here. And so the purpose of this, you know, one, two pages is all about talking about grant grandchildren and turning in the same concept into this distribution of continual financial value as it rolls through life. So this is on page 71 here. Oops, sorry, it goes a little quick. Here's page 72. And Jay, I know there's a number of pieces you want to cover here. I'm sure it's going to be, you know, primary along these, these advantages, but I think I want to really just hit on this diagram. This, this is a follow up kind of example using Nelson's forestry connection. But now talking about how generations are buying on the grandparent, buying on the grandchildren. Okay, now this person becomes the next grandparent and it's buying on the grandchildren. Then this person becomes the next grandparent, buying on these grandchildren and so on and so forth. So you're always creating this distribution mechanism that allows for efficient capital to be accumulated not just from, from, from the grandchild's perspective, but the grandparents perspective. They own and control that contract. They only pass it off in the way that they determine at the time that they go. But you're creating this cycle of constant motion effectively on money.

So well put. And these are things rich that over the years you and I can confidently say that when we're connecting with people and talking to them about their own insights from having read Nelson's book, so much of these key takeaways weren't grasped on the first read. That's why Nelson recommended that you read his book more than once. And in fact you revisit his book regularly because each time you see infinite banking concepts, the more you see it, the more you'll see you didn't see. And when we talk about the family banking system and how to, you know, really put this in place at a family level, what gave rise to that was dealing with so many people.

Insert here entrepreneur, real estate investor, business owner, individual husband, wife, joint venture partners, et cetera, they just didn't know for the most part that you can insure your kids, your grandkids, your spouse, your key people in your company. And when you think about family banking, the essence of it is to keep the money in the family. Because what we're taught to do mainstream wise is not to do that. And we share this all the time. Where you're sitting around the dinner table and you're maybe even telling your own kids this right now. Someday you're gonna have your own mortgage. Someday you're gonna move out and start your own family. You're gonna have your own bills, and you'll understand why we never talk about money at this dinner table. The bankers are standing out your dining room window going, keep going. This is exactly what we want you to keep doing. Keep the topic of money away from the family. Let us handle the motion and the liquidity and the control of your money, because we can do much better with it than you can versus what the wealthy do is they say, well, you know, what we do as a family, we actually circle the wagons as it relates to money. We keep money in the family. We want the loans, the mortgages, the borrowing, the business acquisition, expansion, proceeds of sale, real estate growth. We want all of that money flowing back to the family, not flowing away. And in order to do that, you've got to think three generations past your own, which was one of Nelson's six golden rules. And in order to think three generations past your own, you got to start with your own. That's where it all begins. And so you've got to take care of getting policies in place and then thinking about everyone else in your life that you have a beneficial interest in, so that gradually and incrementally over a period of time, you can insure them and you can grow the program so that you keep the money in the family. One of the things that we do in our own family, as an a direct interpretation of page 72, is that we started our program, you know, with just one policy, right? And we've grown it to the point where now, I think once underwriting is done on the last set of 12 that we had applied for, I think we've got all approved, with the exception of one that's still in underwriting. But we're just going to. We're going to be just shy of 79 policies in our family banking system, and each one of those policies is growing cash value on a daily basis. And we're utilizing the system to go about financing and controlling how we finance all the things we need in life. But someday, death will come. You and I were joking earlier, before the call, when Nelson said, would you believe that out of 1, 000Americans alive today, 1,000Americans are going to die eventually? And so isn't that the truth? Every one of you who are on the webinar, you're going to die someday. And when that time comes.

Already be the bearer of bad news.

Yeah, sorry to be the bearer of the truth. And when that time comes, money is going to flow in the form of tax free windfall death benefit. It replenishes the family. We extend loans, we do private lending, both internally within the family and externally outside of the family. And we have the gold. So we make the rules.

That's referred to commonly as the golden rule. So we're not having to deal with any of the stress pressure, debt servicing ratios, credit checks, income verification, all of that noise that creates stress. We are literally getting paid every single day to move money. Does that sound like a familiar character in the financial play? The banker and the one making the most money, understandably so is the banker. And when you implement this process and you really, truly dive into page 72 and you understand what Nelson's saying here, that it covers multiple generations, it promotes long range planning. Underwriting problems are minimized because when you put policies in place on juveniles, there's no paramedical exams required, there's a tax free buildup of cash values over a long period of time. It never stops. If you keep insuring everyone you have a beneficial interest in the outlay is very small compared with the ultimate yield. Do you have any earthly idea how big my children and their children's policies are going to be when they're my age? They're going to be far bigger than the policies that Rebecca and I own on our lives today, I think for sure.

Do you? You have any earthly idea how big like my son is? Because he's like 6 foot 9 or whatever and he's like a 14 year old giant. I thought that's where you're going with it.

I was just about to go there. Yes. Jackson, what an incredible kid. The generation paying the premiums can most easily afford them. And so think about it. When you have death benefit that flows to the next generation, if you don't transfer any of the knowledge on how to be a good steward of that and it's just a death benefit, the money is going to be squandered. But if you transfer the knowledge of a process along with the money in that exact order.

You are going to keep the wealth in the family and the death benefit proceeds are going to be utilized to continue paying premium on all the current generation. And then the current generation is going to be responsible to leave the process and the money in that exact order behind to the next generation. They're going to be watching this webinar, they're going to be learning how to do this, because this is going to be on the YouTubes and the. And the Internets and all that in perpetuity. So page 72. I'll just end with this. Passive income is assured, not hoped for. There's a big difference. Passive income is assured, not hoped for. Which lane do you want to be in? Hope or assured? Take your pick. I don't wake up wondering what any of the talking heads on the major news networks talking about the stock markets and political turmoil and the economy.

All that I do is log on and trust but verify that my total cash value is larger than it was yesterday. Your family's net worth can go up every day just like mine, without risk.

Believe me. You sleep a lot easier and your blood pressure actually goes down. That's proven. I'm living proof of that.

Yeah, absolutely. Jason. That's amazing. Sorry to interrupt you guys. You're doing an amazing job. I just quickly wanted to check in and let everybody know because I'm not sure if this was mentioned in the beginning. There's some really good chat and comments going on in the chat window here, but I want to bring everybody's attention just to the bottom of your zoom screen there. You're going to see a chat window and a Q and A window. So there's some really good questions that are coming into the chat window as well, Jason, and I don't want them to get missed. So for you who are on the webinar here today, just make sure you take a look at the zoom controls at the bottom of your screen. You'll see a Q and A. Just put your really great questions in the Q and A window so we can make sure we get some of them addressed throughout the webinar. Okay, thanks so much.

Thanks, Fern. Yeah, I love it. Um, and with that in mind, we're gonna. I think we hammered page 72 pretty sweet. Jay, where do we wanna go next?

I wanna have a conversation about the grocery store before we dive into twin sisters.

Okay, sounds good. And while we're. While I'm getting ready to bring that up for everyone who's on the zooms there, or if you're watching on live on YouTube, go ahead, type in, just let us know. Value check. You getting value out of us going through this here today? 10 is. Oh, my God. This is the best thing since sliced bread. I'm loving it. And A1 is. What am I doing here?

All right, looks like some. Looks like some 10's coming through.

Awesome, awesome, awesome, awesome. Love it.

Great stuff. Thanks, everybody. Okay, here we go. Grocery store coming up in one.

Let's flip again. Rich, you pick heads or tails.

I'm gonna go tails.

Okay, tails. You win and you start.

Let's do that one more time.

I'm gonna keep going until I get. There you go. Tails. Tails.

There it is. All right, you're good to go. Sounds good. All right. So the grocery store, this is. You know, man, there's just so much value in this book. But fundamentally, these two pages here, page. This is page 15 and 16 on the fifth edition of the book. The. The understanding and the. The. The constant rereading and the recognition of this particular section of the book is instrumental, I repeat, instrumental to your fundamental understanding and your implementation. So understanding is part of your journey of getting there, deciding if it's something you want to do, etc. Implementation is. Once you've made that commitment, you're going ahead, you're working with a coach, you're getting up and running. And on an ongoing basis, you want to make sure that you're abiding the rules and the principles of the grocery store that Nelson talks about. And the reason he uses a grocery store is because he wants to assess a business, that you are both a consumer and a seller of the same thing. That's why he picked that. Well, in banking, you are also a user, a consumer and a seller, the same thing. You have to perform this function. Someone's doing it, and it can be you. Essentially, one of the things that I really want to highlight at the grocery store that. That stands out for me is Nelson spends a lot of time talking about. I want to write down here. I'm going to pick a pen. Talking about essentially, capitalization. Okay, don't mind my spelling here. But the importance of capitalization is so key. He talks about getting in a grocery store. Well, you. In order to do that, you. First, you need to research what you're going to do. Why are you doing that? What market are you going to be in? You need a building to get it done. You got to research where that building is going to be. You need to create. You need some capital or some investors. You need some way to have the dollars to go and acquire the land to build the building or to get an existing building and renovate it so that you have a nice grocery store. And just, you know, for everyone on the call here, let's. Let's find out who here, type a Y in the chat. If you've ever been to a grocery store that was missing a whole bunch of Items or it looked kind of, you know, dingy. It just didn't look like it was well cared for. And, and has anyone ever been to one of us? Let's see some whys in the chat. If you've been to a grocery store, that, so for everyone that's typing in saying yes, if you've been to a place like that, did you ever go back?

