What YOU Need To Learn About the Infinite Banking Concept

The most important thing to focus on when you're implementing the process of becoming your own banker, the infinite banking concept is to know how to get started. Know that the mindset that's required and the study and reading and putting time into, you know, viewing content and those kinds of things, that's the most important part of it. I don't need a policy to become my own banker. I need to recognize that there's a problem, that all my money's leaving and that I don't have any control over the payments or the financing function in my life. So if I start to recognize that I could capitalize a frickin mattress for all I care, I can pump cash into any tool. Don't I need this thing called capital in this process called banking?

You need capital, it either has to come from your own reservoir or you gotta access it from someone else's reservoir. And you're gonna pay to access someone else's reservoir. Do you want to pay to access a bank that you don't control or do you want to access one from a mutual pool where your values continue to grow uninterrupted when you access from that?

All right, joined today with my friend, Vern McCarty. Vern, exciting to be with you here today. For everyone that's, that's watching, of course, our, our rapidly growing viewer base that we have here. All one or two of you. No, we're, we're excited about chatting today about, you know, we thought we would just go live and pick a topic and so, you know, Vern, lately I've been flipping through Nelson's book as I often do, and I'm sure you've been doing the same thing or as you're going into client conversations, certain pieces or components of the book. What I find that happens is I go through these little phases where I kind of get like latched on to some segment or section of the book and then it starts to show up in a lot of my conversations that I have. Have you noticed that happening for you?

I have noticed that happening for me. That's a really good point. Actually. I sat with a guy yesterday and I said, so you know, tell me, what were your thoughts after reading Nelson's book? And like, what were the things that really stood out to you? And I was pleasantly surprised. The things that he pulled out of the book. I was, was more about the human behavior and the mindset that's required to implement the process versus just, you know, a lot of times people want to talk about, you know, figures or numbers or they want to talk about, you know, nothing wrong with any of that, but they want to talk about the actual process, or they want to look at a policy design, or they have questions about loan repayments, or how did this work, how did that work? And all that stuff's good. All that stuff's fine. But the most important thing to focus on when you're implementing the process of becoming your own banker, the infinite banking concept, is to know how to get started. Know that the mindset that's required and the study and reading and putting time into, you know, viewing content and those kinds of things, that's the most important part of it. And like I said, those are the things that I'm kind of attracted to right now. And when the guy showed up on the call and shared that with me, I got really excited because I'm like, okay, this guy gets it.

I love that. I love that. I think that's great. I. I know one thing that happens is, you know, everyone has different, different ways of looking at information, and it's usually based on how, how we operate, how we think, our modus operandi. You know, there's people who are more data oriented. You know, they just, they really get all, you know, excited about, about numbers and, oh, we gotta look at some spreadsheets and all that kind of stuff. And, and, you know, spreadsheets are great. They're. They're there to help us, help guide our thinking. But what also happens sometimes, and I, I would say it's fairly frequently, is that we get latched on to numbers on a chart or a spreadsheet, and then, and then our brain kind of gets stuck and focused on the information that's in front of us. And it gets harder and harder to see what I would refer to as the things that are off the page. Okay, what, what's off the page? And, you know, Nelson's book has some charts in it. You know, Nelson himself would say that if he were going to do it all over again, he wouldn't have put any of those charts in the book. Right. Because it's, you know, it's a lot of information to dig through. But in all of those phases, he's trying to. He's trying to use what's there to teach us a way to, like, level up our thinking to a degree. And, you know, one that comes up for me, I think about equipment financing, the equipment financing example, because, you know, it's a meaty. It's a meaty chunk of the book. There's a lot to go through there. And there's some big examples. We're talking about a logger, a logger who's got a lot of equipment. In fact, on all the equipment he has, he's spending $192,000 a year in financing payments to Associates Finance. All that money, $192,000 a year, it's like 16 grand a month of payments, is walking out the door, never to be seen again. Yeah, you know, and I was watching, you know, we're working on releasing this, this video project right now of Nelson and an old seminar of his. And so in that project, you know, I was reviewing one of the videos that's going to be coming out fairly soon. And that particular video is going to show Nelson going through equipment financing. And so he's, you know, we're going to have the slides up and we're going to highlight some of the areas of the book so that people can follow along with it really well. And what's interesting is he's got to explain, he's got to have a baseline example and then he goes to the next example, the next example and next example. And as you see going through these examples as the, as the business owner is reclaiming the payment stream that was going to the third party company, right. The values in the illustration get better. And so our brain, you know, we're, we're reading it, we're trying to say, okay, well what's really happening here? And you know, Nelson's saying, well, it's because he's the payments, he's paying himself interest. And so people get really lost and they, they get very stuck on, oh, okay, so the reason the policy got better is because he paid himself interest. But that's not actually what's happening. And if you really read Nelson's book or you go through it enough times and in fact, if you can watch this video series we have available, it's, it's a playlist on our, on our Bankers Vault channel. You can go watch the whole playlist. There'll be about 30, 31 videos there when it's all said and done. And this one I'm speaking of, it hasn't been released yet, but it'll be coming out shortly. But, but yeah, you'll be able to kind of follow along with what Nelson's doing there. And he's taking us through like, like learning, a learning journey. There's little phases and build up that happens. The real reason that the equipment financing examples in Nelson's book, they get kind of better and better and better. Is because money that was going out the door is now actually portions of that money is finding its way to actually fund premium.