You know, so why, if you went back and if you never went back, okay, so a lot of people saying no, a few people saying yes. What's common is that when, when you go to a space like that, you're looking for an item and they don't have it. And then you go back again, you're looking for the item, you don't have it. That repeats a number of times. The brain says, hey, I should probably stop shopping at the store. They never have what I need. They, they don't have stuff on the shelves. So they're not stocked effectively. You might have to do it at a necessity, but the reality is you would generally choose to go to one that's well stocked, well cared for, well lit, etc. And so Nelson says you have to construct a nice. Oops. A nice looking building.

Let's do highlighter here. A nice looking building, a nice property. It must be well arranged, attractive equipment, and it has to have everything in place so that people will actually come. Otherwise they won't, they won't come. You must stock it with quality, good quality, attractively displayed and competitive prices. If you don't do these things, people will just stop attending. And if they stop going, the result of that will be your grocery store will fail. So Nelson's trying to teach us the important fundamentals about growing a simple business. And if you are in the banking business, you need to apply some of these principles of looking after the business, making sure it's well stocked. Well stocked in the banking business means you have capital access, means you're funding premium. It means that you're making loan repayments, you're, you're restocking the shelves. So as an example, you have, you know, he talks about a can of peas here. You buy a can of peas, you go to the till, you pay for it. That can is now gone. Doesn't matter who pushes it. Another can has to come from the back room, the storeroom, it has to land on that shelf so that the next shopper can see and buy canopies as well. If it's not being restocked or it's not being purchased and ordered and Showing up on a truck in the back room, eventually you're going to run into a problem. All the people who want peas aren't going to be able to buy them at your store and they're going to stop coming to your store and your store is going to begin to fail. And that's when it ends up happening in these situations. Jay, you want to jump in?

Yeah, definitely. Here are a couple of key additional items from the grocery store example that are so important to understand. Nelson wants you to think about being both the buyer and the seller of the same goods.

Right.

Because everybody needs to eat, everybody needs the use of money. So if you go to page 16 and you go down to that bottom left paragraph, I want to expand on this for a second. Whether you're in Canada or the United States. So in Canada, we have the Canada Revenue Agency, cra. In the United States, we have the irs, the Internal Revenue Service. The mantras and postures are both the same. The more money you make, the more we take. So if you're just operating a grocery store in the, in the truest sense, the more money and the more profit that your grocery store makes, the more the government takes. And so that can create an incentive for the owners of the business to take the cans of peas out the back door. Because, hey, if we don't go through the front door and pay retail, then we're essentially circumventing IRS and cra. But suppose there was a situation, as Nelson went on to say, where the profits from the sale of your groceries weren't subject to income taxes. So when you create a policy or a system of policies, you're paying no tax on the buildup of cash value. Does that not create an incentive to never steal the piece? Knowing that not only do you have a much more profitable business, but you're also going to, as Nelson would say, clip larger coupons when you get to passive income time in retirement. Because when you can get access to a preferred source of retirement income and you can do that without triggering any taxable event, how does that compare to the person who played the government's game and has all the tax qualified plans? Remember, you're a business owner. You're cranking up a business that never existed before. What business do you want to be in? Well, you want to be in the business where you can achieve maximum profitability and pay the least amount of tax. At least that should be your motive.

This process.

This process of becoming your own banker is meant to ensure that you understand the advantages of not stealing the Peas. The product, the entity, is your store. That's your warehouse of wealth. That's where you store money. And so one person had typed into the chat window versus the Q& A window. A really good question, like, why would you want to have multiple policies versus just having one big policy on one person? Well, ask Costco. Why would they prefer to have locations in every major city center than just have one massive distribution center and retail storefront in Ontario? The reason is, is that there's a demand and a business like Costco is showing up and putting up a facility where there's demand. Well, in your family and in your business, is there not an ever increasing demand? And if you have multiple lives insured, you're in a position now where you're not just transferring wealth without a warehouse to store it in, you're transferring wealth. And you already know that there are multiple warehouses to store it in. And those warehouses belong to the family versus if you just had one large death benefit on one person, that person gets on the wrong airplane or they trip, you know, on a banana peel in the grocery store and something happens to them. They pass away really hard in the.

Can with a can of peas. Yeah, it flies up and comes down, Gets right in the noggin.

Exactly. Or they end up, you know, incapacitated, where they end up like talking to the ice cream in the frozen fruit section aisle of the grocery store. But it's when death happens that the windfall of money shows up. But remember, money must reside somewhere. Where are you going to put it? Your grocery store is gone. It's not in business anymore. So you want to have multiple locations so that you always have a place to warehouse the wealth. That's.

There's another risk to that too. Jay, I want to highlight again the idea of one person, one policy, that you lose that individual, hey, yeah, you're going to receive a tax free benefit. That's great. However, if you have this windfall of money and you want continuity on that for generations to come, now the remaining family members need to go and apply for the insurance to duplicate that event. And they may or may not be insurable. We've dealt with many people who have not been insurable, and then it creates a problem. Whereas if we begin and we get people insured as soon as we can, or at least we lock in their health insurability, we're creating an option on their future tomorrows. And so that's another reason for multiple policies. It's not just limited to expanding the size of your system. It's also ensuring that we're creating the best possible outcome with uncertainty of events in life that do come about that do happen.

Oh, really good points. A couple of key quick takeaways if I may. You're creating a new business where no business existed before. You have to run the business so that it achieves profitability.

If you steal the P's, meaning you access policy loans and you don't repay them, you're stealing. That's a polite description of theft.

I don't do business with thieves. I know, Richard. You don't do business with thieves and so don't steal the piece. And when you request policy loans, pay them back and put a little bit more capital back into the cash register of your own store. In other words, the simple interest that the insurance company calls for is a direct contribution to the net profitability of that insurance company that you co own. But if you put even just a little bit more capital back in in the form of premium, because that extra interest is not really interest, it's premium. If you do that, you create another shelf in the grocery store to put more products on for more captive customers. And if you go out the front door as the owner of the company and you pay just a little bit more than your customers do at retail, you're building an even more profitable business. And when you go to sell that business at some point down the road when you die, your business is going to be getting a far better sale price when compared to somebody who didn't obey those same principles. And they have an exorbitant loan balance at death because they weren't paying anything back. And now the business sells for less money. So these are key takeaways that Nelson didn't expand on in the book. But we're sharing it with all of you because we were blessed beyond good measure to have been coached and mentored by this man for so many years. Quick value check again. Just based on the things we just shared. 10, you're getting a ton of value in expanding your knowledge of what Nelson wrote in the book. 1. You'd rather be doing something different with your time right now. Go ahead and type it in the chat window.

Oh, I love it.

Definitely see a few tents come in.

Love it. Okay, awesome.

The one thing I just want to reiterate so your statement about the selling the business later. Again, just imagine for a moment you want to go buy a business. When you're looking at a business, one of the first things you're going to want to know is you're going to want to know the numbers. How much money does this business make? And if you're looking at the exact same business in this case, in the example is a grocery store, one makes more money than the other one. Wouldn't it stand to reason that the one that makes more money or has higher profitability will go for a higher price point. It'll sell for a larger dollar, maybe even a multiple. That's what Nelson's really trying to help us understand by, by working with captive customers, family members, etc. Charging them interest and storing that extra, the extra interest into those policies or additional ones, whatever's got room in your system, you're creating a leapfrog effect of additional future value that increases the capacity for every future thing that's going to happen, which includes the eventual death of some member of that family. And another thing I want to highlight in the grocery store, we kind of almost glazed over this, is that the grocery store, Nelson really takes the time to explain what needs to go into creating and building that grocery store or, or acquiring it and starting it, etc. You know, you got to get the land, you have the capital, you got to buy it, you got to build it, you got to fill it, you got to hire staff, you got to pay them before you've even opened the doors and train them before you can even start to take in your first customers. So you have to pay for all that stuff back. And that takes a lot of time. He's talking about the capitalization not only of dollars, because when we say the word capitalization, a lot of times people are brain shortcuts and it makes an assumption around money or dollars. Yeah, capitalization is in many formats. One of the most important formats is time, time, effort and energy. There's a lot that goes into the beginning of that process before you can even begin to start taking customers in and question, I'll just ask everyone here who's attending the call, who here has gone and attended, let's just say a university or college and went and got a college degree. So go ahead, type a Y in the chat box if, if that's you, if you fit that description. And you know, while we're seeing those come in. So if anyone that's gone and done that, and even if, like maybe you're a trade person or whatever, you know, I was like recovering electrician, you've gone and you've spent the time, effort and energy and the cost of dollars for the education while you were there at university, however many years you attended it for, did you get paid for the thing you were learning how to do or did you only get paid for that, that skill that you learned there, whether you're a doctor, dentist, lawyer, whatever it is you like. Did you only get paid for that after you exited university and you were able to find a job in that vocation? That's all capitalization. You put the time in, you put the capital in. Whether you paid for it upfront or you're paying, making student loan repayments, whatever you've got to. That's all vested time and energy so that you're creating an outcome of the potential for a future long term revenue stream. Same idea as the grocery store example. So everyone should be familiar with capitalization because we all done it some point time in our life, usually through time. Maybe not as much in money, but it happens in both of those occurrences.

Oh, such a good point. And the essence is that Nelson wanted you to understand that once you grasp the grocery store example, the rest of becoming your own banker is ridiculously simple. But just reinforce in your thinking, don't steal the peas. That's another one of Nelson's six golden rules. Don't steal the peas. One thing I want to show Rich is the essence of Nelson when he talked about the fact that and he used a tree stump as an example. And I'll share my screen to show everybody what I mean.

I just want to grab one policy out of our family banking system and I just want to isolate some of the things that we've been able to do with that policy since 2012. And Nelson would always say when people would talk about, ah, you know, gosh, I'm going to own this policy and I'm going to own it for my lifetime. And this is going to take some time. And Nelson said, listen man, the time is going to go by anyway.

And so when you're ahead 10 years, you know, 11 years down the road, my goodness, when you see what happens, the financial energy and this ties right back to the grocery store example. So I'll just illustrate a key point if I can. So this showing up okay on the screen, Rich.

Yeah, it's good.

Okay, so this is one policy and Nelson talked about in the grocery store example. He referred to a phenomenon in physics when he said, I think it was on my memory. Serves me right. What was that, page 15?

Yeah, that page 15 in the bottom left hand corner when Nelson said it all reminds me of a phenomenon in physics. Take a pail of water to seaside, I want you at sea level and heat it up to 210 degrees Fahrenheit. All you have is very hot water. But if you heat it up to 212 degrees Fahrenheit, you have live steam with unbelievable power. The steam engine changed the world, but it doesn't happen until you get past 212 degrees. Lots of heat goes into the process up to the boiling point, but the dramatic power comes on suddenly. Here's a sharp example of that. This policy was created in 2012. The annual premium payment is $20,000. The minimum required premium is 15,000. That wouldn't be the case today. The minimum required premium would be much less than that. But at the time, Nelson said, work with what you've got. So the minimum required premium, 15,000. The accelerated deposit option, or paid up additions, 5,000. I want you to see what happened over the years in this policy. In 2012, the policy began accumulating cash value immediately and continues to grow cash value daily. What most people don't understand cash value is not money. Cash value is equity in the contract because the policy is a unilateral binding contract. Now, in 2013, at the first anniversary, a dividend was declared and paid. The policy grew, hence the tree stump. Nelson always asked the question, have you ever seen a tree contract?

Have you ever seen a tree contract in size? It just continues growing. And each one of these rings represents one year of uninterrupted growth. And it cannot go backward. This the second year, we took a family vacation utilizing a policy loan. Second dividend was paid, paid up, additions were added to the policy. 3rd year dividend paid again, paid up, additions grew. Policy grew in circumference. Cash value grows every single day. The very next year, another dividend, more paid up additions. We purchased a car the year prior with a policy loan, we control the repayment schedule. The very next year, we bought another vehicle. We dividends paid again, paid up, additions added to the policy. Family vacation, more dividends. You can see the trend.

The policy never stopped growing. Here's where page 15 is highlighted in my own real world policy example, when we started the policy on day one, we had a starting death benefit of $721,177. Eleven years in, the death benefit is now 1,159,939. And that dividend or that death benefit grows with every premium paid and every dividend paid. The total cash value was $4,500 on day one. It's $237,673 today, and it's going to be higher tomorrow. And every day after that, the loan amount available is $213,906. When I deposit my next 20,000 in October of this year, the cash value growth for the one year, this one year is more than $30,000. So when you ask me the question, how does this compare or how does this combat inflation? My premiums can never go up. So I put 20,000 of premium paid. The annual increase of total cash value is more than 30,000. Does that not beat the pants off of inflation? That's more than 50% of what I paid in. This is Live Steam. This is what Nelson talked about when you get to 210 degrees Fahrenheit. So year four, year five of paying my premium, all that I had was really hot water. But the moment that the total cash value began growing at a rate that exceeded the premium I'm paying, that's live steam. That's 212 degrees Fahrenheit. Now, here's the question I have for everybody. Just tapping into your logic. I want you to type your response into the chat window. When would I ever not want 20,000 of my money residing here? If I put $20,000 into this policy and the annual increase in cash value exceeds that 20,000 and it cannot go backward, it can't be repossessed, it can't be taken away, when would I ever not want 20,000 more of my money residing here? Type it into the chat window. Never.

Remember, everything begins with the way that we think. And some of you who are already practicing this process, I guarantee you, you either asked yourself or you asked your advisor, how soon could I stop paying the premium?

That's like a business owner saying, how soon can I stop generating profitability in my business?

It's illogical.

Because everything begins with the way that we think. And the policy owner's behavior, in this case me, is far more critical than the behavior of the life insurance company. I can stop paying the premium in that policy. I could have stopped paying the premium in that policy four years ago. But yet I choose to continue paying the premium because my money and my wealth must reside somewhere. That's the key takeaway. And if you want to see exactly where our family banking system is at today, let me give you a little bit of insight. And I shouldn't say, as at Today, as at March 3rd of this year.

Nelson said that this is meant to be a system of policies. This is not meant to be a single policy. Here's our system. As of March 3, we got 63 policies, 20 lives insured 76 policies by the end of this year we started with 16,800 a year in premium. This year we'll finish the year at 700,000 in annual premium. Total death benefit was 32,043,000. It's just shy of 33 and a half million today. Total cash value 3,064,507. It is significantly more today. Loans 664,000. That is also higher today. Loan amount available 2,093,000. Also higher today. Have in excess of 55,000amonth coming back to the family in the form of policy loan repayments. This is financial energy that we would have been transferring away from the family. So when you talk about why should I just have, why couldn't I just have one large policy on me versus multiple policies on a variety of lives insured, I just demonstrated that to you. Where do you want the family's financial energy flowing to? Where do you want the business's financial energy flowing to? Where do you want your joint venture financial energy flowing to? You want it coming back to an entity, a system of policies that you own and that you control? Isn't that good?

One of the key takeaways there, Jay, I'd like to highlight, is around multiple policies. You're, you're, you also talked a lot about teaching the kids and bring that up with them as, as well, page 72. You want to make sure you're creating an education path there. Well, one of the things that works really well to help hone in and incentivize that education is the fact that there's a policy or policies available on your children. So the members of the family that are participating in this communal aquarium of money, the money is staying in the aquarium. In the low family system, there's an incentive that's automatically created, whether it's known or unknown. It, it's almost intuitive by nature because there's a, there's a policy that children or members of the family, extended family, are going to receive at some point when you're gone or when you know, as these things transition. So they, they have, among other things that you've done in your family to help create that incentive for them to participate with the system. But that creates an, an automatic, almost intuitive connection and a reason for people to want to participate. So in the example of my family, my kids are younger, they're five and seven, so they don't know about insurance yet. They haven't, they haven't discovered those things. We're just starting to broach those topics, you know, now, to some degree, they do understand that we have a family bank because the banking, the family banking system is where we access money and then we have to put it back in. They know those fundamentals and they understand, or they're starting to understand that at some point in time they're going to be able to access that capital at a later date. So, you know, we're keeping it fairly rudimentary, rudimentary at this point, but I'm planting seeds with them all the time so that they understand that there's going to be a period of time where they're going to be responsible to look after that resource. And I was having a conversation some the other day about, about education and they want to make sure they can provide for their kids, for their education. I thought that's great. I think that's a natural tendency for most parents. My vantage point of it is a little different. It's not that I don't want to provide for them, I want to provide for them, but I want to provide for them the knowledge and experience of what providing for themselves will look like. So that means when they want to, if my kids decide they want to go get a university degree and they want to be a scientist or whatever the heck it is they, they desire, I'll support them with that and the family system will support them with it if they've demonstrated the right capacity. But they will be responsible for paying those loans back. Now, I may decide after they've completed and got their degree and we celebrate all that wonderful stuff, I may say, hey, by the way, you guys knew that you were going to be paying all these loans back. We can set that up and you know, you know, we'll work out a payment schedule and what that's going to look like. Oh, by the way, I've decided, hey, I'm going to take on half of it and I'll pay that back and you guys pay the other half. So there's things that you can do in that. But I want them to understand that they're going to be responsible for it. So they'll be committed to the process of, of, of the education that they choose. And they're actually choosing it versus thinking I can just do whatever I want because someone else is paying for it. It's going to create a tight incentive.