Right.

Because he's increasing the capital base and the premium that's paid in the illustration in each, you know, successive example that. That's what carries the numbers forward and makes the numbers better. And in fact, even has an example in there that he updated in a later version is we're in the fifth edition of the book. And so he did an example where they actually added another illustration years later. And that illustration, I believe it's on. I believe it's number six. It's on page 64. Illustration, equipment financing, number six. And in that illustration, they added one additional year's worth of premium. So instead of only paying for four years, they paid for five years. And because they added one more premium at the. At the beginning, even at a lower dividend scale, so people will say, oh, the dividends were higher back then than they are today, etc. Well, basically, what the end result is is that it didn't matter. What mattered is you just had to put more money in, and if you just put a little bit more in, all the results get better. And so at all times, Nelson's trying to teach us something in these phases. And the key takeaway for people as they go through the book, especially in the equivalent financing example, is to recognize that the thing that's making these illustrations grow, the thing that's making it better is the. Is the. The policy owner's behavior.

Right.

And that. That behavior, the intention was as I'm making these payments, I'm gonna. I'm gonna take the interest portion that was gonna go to the other banking institution, and I'm gonna make sure that that gets committed into the policy as a premium payment. And so that means more premium is paid, whether it's every fourth year or every fifth year, you know, etc. But a premium is going in, and that's increasing all the values. Increasing all the values. And I think people get really stuck, Vern, because they're not necessarily sure how to do that. And one of the reasons is that they get their first policy or their first two policies, and they're maxing them.

Out to the max.

They want to pay themselves extra interest in, like, the very first year because the policy is at maximum. There's no room for it. Yeah, well, Nelson was able to show it because he didn't show any loans until the fifth year. Right?

Yeah.

So he was trying to, again, walk us through things, because if he showed loans in the very first year. Well, then he'd need like 19 more pages in the book and he'd need more columns and he wouldn't be able to read anything.