So good, so true. And being able to transfer knowledge of this process along with the money in that exact order is what's going to ensure that you follow Nelson's golden rule, his very first golden rule, which is to Think long range, think three generations past your own. And this is exactly what we do in our family banking meetings, our family banking system, which in both Canada and the United States, you're going to see family banking summits and family banking programs where we're coaching families on how to do this and how to implement this in their lives. And so just some food for thought, something to keep in mind that as you begin with yourself, right, it's much like when you get on an airplane and you know the announcement is made, like in the unlikely event of an emergency, oxygen masks will drop from the ceiling. Be sure to affix your own mask before helping anyone else. So you start with yourself and then you help your family. We are here to coach and help you through that. Through our family banking system, we have a whole method, a whole process that we are going to be providing you the opportunity to invest in so that you can bring this to your family. It's much like anything.

When you make an investment in something, you're intentional, you have the intention of following through. And that's what this family banking system and the program that we're going to make available to North Americans is, is going to be absolutely phenomenal. There's going to be family banking conferences and all kinds of great things where the kids participate in the IBC youth program and they get coached on the process so that when the money, the windfalls show up, they already have an understanding on how to, to implement. Now if you find yourself thinking at this point, hey, this is something I want to do. I either want to start on this journey or I want to expand my program because that's what happens when we present this information. People who are already policy owners, they want to grow their program. Just type the word schedule into your smartphone and just text it to 780-780-809-4599. Text 780- it's the word schedule to 780-809-4599. One of my teammates will drop that into the chat and just create a time get connected with the right person on my team and I promise you it's going to be a valuable use of your time. Thank you, Jindian for putting that in to the chat window. Rich, do you want to hop into twin sisters?

Yeah, before we do that, I want to actually go up to the problem and I want to talk about that a little bit. I think it's important to do that before we, we slide into the ten sister twin sisters.

So that sounds good. Yep, sounds good.

I believe this is page 17 of Nelson's book. So you know, here fundamentally Nelson talks about, you know, the problem that everyone in North America faces. It's, it's who's the pay, you know, who, who they doing their banking business with now basically and the, the interest earnings going someplace else or the potential interest capacity that they could be earning going someplace else versus to their family and where it belongs. And I specifically want to isolate the pattern of spending that Nelson, you know, talks about here in the book. And this is from a great deal of his own research and you know, from, I suspect, I think if we did similar research today, we'd find the numbers very similar. But Nelson wanted to look at, you know, he called the all American young man age 30, making $28,500 a year. So he always said that you didn't need to be rich to get into the banking business. Now my name is rich, so that's okay. But you didn't say you didn't need to actually have a lot of like a really high income in order to do this. What I want to isolate is, you know, he talks about the spending for automobiles. Roughly 20% of out of $100 that you, you make 20, 20 of those dollars go to service automobiles is, you know, often very common. And specifically the interest cost of those vehicles. Well, if you look at the graph, he's not talking about the interest rate, he's talking about the interest volume. You know, that's one fourth of that total line. So that the total payment is the, is the, you know, the tall bar and then this one is the actual interest component of that. So almost one quarter of every dollar spent is actually going towards interest. That's interest volume. He talks about the housing and the housing he's specifically isolating, you know, like the first five, five, six years of a mortgage. Because what's common even still today, although now with the rates rising, it's going to be a very interesting situation. What happens here in the next couple of years as people's five year terms and stuff in Canada begin to renew. A lot of times people are resetting or refinancing or breaking a mortgage contract. You move across town, you go somewhere else, you have a job opportunity, you add a member of the family, the house is too small, these types of changes take place and then people are breaking those mortgage contracts and resetting them, often at a higher value because house prices have gone up or what have you. So this is the interest cost represented in that, in that housing allotment of, you know, 30% of your annual spending. Then he's talking about, you know, living, hey, this is your day to day living expenses in the fun things you do, etc. And the interest costs on that. So that's interest on things like whether it's the boat, the credit cards, the lines of credit, the things that you're using on a day to day basis. And then we're talking about savings. Now in Nelson's example, he's trying to give everyone the benefit of the doubt. He says ideally everyone is saving 10%. Well, that's what we're told. So everyone must be doing it right. Well, in his experience, that actually wasn't the case. He found a lot of people weren't, you know, saving 10%. It does range. Everyone's in a different situation. But what was really interesting about this is he says, look, if all we could do, all we could do is eliminate this interest cost right here on the living side and we could go and move that onto the savings category. We would add 5% to it, to the savings. So if you're saving 10% and you increased it by 5%, how much additional savings did you, how much did your savings rate go up? Somebody type in the chat box for me. How much do we actually increase the savings.

To see from a couple people.

We were saving, we were saving 10% and we increased it by 5%. How much do we actually increase our savings rate? Boom. 50% percent. Because we went from 10 now to 15. So that's a 50% increase from the original amount we were saving. It's a huge, huge game changer for a lot of people. And then if you were able to take that, that power, that financial potential and begin to continue cascading it to create volume and velocity in a system or a warehouse that was efficient and allowed you to access it, Nelson's trying to teach us that would be a really powerful example. So ultimately this is, this is the part of the problem is that worse we're earning the money and the money's disappearing to other people. We want to be able to harness and control that to create, you know, Nelson used an example of an airplane analogy. We want to be able to, you know, and this, this all American young person is flying into a headwind and we want to start creating a tailwind where we can take these interest dollars and we can tack them back here into that savings value to create something larger and bigger for your future by controlling the circumstance. Jason, anything you want to touch add on to the problem?

Yeah, the, the problem is, is that you're doing all the work and everyone else is getting all your money.

People ask the question, right? We get asked the question, like, how much money do I need to start this process with? Or what is a good starting point? Once you understand the problem, the solution will become clear, and you'll know exactly what to do. And if it's true at present, which it is for everyone that we initially meet with, all your money is flowing through the books of someone else's bank. And the fact of the matter is, is that the only money that you get to spend is what's left over after income taxes.

That's all that you get to spend. And so create the entity.

The policy, or the system of policies, ideally with a mutual company.

Understand the process.

Begin to simulate it by implementing.

Okay, so we had step one, step two, step three, step four, don't steal the piece. Step five, repeat steps one through step four.

That's those. That's the basic understanding.

Isn't that good?

I'm pausing, like, intentionally because I wanted to have some kind of dramatic effect.

Rich.

I was.

Okay.

All right.

What do you want to do? Let's go to. Let's talk about the twin sisters for a second.

Okay. You want to see it on page.

40 or 41 at the graphic. You want to go straight to the chart?

Yeah, if you just dive. Just go straight into the chart on 45.

And I want to preface this before you display the chart.

Nelson.

Taught us to understand the characters in the financial play. You've got the depositor, which is all of you on the webinar. You deposit money somewhere. You've got the borrower, which is also all of you on the webinar. Because you're always working with borrowed money, Even when you pay cash for things. You've got the banker, who's the character that controls access to someone else's pile of money and sets the rules. Right? Whomever has the gold makes the rules. And then you've got the bank owner, who has an expectation of receiving proceeds called profit in the form of dividends or more ownership in the company. And so, keeping those four characters in the financial play in mind, let's pull up page 45 and let's take a look at this example that Nelson created. And he. What he wanted to do is he wanted to isolate people who were saying, nelson, listen, we don't need the life insurance policy as the entity. We can use guaranteed investment certificates or certificates of deposit. We can borrow against those, and then we can achieve the very same objective, which is to go about purchasing whatever it is we need to buy throughout our lifetime. And Nelson said, oh, okay, I understand you're a little bit concerned about loans, is that right? And people would say, yeah, like as a consumer, I feel like borrowing money is something that creates some stress. It's not something that I'm comfortable with. And Nelson said, okay, well, why don't we take loans off the table for a second and let's just compare and we'll do this. In an example that I've named, the twin sisters will have one twin sister who's going to save money on the books of someone else's bank in a certificate of deposit. And that certificate of deposit is going to be guaranteed to earn five and a half percent interest that is taxable and taxed at the highest rate.

Twin sister B said, well, I met this guy named Richard and he told me that my money must reside somewhere. I understand the problem, the solutions become clear to me and I'm going to put the very same amount of money into a participating dividend paying whole life insurance policy. But I don't want to access policy loans. I don't like policy loans. And Rich said, well, that's fine, just put your money into the policy. That's okay. Let's see how we make out. So each twin sister decides to commit $5,000 a year to the process, the program for seven years.

In the first year, twin sister A, the certificate of deposit or guaranteed investment Certificate Sister, puts $5,000 into that product, that financial product, and a year later has got 5,200 bucks. That's really good.

Twin sister B, who decided to go down the path of purchasing a policy from Richard, only has $1933. So both twin sisters are out to lunch together and they're eating some of Carrie's amazing cupcakes and things that she bakes on our team. And the GIC certificate of deposit twin looks at the ibc, the infinite banking concept twin and says, I think you need an immediate psychiatric evaluation. And that twin says, why is that? The other twin says, let's just compare balances. I've got 5200. You only have 1933. All my life I've been telling you I've been right about everything. Here's another sharp example of that. And twin sister who implemented infinite banking said, just give it a little bit of time because Richard told me about this whole instant gratification thing. I really buy into his philosophy and I've rethinked my thinking. Let's just give it a little Bit of time. So we go all the way out to year seven. They've been having lunch every year. And every year the gic, the certificate of deposit twin has been rubbing it in the face of the infinite banking concept twin saying, saying listen, year after year I keep trying to get through to you to tell you that you're absolutely insane for becoming your own banker. How have you become your own banker? And you watch the video that told you to be your own bank. I thought you bought an infinite banking policy. And the twins like, hey, look.

Again, I'm just going to be aggressively patient. Let's see how we're making out here.

Aggressively patient. Is that a real, is that a real. It sounds like a, almost like an oxymoron.

Well that's, yeah, I, I utilize that, I utilize that. That's a copyright trademark, used by permission only.

I just picture someone with a, with, you know, twiddling their thumbs with this like really frowny face going on.

Okay, so Rich, starting in year eight, what happens?

Well, in year eight, it's time to go and buy some cars. So the assumption here is that they haven't touched this system at all for the beginning. Because Nelson says at the beginning that you have to recognize human factors. You have to learn how to conquer Parkinson's law. Show me someone who will put money repeatedly into a system for seven years without touching it. I will show you someone who has conquered Parkinson's law. So really important. That was one of the fundamentals. So both of them are going to do the same thing because they need to capitalize, they're building up something so they have a reservoir to work from that they can do in perpetuity. So here they go and buy their first car. And he did this all off a trade in package that was actually based on a Chevy Malibu that his wife purchased at the time. And so they had their existing vehicle, they traded in at the dealer after the trade in amount was left. The financing balance so that they would have been financing would be $10,550. So here we actually aren't, they're, they're self financing. So you can see that the balance of the account goes down in both scenarios because the infinite banking sister also did withdrawals. Both are taking, they've built up their account value now they're actually, you know, the GIC sisters redeeming some of those GICs, pulling their value out. They're not earning interest on that value, they're paying cash for the balance of the car. And then they are each going to commit car payments for a four year period of time and they're going to put those car payments back into the respective systems. So the IBC is putting it back into premium, the GIC sister is putting it back into new GICs basically each and every time. Okay, so they continue to repeat that process and if we scroll down we can see, okay, there's 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11 vehicles that they purchase over their lifespan. And we'll summarize that in a moment. So, but the process is the same. Nothing changes. They only put their original $5,000 a year in. They stopped when they did that for seven years. They put 35,000 in original capitalization, they did withdrawals. They continue to be an honest banker and make car payments back to their system equivalent to what they would have had to pay some other finance company. And they, they quote, unquote reinvested that or put it back into what they were using the GICs or the policy as premium. And then those values continue to increase. There's a couple of interesting observations that we do need to look at here. And you know, for everyone that can see the screen, just take a look at the values in the account and I want everyone to type in the chat box. At which point does the IBC sister have a larger account balance than the GIC sister? So go ahead, type that in the chat box, let us know.

I'm seeing year 15. All right.

So here 59,000 versus 48,000. Now, you know, not everyone can see the entire screen, but I want everyone to just go and pan down and continue looking down and let me know at any point in time do you see the CD sister catch up.

So once, once the IBC sister crosses that level, the other twin never catches up. She's ahead for the rest of time, for the rest of her life. That's the power of that live steam that Jason was talking about earlier and he showed us the example of his own family system. She never catches up. So it's really critical to understand that yeah, she was far behind for that first 15 year period. They started getting closer and closer, but it wasn't until they hit the end of that year 15 where she overtook and then she began to do continue on forward. So it's kind of like that, that old fable of the tortoise and the hare, if you guys think about. And in both of these examples, you know, again, we're talking about something that's growing tax deferred here in the CD sisters example, we're showing the Net after taxes paid because there's going to be a, you know, a W2 or a T form, a tax form sent every year for that interest earnings. Whereas the infinite banking sister isn't going to have a tax form in that format. And a question I have for everybody here. We don't know the number on it and it's not important about the number. I just want the question to go out. In both of these examples we're talking about the same capital flow, the same flow of financial energy. But what is the death benefit for the GIC sister the entire time?

It's only whatever the account balance is. The infinite banking sister has the a death benefit plus the account value working for them. That's a really key distinct distinction I think it's important to make. So I'm going to go ahead and scroll down to the bottom and we want to summarize what happens here. I think this is going to be, this is kind of always where the rubber hits the road I think in this scenario. So the we go down to line 50, sorry, 51 I should say. And this is after they've made their final car payment. They've bought their final car. No more car purchases after this point. The CD sister has $259,000 of accumulated capital and the infinite banking sister has 964,000. So the gap between these two, and I'll just round it is $706,000.

That's the difference between the two people. But they did the exact same thing. They followed the exact same flow of financial energy. The both of them are going to begin the process of withdrawing a retirement income. They're going to take the same amount. Obviously if you've got 260 grand and then you're taking 50 grand a year out, you're going to deplete that balance pretty quickly. The earnings on that account will just won't keep up with the withdrawal rate that you have. So you'll see that the, the CD sister runs out of money. She doesn't even have 50 grand in that final year and she depletes her capital fairly quickly. Now one thing I want to isolate here I think is really, really important. Both of these twin sisters came out really, really well. They both self financed cars, they used a system, they practiced honest banking. They both created an environment where they accumulated the equivalent value greater than the equivalent value of all their car purchases. In other words, they had all the money that they spent on vehicles available to them in the account value or greater than. So they, they, you know, that's where we would say that they recaptured the cost of those, those vehicles. It didn't mean that they got rich buying cars. They still had to pay for those vehicles. Right. But the system created an environment where equivalent greater than equivalent value was still stockpiled for them to utilize as a passive income. So both of these people did exceptionally well. Would you guys all agree? Type of Y in the chat box if you agree.

Getting a lot of yeses.

Now I got. I want you to jump in here Jake. So I think you've been to do it.

Okay, if you go right back up to the top Rich, here's, here's something that Nelson wanted everybody to grasp in this example because he wants you to rethink your thinking. If you look at the GIC or CD sister.

She is depositing that money on the books of someone else's bank. That bank has already been capitalized. It's already been in business for a very long time. So that's why she's got 5,200 after year one and 10,608 after year two, et cetera, et cetera. The infinite banking concept twin sister is starting a new business where no business existed before.

She is paying premium into a life insurance company that she co owns. Her money must reside somewhere. So now if you scroll all the way down to passive income time, Nelson asked a very fundamental question. If you understand the four characters in the financial play, you've got the depositor, the borrower, the banker and the bank owner. His question for you is when you compare 964,000 to 258,000 at year 51, he asked what was the banker's reward for all of her effort?

The difference between 964,000 and 258. Because the twin sister who's implemented the infinite banking concept without accessing a single policy loan just purchased a policy and stored money there.

Practiced the concept to the degree where the money that she would have transferred away to someone else for a car, she's paying in premium, not policy loan repayment. What was her reward as a banker for that behavior? Because the policy owner's behavior is far more critical than the behavior of the life insurance company. And Nelson went on to say, if you can imagine for a moment, if I introduced policy loans into this equation, the twin sister who purchased the infinite banking concept, who I was about to say, oh my God, I was about to just punch myself right in the face. The twin sister who purchased a policy to implement the concept.

How much better did she do? Because she's all four characters in the financial play.

The twin who is just the depositor and the borrower. Remember, no loans, but you're always working with borrowed money because you're giving up the opportunity permanently to earn interest on it.

The twin sister who was only two of the four characters in the financial play didn't make out as well as the twin who was all four characters. Remember, Nelson said, your money must reside somewhere. We're dealing with the exact same amount of input in money, but the output and the outcome is much different. Much, much different. That's what he was trying to get across in this twin sister example. Isn't that good?