That's a good point, Rich, because a lot of times what happens too. Not, not that there's anything right or wrong about this, but a lot of times people will see that example and they go, oh, Vern, so I got to put premium in the policy for like five or six or seven years before I can start accessing loans, right? I go, God. And I go, well, listen, that a. We know that. How fast does that time go? Even if we had to do that goes by pretty quick. And you're going to be using money and banking for the rest of the time that you're here on planet Earth. So, so what if you had to put premium in for five or six years, so be it. That's what Nelson had to do. Because the policies weren't nearly as robust as they are today. They don't have. They didn't have the kinds of bells and whistles that they got today where we can build cash a lot quicker and access cash value. And that's fine. But that's one of the things too, that happens. Just because it's all new, people kind of collapse things together and get a little confused on it, which is, you know, one of the primary reasons why you have to work with a good coach. But I remember earlier on in my journey, I would be a little bit more when I'm talking to, particularly not, not prospects or clients or people I'm working with, when I was talking to other people in the industry, because I was so passionate about it, I'm like, man, you got to hear about this becoming your own banker thing. Like, it's going to help your clients, it's going to help your own finance, going to help your business. It's going to help people become more aware of all this. Let's. Let's get after it. And they're, ah, listen. And they focus. What do they focus on, Rich? They focus on the tool, they focus on the whole life policy, they focus on dividends, they focus on all of these attributes that really don't matter and have nothing to do with the process of becoming your own banker. And they've got the arrival syndrome. They already know everything. They've already got it all figured out, so there's nothing new to teach them. And in the past, I would have more of that sort of argumentative type of conversation, particularly with people in the industry. And now, obviously, after having some experience and you know, implementing the process for myself and really understanding the process and understanding the tool, I just say, hey, you know what, like at the end of the day, you're going to do what you're going to do. You've got it all figured out. And I actually had a bit of an exchange with somebody through direct message on LinkedIn. And it was interesting because, you know, he's the smart guy and he's got it all figured out and he was telling me all of the things that I needed to hear to help me understand that he actually has no idea what he's talking about. Not only does he not understand the tool, he doesn't understand how the life insurance company works and he has no context for the concept whatsoever. And the reason why I shared all that is because again, he's focused on the dividend, he's focused on the rates, he's not understanding the contractual guarantees of the tool. Again, I'll steal this from your buddy Todd. Todd Langford. I don't need a policy to become my own banker. I need to recognize that there's a problem, that all my money's leaving and that I don't have any control over the payments or the financing function in my life. So if I start to recognize that I could capitalize a frickin mattress for all I care, I, I can pump cash into any tool and at least build up the cash. And then when I have an opportunity or a problem I need to solve, at least I can access the cash from that tool. Yeah, the value is going to come way down if I'm not using the right tool for the job. But at least I pay for the car or the, whatever it is, the investment real estate. I eliminate a payment or I create more cash flow and then I just redirect that cash flow and I, and I start being discipline and I put the cash back in my system and I replenish the pool so I'm paying back what I used plus the interest, at least at the end of the day. If I had the crappiest savings tool on the planet, at least at the end of the day, 60 years down the road, I would have gotten all the cars or whatever it is that I need to finance. I would have gotten back all of the principal payments and the interest that I otherwise would have paid to somebody else. Well, if you supercharge it with daily cash growth and a policy cash value death benefits match by age 100. You know, dividends that show up, if they do great, they have for the last 777 years straight or whatever it's been. Don't know what's going to happen in the future. It's likely to continue. But if I add all that in, well, it's just going to add rocket fuel to the outcome. So if he actually understood the process in the problem that money's leaving the tool doesn't matter. All those other, all the other noise that goes around. But that's what sometimes people, and particularly the advisors out there, they're harder to actually teach than prospects or people who are looking into this stuff.

Right.

Like it's harder to teach a somebody who already has context for this how it actually works.

It's really interesting to hear you share that because very recently I had a video sent to me and a gentleman who is a mortgage professional but also has an insurance license. It seems like according to what I can determine, it seems like mortgages is their kind of main bread and butter and then maybe some insurance on the side. Totally cool. Great, great that that's the case. And this, you know, gentleman had a, had a video that was all about, you know, the proper way to structure an IBC or become your own banker policy. Nowhere in the short video did he mention the source material of becoming your own banker. The book, the man who invented the concept is not an authorized practitioner. I can clearly validate that because he's not on the list. And he. I've also checked with the Institute as it hasn't applied, hasn't applied to become an authorized practitioner.

Yeah.

And the individual is using some screenshots of an insurance company and some illustrations. Now, I don't want to, we don't want to talk, you know, lather and slander insurance companies. None of that stuff like insurance is insurance and there's company great companies and you can do this with a lot of different products, but this particular company is one that left the participating market for 11 years and they didn't offer a PAR contract. And then recently because of the growth of the PAR insurance market, they all of a sudden decided to jump back in because they were losing market share. So again, who are they committed to? Are they committed to their power owners and their power product or are they committed to what's convenient? I'm not sure they the same institution had an article that came out, oh, I don't know, about 2013 from somebody who also didn't read the book, didn't know anything about it, saying that they don't support this idea and that people should be, you know, beware of it. Well, because they latched on to some subtle bullets that some random advisors who also didn't know anything about the concept were saying. They didn't actually go to the institute and ask questions or talk to Nelson, who was alive at the time, or invite him to their office or read his book, none of that stuff. So they themselves, as a company, don't support this idea, which is unfortunate. And this gentleman is going on to talk about the right way to structure a policy. Of course, he's got whatever 98.9% or something of the cash value available in the first year. He says this is the only way to do it. Well, what he doesn't say is really important in the video because what he doesn't say is in order to create that event, you have to manipulate the illustration to a degree and you're potentially putting the the client at a great deal of harm. Because if the client funds that policy the way it's illustrated, then when eventually a piece of term insurance falls off in the, in the 11th year or in the 20th year, whichever it may be, they are going to have possibly an extremely high taxable refund. That has to happen. That's not discussed in this video. There's no warning signs of that. He doesn't indicate that that insurance company doesn't allow policy loans in the first year. So what good is all that cash value in there if you can't get it out? That's interesting. So there's a whole bunch of things that are simply not mentioned. They're just left to kind of to the viewer to interpret, but they have no idea what's there to interpret because they don't know these things exist unless you have the experience. He doesn't mention anything about the transactional problems that that insurance carrier has when you actually want to go and make loan repayments or when you want to go and add premium payments and you want to do it on an ad hoc basis. Coincidentally, they can't seem to get a transaction right. And it takes them anywhere from two to four weeks to actually properly appropriate the transaction. Even when you've sent them a directive and an email. As a policy owner, their computer system automatically interprets things. It gets it wrong every time it sends you a letter in the mail that indicates they've done it wrong. So that sound that feels good as a policy owner. And then you have to still go back and try to get the transaction fixed before it can be applied the way you want it to so that you can go take your policy loan. So the Whole thing is just a momentous hassle. And it doesn't need to be that way because it's not that way with other carriers. But this particular carrier is who this one advisor has latched onto, who's not an authorized practitioner, knows nothing about the process, probably has never taken a policy loan, doesn't indicate that he does this himself, and he's telling everyone the right way to structure a policy. There's just far too many pitfalls in, in this 19 minute video that I, I'm probably going to do a reaction video to because I just, I'm worried about people watching it and believing that that is true without knowing what they could do to actually seriously damage their financial position because of a lack of education. Now, the advisor, probably a really good guy, probably actually looking, you know, doing his best to look out for his.

Clients, probably thinks he's doing a good.

Job, simply doesn't know any of these things, Vern, because he hasn't experienced them yet.

Yeah, and what's interesting about what you just said, all of that experience, I happen to know this carrier that you might be talking about and I also happen to know that you have policies with that carrier, as do I. So that's one of the biggest problems, people out there going, oh, you know, becoming your own banker or this and that and the other, not trying to badmouth this person. But does that person have policies? Are they practicing the concept, are they implementing it? Or, or is this just a really cool way to sell insurance policies? That's one of the biggest problems that we're facing out there. I don't want to use this buzzword misinformation, right? There's people out there who are, who are dissecting this process or saying it's bad or even saying, guys like you and me are these evil people who are not telling our clients the full story and giving them all the goods and none of the other side of it. And they, and again I go, it goes back to, they're not actually understanding the process because this individual that I was telling you about is saying to me, oh, you guys and your, what he calls it, he calls it a one trick pony, becoming your own banker. Because again, he's thinking about the policy, he doesn't actually realize that we're talking about the financing function. Look, if you want to put money into real estate, if you want to put money into cryptocurrencies, if you want to put money into the stock market, you tell me the greatest financial strategy or investment that you can think of. Rich, correct me if I'm wrong. For me to take advantage of that opportunity, don't I need this thing called capital in this process called banking? Isn't that like something that's absolutely required for me to take advantage of that?