And, and Nelson wanted to, you know, because he had heard it from people in years previous, trying to explain this idea to people. Oh, well, why would I go do this when I could just go do that? And people would really struggle with the word loan. We have a. People get a mental baggage connotation with words. The word loan being bad. Loans are bad. Loans are bad. Loans are bad. Well, no, that's not true. If you're the borrower, loans might be bad, but if you're the bank owner, loans is good.

That's right.

Loans are an asset. Every loan is an asset on someone's balance sheet. It's a liability on someone else's. So it's a matter of what side of the equation of the balance sheet are you sitting on.

If you have a bit of an issue, like Jim Carrey did, and me, myself and Irene, like you might really struggle with that being different characters, but it's really just a way of thinking and it's a way of behavior. Your behavior is far more critical. The insurance company is going to administer this contract with no loan activity. That's exactly what Nelson is showing you here. So super, super important to grasp that and something that is often overlooked when people first read his book.

Well, I want to go further to behavior before we finish this, Jay, because here.

The key behavior. There's lots of great behaviors here, but one of the critical key behaviors is this contin Honest banker repayment schedule. These are. Both of these individuals are not stealing the piece. They're returning capital on a schedule at a regular basis to refund intentionally their pile of capital for the same purpose on a repetitious basis. This behavior of the car payments and, and recapitalizing to create the outcome for the next major purchase is one of the most critical components of the behavior. That's what Nelson was telling us in the grocery store. So we're seeing an example of that here in this chart. Because if they hadn't done that and then they went, they wouldn't pay cash for this car because they have this big pot of cash. Well, their balance would have dropped to 34 grand. Yeah, they would have earned a little bit of interest. But then when they went to buy the next car, the balance would deplete and eventually that balance would go to zero and they wouldn't be able to continue that process. So the repayment and the recapitalization for the next capital asset, the next thing you're going to acquire or the next major purchase is extremely important. It's integral to, to the fundamentals of what you're doing in life anyway. Someone's going to get the flow of that money. The more intentional you are about it, the more capital accumulation begins to happen to your advantage. Yeah. God, I love this example. So talking about the income draw here, I think is really important. Both are doing. Again, in this example, Nelson's not talking about policy loans. He's talking about withdrawals. Here they both take out a retirement income. Obviously they both did well. They both got more than the capital they put in. One thing I really want to highlight, there's a, there's a summary here down here at these totals. If we add up all of the car payments and all of the original deposits, the $5,000 a year for seven years, the 30, 30 a year for all the car payments, the total amount of money in the capital inflows, the flow of money going into the system for each sister is $168,000. However, they used money, they did withdrawals, so they actually pulled out 116,000. When we do, as Nelson would say, the third great arithmetic, we take this number and subtract this number. The net amount of money that they have left in that system is 52, 2, 70. This would be their net real cost. That's the net amount of money that they still have tied in because they put it in and they withdraw it along the path. So They've only got 52 grand in this deal. Well, the very first year, they each take out 50,000. So pretty much they get almost all of their, their net capital back at that point, which means every year afterwards was all gravy. That's the, that's the advantage that they created in both, both of them for creating the system. So when we say recapture doesn't mean that you're getting the money back for the cars. You still had to spend the money in the cars. The car dealer got the money. Okay. But your system creates an, a capitalization impact over time where the equivalency of that money is available for you to reuse at a later date in life before you're dead. Oh, and if you're dead, well, the money's available then too, usually a lot more of it.

That's a really good point, Rich. And he also, Nelson also shared with us.

That the 50,000 for the, the twin sister who purchased the participating dividend paying whole life policy, the 50,000 coming out from year 52 onward, that was actually dividend withdrawals. And the total cash value continues growing because the total cash value must match the total death benefit by age 100 of the life insured in Canada and age 121 of the life insured in the United States. So, so every single day the total cash value kept increasing. But what Nelson was showing is no loan activity. Even in passive income time. He's indicating that the 50,000 coming out each year is just dividend withdrawals. Is he paying tax on that? Absolutely. But his, his philosophy was to say, Look, I'm getting 50,000. I'm going to take that money out in the form of a dividend withdrawal. I didn't do anything to earn it. I have no difficulty paying tax on money that I did nothing to earn. Had I introduced policy loan activity, then there would have been no taxable event triggered and the outcome in terms of the cumulative amount inside the policy, both while the twin sister was alive and when she died would have been much higher. So again, it's just.

And policy loan activity or the equivalent of collateral loan activity.

Yeah. In Canada, collaterally assigning it tax rules wherever you live.

Now, one more thing I want to highlight because you mentioned a good point there, I'm going to scroll back up to the previous page. So on page 44 there's an addendum section that was introduced here. Now, my first version of this book, which I have in front of me also, it's all highlighted it, it didn't have this addendum. I had this page, but the page ended right here. So I actually had to rip that page out of another book. And when I went and got my book bound, you know, and you know, what do they, what do they call it when they put the COVID on? Anyway, when I went and had this thing bound, I inserted that page. So I had the copy of the addendum as well. And on the addendum again, he says right here that he would have recommended policy loans to buy those cars. And he goes on to explain that, and I think that's a really important piece of Nelson's book right here, is that there are only two hard, fast rules in building and in carrying out this concept in the building of it and the implementation. Don't be afraid to capitalize. The more you put in, the more you get back. Tax free passive income time. Don't make policy loans without making provisions for paying them back. That is the equivalent of stealing from your system. So what now? You know, a lot of people will do, and a lot of our clients, they'll do an amortization chart. We always recommend an amortization chart and a regular payment schedule. It may be, hey, if you're, maybe you're, you're purchasing an investment or a business structure and then you're going to create revenue stream and that revenue stream is going to make the repayments, whatever that is, but have a clear intent of how you're going to repay that back. And you should have it documented because if you did business with a regular bank, you better make sure you can guarantee they're going to make you sign a whole bunch of documents, lots of them. So you should be prepared to do that for yourself so you can manage and track the commitments that you make so that you can be successful in this process. Anything to add to that, Jay?

I think that's really well put and it ties perfectly into, I think we wanted to dive in a little bit into the equipment financing example as well because I think it's so poignant and so incredibly important. And before we do that, we can have just a brief discussion around.

The human condition and what is so vital to understand about the human condition that Nelson describes in the book. I'm just going to flip through here for a second.

Rich, help me out. You've got the PDF copy in front of you here.

You want the Parkinson's past?

No, it's past page 28.

Willie Sutton is 2931's a golden rule.

Yeah. Understanding, you know, that there are some pitfalls in the human condition and the human condition or these human factors that Nelson talks about in the book is that what's so important to understand is that we can't illustrate them.

We can't illustrate Parkinson's Law. We can't illustrate Willie Sutton's rule. We can't illustrate use it or lose it. But it's really so important for people to have a fundamental grasp of what Nelson wanted us to, to take away from those human conditions. What comes up for you in all your readings of the book? What have you taken away from that over the years.

Well, I'm going to give you an example, actually. It's something that Vern. Vern and I were on with our team recording a reaction video to some interviews with the University of Toronto that some of our team members did earlier today. And it was quite fascinating to hear people's thoughts on money. And Vern shared a story about some clients he spoke with here just this week where they have been proactively sending money back to policy loans and getting used to it. And the result is that behavior has actually been up. More and more money has been accumulating than they anticipated, because through the process of doing that, they're realizing that they're getting very focused on repaying their policy loans, and it's changed their behavior. And that behavioral change has increased their savings rate, the speed, the speed and the volume of saving that they're doing, because they're, they're almost gamifying their financial life to some degree. And the result of that behavior means there's more money staying with them than was previously just disappearing in their household budget. And those are things that are, you know, they're, they're psychological in nature and, but they're, they're true. And they happen for a lot of people. And so these human behaviors have a direct correlated impact to your future outcomes financially. So the more that you hone in on practicing and implementation of good financial patterns and behaviors, and you can do that in the household setting, clearly you're going to end up with more capital than someone that didn't do that. And it's just a result of good behavior. So that is, we're seeing that with people where by, by implementing the process, some, sometimes as an example, you take a policy loan. Well, because it still has that word loan. And you may have a mental, you got some past world mental baggage with that word. Whatever it is, you know it's there. And so in your gut, you know, you know what? I really want to pay that down. And so because you know you want to pay it down, you're spending less money at Tim Hortons, less money at this thing, at that thing, and you laser focus yourself on the objective of, of paying that down. Meanwhile, the cash value is going up. So you start to see, like, unique things happening in your world where suddenly more capitalization is taking place. And then opportunities begin to appear. Whatever those opportunities are and those behaviors is what Nelson was trying to teach us about and how they overlap with one another. And then they begin to show up financially in your life because of the way that you're using them.

Now, with that in mind, I think Jay, you wanted to. You mentioned the twin sisters and I. Sorry, not the equipment financing. And I do want to jump to equipment financing, but I actually want to Skip to page 65, which is just past that. And he talks about essentially, again, this is a little bit mindset related, so I'm going to bring that up on the screen and then we can circle back to the actual example of equipment financing.

And while you're getting there, Rich. So again, this comes up. This is a human condition, right? We just had a great question posed from one of our attendees. What happens if I do a dump in? I'd love to see a scenario where you're showing that this all goes back to the human condition. I want it now. I just want to transactionally put something in there and then set it and forget it. That's not becoming your own banker. That's purchasing a life insurance policy with a single premium and then leaving it alone. So that has nothing to do with becoming your own banker. And it's one of the pitfalls of the human condition.

You've got to understand the problem. You're doing all the work and everyone else is getting all your money, not just a dump in.

So, Benjamin, you've got to read Nelson's book and then put it down for a few days, pick it up and read it again, put it down for a few days, pick it up and read it again. And if you understand the grocery store example, the rest of this is going to be ridiculously simple for you. If you don't grasp the grocery store example, call me and I'll talk to you about it. If you still don't grasp it, I'm afraid there's no helping you. This is not about dump ins and how we can sensationalize a policy illustration to show you that if you put 100% of your financial resources into a policy on Monday morning, you've got nothing to worry about for the rest of your lifetime. That's not what we're describing here. I would encourage you to take those words dump in and dump them out of your brain and then develop a deeper understanding of this concept. Because I promise you, Benjamin, when you do that and you really truly understand the problem, the solution does not include dump in and you'll understand exactly why. Go ahead, Rich.

So what's you know, this page talks about, you know, hey, how do I get started, etc. Well, Nelson talks about the importance of desire. It goes back to behavior. So I want to bring this up because we're having that behavior type conversation. Without that desire, you probably can't do it. And everyone is already spending all financial resources on what he or she thinks is best. There has to be introspection at this point and a commitment to get out of financial prison must be a burning passion. So this is where we recognize that people who are exploring this process, yes, you need to understand and learn about it. You need to do the homework to, to bring this in, to make that decision. Is this something that you want to do? But you also have to get clear why it's important for you to do that by understanding the problem and, and then how that's really going to impact you going forward. And he goes on to say that it requires a change in priorities in life. In other words, adjusting your budget or your. The way money is flowing through your life. That's where our coaches come in to help you figure out how to implement that in your specific situation. But then making the commitment to go ahead and start doing that, so helping you find the money to begin the process of capitalization, etc. They mentions finding a life agent or someone who's familiar with the concept. Of course, we obviously someone who's authorized Nelson Nash Institute practitioner and in all probability those people will be familiar with the questionnaires and they'll be able to help you figure out how you're spending money in cash. This happens all the time. We find out there's things happening in people's budget where all of a sudden, oh, well, what about this? What about that, what about that? And all of a sudden, over the course of a year's budget, we find a bunch of capital that's flowing somewhere that could be redirected and repurposed for the concept while still being able to implement the usage of capital and other things in your life. It's extremely common. Our coaches are incredible at that. But the real reason I wanted to highlight this page is that it's going to take years to get started in commitment. And it's like developing a regimen of exercise. You got to go and see where you're at and you got to make a goal of where you want to be and then you have to put in the work the coach can't exercise for you. Nobody can do that work. You have to do the reps, lift the weights, et cetera, to see the result that you want to achieve. That's what implementation is. Like Nelson said it was becoming your own banker, not someone else. Is my banker. That's already the case. We want to put you in the position of control where you are the banker. But it can only happen if you take on that commitment. The other thing I think is really powerful about this page, which I love, it's one of my favorite things. He talks about getting involved in a wealth club that meets periodically. Here you have the support of others working their way out of darkness. Be sure to include members that already have a track record of practicing the principles of infinite banking concept.

We do that in our quarterly group client coaching.

It's so important even you even being on this, this session today and being involved in the chat and connecting and communicating, you're learning together. This is how community is created in this environment. And our quarterly client coaching is a perfect example of that. And when we have our regular live events. Jay now that we're back to the live events in a post Covid world, I mean in Toronto we had 200 people there. In Edmonton we had almost 200 people. In Calgary I think we had 75 people. So when we get people together in these rooms, relationships are created. You're going to bump in to meet somebody that, that is going to inspire you or an opportunity is going to be created because of those relationships. It's so critically important to be involved in this community once you make the decision to get started and be a part of it. So again, a lot of great stuff here on this and with that in mind, we can circle back to the. Well, I guess the only other thing I would mention here is, you know, basically Nelson saying, look, this, this part of the book, page 65. He kind of says this is almost like the, the end of the book. But the remaining components are to help stimulate your imagination, to help you figure out how you can capitalize your system. So Everything past page 65 is extremely valuable, but it's really about helping you craft and think through the ways that you might go about by seeing some other examples, starting the implementation journey for yourself.

So good. And here's what we're going to do. We've got people who want to get on with their weekend. Hopefully they're incredibly inspired and maybe at some point over the weekend might pick up their copy of the book and read it. If they haven't, if you haven't purchased the book yet, if one of our team members can put in the Ascendant Financial Bookstore, we'll courier the book rate to you. But don't just order one order to @ minimum get the book in the hands of somebody who you think would benefit from the gift of what we do. And here's what we're going to do. We're going to do a whole session on the equipment financing example. So we're going to do that as a standalone session. We're going to invite everybody who attended today. Tom, we're going to invite everybody in our database to come out and attend that session. And Rich and I will do an in depth like this will be an overview of the equipment financing example that you have never seen to the extent that we are going to go in explaining it and it is going to be incredible. And so what we're going to do real quick is.

Because to run, one of our teammates is saying, you know, people are indicating they've, you know, they've got errands to run, kids to pick up, a weekend to get going on. So we're going to schedule a follow up session. We're going to do a deep dive into the equipment financing example. So we're going to leave you all in a bit of suspense, wanting more. But in the interim, you've got to take action, otherwise nothing happens. So if you just text, everyone knows how to do that nowadays. Text the word schedule to 780-809-4599 again, that's 780-809-4599. I'll make sure that you get connected with the right person on my team. Whether you're Canadian or American, we're going to take care of you and we'll help you get started on this journey or we will help you grow or amplify.

Your system, your program. And this happens every time we create this content and all that we're sharing with you is everything that Nelson taught us. We were just blessed beyond the definition of good fortune to have spent so many years with him. And we think about him, we miss him every single day. And I just wondered, Vern, if you were on the line with us, were there any great questions that came up that you felt maybe we could just spend a couple of minutes on and just, just jam on this recording. We were, we were streaming live around the world on YouTube. It's going to be put into our client portal, which is a password protected portal. We will share access to a replay and then we're going to go ahead and we're going to market this as well. So we're actually going to sell this recording and give people the opportunity to get a deeper glimpse into the essence of the book. But Rich, I was just sharing with everybody, we're going to do a standalone session just on equipment financing. And so we'll get that booked and we'll get it out to everybody who attended today and everybody in our database. Go ahead.

Vern. Yeah, thanks, Jason. I appreciate that. There's actually a lot of interaction, like I said in the chat, and many good questions, and our team did a great job of answering them as we went along here.

There was a question that I thought was really good to answer here because it, it just points to the importance of our behavior versus the life insurance company's.

Behavior.

Yeah. And so Peter had said, let me just try to find this question here. A little bit earlier.

He had said, I like the process and the multi generational potential it presents. Any process has pros and cons, slash risks and benefits. Can you present pitfalls, risks that could occur with this.

Process? Thank you.

Yeah. The first pitfall would be not doing.

It.

Absolutely. That would be the very first pitfall. The second pitfall would be stealing the peas. When you know the significance of not doing that, that's your choice. And if you are in the process and you start stealing the peas, you. And you wake up one morning frustrated because you're killing the very business that you want to provide for. You don't point the finger at anyone else. Look in the mirror, raise your right hand and slap yourself in the face. Because you're the only person who's accountable for.

That.

Yeah. Yeah. And that's, that's basically what I had said. And I pointed them to. I can't remember specifically. Rich, help me out. Page 16, is it page 19, First National bank of Midland, Texas. So I pointed that out as well. I said, you know, at the end of the day, you know, I believe the risk resides with me over here. The policy owner, like the life insurance company is just going to be just fine. If I'm the one not capitalizing my system, if I'm not repaying my policy loans, if I'm stealing the P's, my system could.

Implode. Here's the, here's the deal, Vern. Sometimes it's important to ask the real question.