You need, you need capital. You have to, it has to come from your own reservoir or you got to access it from someone else's reservoir and you're going to pay to access someone else's reservoir. Do you want to pay to access a bank that you don't control or do you want to access one from a mutual pool where your values continue to grow uninterrupted when you access from that pool and you have complete control and autonomy over how you repay that structure 100% to your own discretion in the worst case scenario is you die and a bunch of tax free money shows up.

Yeah, boohoo. And here's the thing, like, okay, so it's so Rich. I mean again, I think sometimes like it's easy to complicate things, right? It's easy to make things complicated because, because we're talking about a really simple process that nobody really thinks about. Banking and the actual flow of money and who owns the bank and who's getting use and control over that money. Who's putting that money to work. Like that's all we're talking about here. And so I don't know about you, but I don't own. You know, you can buy shares. I don't even know what that means. You can buy shares in a bank. I don't own a bank. Okay, But I do co own a life insurance company. Okay, so do I want to pump all my money into the bank where they get use and control over it and they set all the rules, or do I want to pump the money into a company that I co own? Correct me if I'm wrong, Rich, you know a lot more about this stuff than I do. If I co own a business, isn't there some sort of an obligation that that business has to like create a profit?

For me, the objective of every good business is to try to create a profit and it should be creating a profit for its owners. If you're in business and you're not doing that, maybe there's some different YouTube videos and stuff you need to be watching, but you're right, that is the intent. And you can save and borrow money over at a traditional commercial bank. Assuming that they'll give you the money. You have to fit their bubble to go get access to their money. They'll let you put your money there, but they won't necessarily let you access it. You have to be able to be in the right bubble of what allows them, you know, you to access capital or you can save and you can access and borrow money from an insurance carrier that you co own and you have complete access. You have the first right to access and whatever is available to be lent from your policy, you have the first right to access that as indicated in Nelson's book. And there's no restrictions and it's a pretty small, pretty easy process. It doesn't show up in your credit report and you get to control the dynamics of how you put it back down. So I think going back to the conversation you were having with this whatever your, your, your LinkedIn, you know, warriors battle or whatever on the private messaging and stuff. If you, if you go back to the, the just the word control, you're watching this right now. What price would you put on control? Having the autonomy and control to be in the driver's seat of your own, your own destiny, your own financial capacity. Having the ability to access capital and then re replenish that capital at your own discretion. Earning a consistent dividend that is going to also grow and augment all of your financial values and borrowing power for every future year, for the rest of your natural life with an entity that's demonstrated to be profitable for over 100 years. What, what value would you place on that? And does that have anything to do with a rate of return or what product is better? It doesn't. I'm just talking about the word control. If you have value to that, if you personally place value on that, then probability is you should take a serious consideration to implementing the strategy in life. Because you know, I, I firmly believe there is no better way to have a higher level of control on your financial condition than by first controlling the banking function and recognizing how you can do that. And the best way to do it is to do it efficiently. And to do it efficiently you should be doing it with a well designed participating contract that it's, that's matched to your objectives. Not well designed in that it has, you know, you can, you can, you put a dollar in and you can pull a dollar or 90 cents back out the next day, in which case you're not committing to the, to the process of actually funding the policy, number one. And, and, but it's designed based on your other obligations. I'll give you an example. There's a gentleman right now who is looking at getting a policy and underwriting and you know, originally the idea is he wanted, you know, policy with access to a lot of capital. However, he already has access to a lot of capital, know actually well over a million dollars of capital. So he doesn't need capital. That's not really what he needs. What we found out through discovery and questions is that he's got a problem with his corporation and he's got, you know, some, some, some kids that have, that are also U.S. citizens. Now in U.S. the IRS does not recognize what's called a capital dividend account. So eventually when this gentleman passes away and, and his spouse passes away, whoever goes first, there's going to be value in actually two corporations, a lot of value. And, and there's an, if the kids want to go, they're going to receive the shares of those corporations. If they want to extract that capital, the IRS is going to tax every dollar that comes out of it. Now there's a way that we can flip that and change it, but it requires some very strategic planning, bringing in some, some qualified professionals. But the end result is we can solve this problem so, so him and the wife can extract that money tax free before it ever gets to the point where the kids need to do it. But now the purpose and the structure of the policy is less about cash utilization. It's actually about the importance of the death benefit and how much we can maximize that on the first death to create this ripple effect so that the lifelong amount of taxation that's going to happen in the family line, which is extravagant, can be mitigated to the highest degree. Now this, you cannot determine these things by watching a nine minute video. So making bold statements that this is the only way to do something, this is the only way to structure a policy that is so ludicrous it takes no consideration to the actual day to day needs and desires and objectives of an individual family. And if you're watching this, you probably have certain things that are important to you and your family. Yeah. And if you wonder your neighbor's house, I would bet you your neighbor has some slightly different things going on in their life and things that are important to them. And so look across your neighborhood, just recognize that everyone's got something different going on in their financial life. You might have similar things. You want successful, you want to have passive income, you want to have a good retirement life or whatever, you want to leave a legacy. These are similar bullet points, but the how you actually want to achieve them, when you get down to the nitty gritty, it's going to be very different from a case by case basis. So to say there's only one way to build a policy that is absolutely insane.

And to your point, one. Only one. Not only one way to build a policy. And again, I'll go back to this one trick pony nonsense. You know, Rich, would you consider yourself, would you say that you're an investor? You're an investor, right?

Yeah, I mean, I've done, I've done some, mostly in real estate. You know, I've got, I've had some successes. I've had some smash my face against a brick wall moments too.

Yeah, hey, same here. The good news is you and I have made a lot of mistakes and you either win or you learn. So we learned a lot and we can bring all that value to the conversations that we have with people. But my point is, is, you know, so many people are focused on trying to grow their money, trying to invest, and one of the key things that they're not recognizing, again, is that to your point, there's common things that people want to achieve. There's also common problems that people have, and that is that money's leaving. And they're so focused on trying to grow that tiny little bit of money that they're able to actually save, they're trying to get a bigger rate of return on that little bit of savings that they have. And they're completely missing the fact that 90% or more of their hard earned dollars are just walking out the door just to perform the financing function. So to your point of all that energy and all that growth and all those other added benefits to this tool we use to implement this process. Again, going back to my silly shoebox example, if I can find a way, because we're already reliable, we've proven for our entire life that we're reliable to pay our bills, right? You make your car payments, you make your mortgage payments, you pay your utility bill. You're already doing all those things. You're already some other bank's really good customer. So why not find a way to become your own really good customer and just return the dollars back to you that are already leaving you? How is that going to enhance your rate of return? If I don't have to pay 600 bucks a month anymore for my truck payment, and I have the discipline to redirect that capital right back to my own system, which, again, like you said, I completely control the repayment schedule. I could ratchet that down or bring it up if I wanted to. I'm just pumping more money back into my own system. So I have more to use and more to take advantage of. And I have that control. I get to decide. To your point, my price that I put on control, the value I put on that is there's nothing that beats it, right? So if I didn't have all those fancy bells and whistles on my policy system and I just followed the process, I'm still going to get back all that capital that I was previously sending away. So if I get some growth behind it, it's just going to enhance everything. And rather than me focusing and worrying so much about investing and trying to grow money or create cash flow coming in, if I just focused on reversing the cash flow that's already leaving me, I would just have a lot more cash to take advantage of opportunities that track me down. I don't mean to laugh, but it's just so freaking ridiculously simple. It's like, holy snap, man, the money's leaving, let's get it coming back.