Like, is that really the question that this gentleman wanted to.

Ask?

What do you think the question.

Was? Well, it's. What is it really?

Like, is it what happens if the life insurance company fails? Or what happens if the sky falls and I don't have a hard hat? Like, what. What is the real question? Is this too good to be true? Like, I, I really admire and appreciate questions because everyone's questions are the best answers for everyone in attendance. I Respect that. But I'm just wondering, in that particular question, my spidey senses tell me that's not really the question.

And this isn't my first rodeo. And so I would just encourage anybody in the Q and A window, just ask what you want to know. What are the pitfalls? Talk to the life insurance carriers who have been operating in Canada for the past 178 years and ask them that question. These are companies that have never failed to produce a divisible profit. It's never happened. So it's not coincidence, it's an engineered outcome. Is that a.

Pitfall?

I would say, you know, the pitfall, Jay, is actually in the human conditions. And because the pitfall is not following through on Nelson's, Nelson's instructions in the book. Right. And getting, getting pulled down some other financial rabbit hole and then thinking that that's the next best thing, getting really excited, not making a long term commitment, thinking that this is going to solve all your problems and then you yourself not doing anything to help that along by adjusting your.

Behavior. So there's the, there's the pitfall. The pitfall is that you're human and you're fallible. Yeah, that's a, that's a pitfall. But if you just purchase a policy.

And you pay premium and you do nothing more than that.

The insurance company is going to administer that contract and you are going to achieve a very good outcome. But the moment that you begin to introduce human behavior, you can create a far better or a far worse outcome. That's why it's important to have a great coach. And so a pitfall would be not having a great coach, somebody who just wants to sell you a life insurance policy and tell you that you're infinite banking. Like some of the stuff we see out there on the Internets. Come buy your infinite banking policy. Get your dollar doing two jobs at once, get rich buying cars, all that stuff. Be the bank, beat the bank, kick the bank in the face. Like whatever it is that's showing up on all this marketing, that's just sensationalizing the message. That's all that it's doing. And Nelson told us repeatedly, infinite banking concepts does not need to be sensationalized. The process of becoming your own banker is ridiculously simple. And so we shouldn't take such a great thing and sensationalize it.

That's another pitfall, is sensationalizing the concept.

We tell people all the time, Rich, you could attest this, we've been saying this for years. You're going to get to the point as a policy owner where you put this into a category that's right up there with watching paint dry and grass grow. It's so simple and it can become so boring. The human condition, we want to be stimulated. We want stimulant. So we want to pursue the next best stock or the next greatest thing, whatever that is, because we crave stimulation.

When you implement this process of becoming your own banker.

Let the stimulation be the truth.

Your net worth grows every single day.

Isn't that.

Good? Really good. I thought of another pitfall, Jay, but it's also human behavior oriented because you mentioned coaching. Maybe not having a good coach, but the other pitfall is not communicating with your coach. You don't book a meeting, like at minimum once a year to connect and talk through what's going on. A bit of an update. What's happening with you? Some life changes. Are you repaying loans or not? You know, I met with a gentleman. Well, I shouldn't say I met with him. I received an email for someone that I've been trying to meet with and sending him notifications to book in my calendar for multiple years, and he hasn't booked a meeting with me in over five years. Well, look at that. I log in, I look at his policy, and he's got outstanding loans, most of it. And he, I look and I see he's made zero loan repayments in the eight or nine years that he's been a policy owner. So he's taken all the P's out the back door. Yeah. And he wants to wonder why the system's not working. The system is fine. He's the, he's the cog in the system that's making it a.

Problem. That's.

Right. He's following through. He's not staying educated. He's not listening to our content. He's not getting engaged. He's not constantly looking to grow and better himself mentally around the usage of this process in his life. Right. Of course he's going to have, he's not having the same outcome as someone who is doing that. If you had two of the identical policy, same person, twins, and one of them's coming to meetings regularly and attending a webinar once every six or eight months and coming to a live event and then the person that never books a meeting, clearly you're going to see different outcomes. They're not paying premium the same, they're not paying it in the same frequency, and they're, they're not doing loan activity in the same.

Frequency. Here's A perfect analogy that ties to that.

Rich.

Not. Yeah, here's, here's perfect analogy that Nelson used in his book that ties to this.

You can take.

Two people and send them out to buy the very same car. Now, let's presume.

Person A and person B just happened to get car one and car two off the assembly line. The very same car. Engineered the same way, constructed the same way. Both cars roll off the assembly line at the very same time. If we were to take a look at the condition of each of those vehicles five years later, do you think they're going to be identical?

Not even.

Close. Especially if one of those drivers is.

Me. Especially Richard. Like, we all know people who can get 400,000km out of a car and you sit in it and you're like, did you just pick this up off the lot a few days ago? Like, this is still in mint condition. And then you all know someone who can't get 40,000km out of a vehicle without it looking like it just came through a demilitarized zone.

Who's responsible for that?

The person who sold you the car?

The dealership who bought it from the manufacturer? The manufacturer who built it? The suppliers who provided the parts that put it all together?

No, it's the person who got in the driver's seat and turned the key every day.

So we, the reason why we're sharing this is because what we're doing.

Is we're helping people to become their own banker. We want clients to be dependent, not in. Not to be independent, not dependent upon.

Their coach.

We want them to be independent so that they can truly understand and embrace and live the essence of this amazing concept and this process. We're living proof of it. People must have thought rich when you and I got going in our early days, like these guys. Oh, yeah, well, they'll probably be doing something else six months from now.

That was, that was back in July of 08 for me, in August of 09 for rich. Look at where we are today. Still specializing in the very same process.

And now teaching North Americans how to do it, not just.

Canadians. I've done this longer than anything else I've done now at this point other than.

Breathe. And so, hey, the point is, is that you need someone to help you get started. And why not work with the gold standard?

Hey, I'm a board certified cardiac surgeon and have been for the past three weeks.

Hey, I'm a board certified cardiac surgeon and have been for the past 16 years.

You have an option to choose which surgeon you want performing that surgery.

I know who your family would pick.

But who would you choose?

This is all that we do. And I will say and shout from the rooftops. We're extremely good at what we do, as evidenced by.

The proof being in the pudding.

We, we're very flattered that a number of people in the industry have replicated our approach to teaching this process. Keep going, keep growing.

Because we're going to do that.

And we're going to continually develop a deeper understanding of what the clients we have and the clients we want to have truly value. And then we're going to continue delivering on it.

Anybody who's on this webinar still, if you're in the industry, you're looking for a place to hang your shingle and you want to contract with Ascendant Financial is the only managing general agency in Canada that specializes in this process.

Your wealth must reside somewhere. Your license must reside somewhere.

Who do you want to be in a lifelong career relationship with a generalist or a specialist?

Take your pick.

And for everyone who wants to implement or who wants to grow their program.

Text the word Schedule 780-809-4599. You'll be glad you did. You'll get connected with the right person on my team and you'll be well taken care of. I, I can promise you.

That.

Awesome guys. Amazing. I think the team did a great job answering most of the questions.

And oh, our teammates are.

Awesome. There was a sharp group there. They were asking some pretty in depth questions. So. But there's some people who are already practicing and whatnot. So it was pretty, it was pretty good. And I think everybody really appreciated you guys expanding on what Nelson shares because you know how it is, anytime you, you read text, it can be misinterpreted. So yeah, it's really good to expand on all.

That. I think we get Nelson's book doesn't need to be reviewed in a page by page basis. And I think that, you know, I'm kind of happy we went about it in I guess a little bit more of a chaotic fashion because for me that's how I read the book. Now I don't usually, I don't really read it cover to cover. I read bits and segments and I'm looking for certain things or certain sections and I'm reviewing them on a regular repetitious basis. So, you know, that's, I think another important lesson for people to take that are still in the call is that you have a copy of the book. Pick. Open it up and pick any page and just click it and read it. You know, like flip. Flip the pages and stop right there. Read that page and then you got something to chew on mentally for the day and think on. And that's part of why it's the gift that keeps on.

Giving. I love that. And we just want to thank everyone who hung around with us for a little bit of extra time and to all of our teammates who are going to help us structure the the dedicated session on equipment financing. We'll get that date pinned down, we'll get a broadcast sent out. And so you're definitely going to want to come back and join us on that because it's going to be amazing. Rich and I are going to do a deep dive on that example that no one's ever seen, and it's going to be incredible. So thanks, everybody, so much for.

The use of your valuable time so.

You don't have to be Rich to.

Get into the banking business. Because infinite banking concept is all about prioritizing the flow of money. The money is going to flow no matter what. Infinite banking concept is all about prioritizing the flow of money and has nothing to do with how much money you have. What you have is what you have, and you're going to flow that money anyways. So it's all about prioritizing the flow of money.