And, and knowing that you're going to have every car payment, you're still going to need the use of vehicles, you and your wife and your kids, knowing that you're going to have those, those, the stream of those payments contained so that you can utilize them at later points in the future, basically you can use them to help create a, you know, retirement or a passive income. At the, at a future date, you're quite literally going to have all of your payments back. Now people will say, well, oh, that's not really true because you still had to go pay cash for the vehicle. Like, look, if I go buy a vehicle for 40 grand and I make repayments of 50, $50,000 on the vehicle, which just keep it at very high level, and I have access to all those $50,000 and I can reuse it again. I think I got it back. You know, and, and that happens in a variety of ways. You know, the, with the policies growing it, we're talking about the, the net, the net causal effect of the, the, the accumulation of policies growing, the cash availability, the policy loans going down, all these things working in tandem with one another. You're in a position where you, you by, by being intentional on cash flow management.

Yeah.

Which is infinite banking is about cash flow management. You're going to be able to have access to that, whatever you refund into your policy again to use at later dates, whether it's for an opportunity, whether it's for the day you pass away. You know, if, if you just think about this, forget about even getting all the payments back while you're alive, Vernon.

Yeah.

You're. You made a 600 payment on a vehicle and you're gonna do that for the rest of your life. And let's just say. Let's just say. So that's. I'll keep it simple. Let's say it's ten grand in payments a year on, on vehicles, and you do that for the next 50 years. We're adding up an awful big sum of money.

Yeah.

And all of that money is money that won't be available for part of your legacy. Whereas if you implement the strategy the way that we teach you, it will be.

Yeah.

Now if you could also have all that money to use again as a, as towards a passive income and you didn't have to take on the risk of whatever the market's doing right now. At the time of this recording, the markets, it's been on this epic rise and. Okay. Now it's down. Okay.

Yeah.

It's. It's not like anybody, if you ask anybody, says, oh, is the market going to go down? Like, of course it's going to go down. It has to. Will it come back up again? Sure. Certain parts of it, maybe not everything, but it's always going to come. It's always going to come down. It's a cycle. It always does that. So. But people are kind of get caught up in the greed, fear cycle. And when you are just controlling the payments, there's no greed or fear cycle. It's just, oh, monthly payment recycle back to my system. Monthly payment recycled back to my system. Yeah, someone was going to get it. Now I'm going to get it. I was on a call with a client the other day and in their business, they have a lot of software tools that they use and so that, you know, because they operate like a marketing agency and that sort of thing. So there's a lot of like online software technologies. Well, the discount for paying annual on like software is pretty high. For a lot of it, it's like between 20 and 30%. So as an example, like, like Dropbox or one of these kind of things, if you pay that annually, well, it's like a 30 discount. We're not talking about a huge, you know, you're paying 12 bucks a month versus getting it for the net effect of say $8 a month. I mean, that's a huge percentage wise. It's a huge savings.

Right.

Well, if I go and pay it annually with a policy loan, shouldn't I still be paying 12 bucks a month? Yeah, I'm just going to redirect to the policy. Aren't I making the amount of money that the software company used to be making off of me for paying for the privilege of paying monthly?

100%.

Now, if I just did that on every other software line item I have, probability is I'm going to accumulate, especially if I'm running a business that's reliant on those things, I'm going to accumulate an awful lot of extra capital that would have willingly walked out the door before.

Yeah, 100%.

All I got to do is change the way in which I was doing it and be more, more specific about tracking it. I got to put a little energy into tracking. But I think if you're going to get all that money back, you're going to get back for every year that you're in business for the rest of time. Which, by the way, if you have a business that you can sell and then you can show in the books that that's happening, that also augments the value of your business. I mean, what's the ripple effect of that? How much investing had to go on? I just made a 30 return by paying annually for my software and then paying the same payment to myself.

No, it's brilliant. That's all of the, the unseen that you talk about. You talk, you, you. I love that analogy. You always talk about the unseen, the things that don't show up on an illustration. It doesn't show up on figures or graphs or chart. It doesn't show up on any of that. All of these unseen values.

Right?

That's really, it's really good.

Yeah. I mean, just in that one example, if that ends up being, let's say, you know, because they have a, they have a lot of software, let's just say it's like $3,000 a year that they save by, by doing that, and they do that for the next 30 years. That's 90 grand. Not including the interest, potential earnings on that 90 grand, that's $90,000 that was going to walk away to someone else's bank. That's $90,000 now of contained capital. By the way, that $90,000, probably a good portion of it's going to find a way into premium, which is going to increase death benefit, increase dividend potential, increase future cash values, which we can't see because we don't know what's going to happen until you start implementing the process.

Yeah, there's the growth on that $90,000. And then on top of that, there's the. What other opportunities is that $90,000 that you now have that you wouldn't have had going to create for you and your family to even expand the wealth even further.

Right, right. But you know, we would need like 4000 spreadsheets and you would need like 4 hours to try to walk that through in some rational example. But instead if we just focus on our imagination and we focus on the principles that Nelson taught us, which is an exercise in imagination, reason, logic and prophecy, if you, if you recognize those things and you get down to the core principles, nothing else matters. You don't need a spreadsheet to prove it to you. When you just recognize, if I do this, I will have more capital available. Because I have more capital available, more opportunity will be available and I can be empowered and in control. The word control again. To be able to make directive decisions about my financial life without anyone else getting in the way and trying to ruin it for me or any toll takers or gatekeepers, you know, stonewalling me or roadblocking me from the things that I want to get accomplished.

Yeah, I literally just talked to a fellow last week who told me bank called my loans back in December and he had a, he had, he forced him to sell a farm and forced him to sell a property that he was not planning to sell. But hey, who, who's, who's, who are you doing business with somebody else's bank who has, who has all the control? Who sets the rules? They can call that loan. And guess what? You're the one left to try and figure out and pick up pieces. My policies, they are calling loans on me. I'm one who determines all of that. So if that debt resides inside of my own system versus someone else's, I have all the control. I can put more in when I can put more in, I can put less in when I choose to put less in and anything in between. And I sleep well at night.

Really interesting that you said that because, you know, as, as prime rate is rising and you know, there's a lot of discussion about the bank of Canada raising rates yet again. And it's like it's the end of the world because no one expected it would ever happen. I'm like, come on, guys, like, we're at the lowest rates ever in like recorded history. I mean, sooner or later something's gonna change. But anyhow, so, so, so lack of preparation. But as that begins to clip up and it's going to force people as they're doing mortgage renewals and all these kind of things, or they're applying for Something new, it's going to incrementally increase. Anyone with a home equity line of credit, it's going to increase your payments on all this stuff. So it's going to increase the payment requirement. And if you're unable to make that payment because you know your income shifted or gone down or whatever, now you're exactly in that position. You're going to. People are going to be facing foreclosures. There's going to be. It's going to suck away more cash flow if you haven't been creating a capital reservoir that you can use to eliminate those debts when the time is right. If you want to go use the bank's money right now, that's fine. But if you have your own capital pile, the moment that it's no longer a viable option for you, you don't want to do it anymore. You can just go, take money from here and go, blick, see you later. And you get to have the control and the autonomy. Just say, wave goodbye to the other banking institution. Now, if you can't do that in all areas of your life, but you can do it in one or in two, how empowering is that? What, what's the price on the ability to just go and make that happen? And whether you do it or not, but the knowledge that you can, that, that's the. Again, these are the hidden things about embracing this concept in your life that's able to be created for you by. It's like there's just an intangible level of feeling when you, you know that you're in the driver's seat of your own financial life and your money.

Yeah, I started out the video talking about this, this one trick pony nonsense and, and you just kind of described to me that it almost sounds like the process of becoming your own banker. The infinite banking concept actually gives you more options. It doesn't take away any of the existing options. It sounds like it actually gives you more options. It's like it's a an and process. It's not this or that or an either or. So. That was really good, Rich. This is amazing. Well done.

Well, Vern, this was great. Hopefully everyone gets. Get some fun and some value out of this. You know, I'm pretty sure we'll end up releasing this on the YouTubes as well. So if you're watching us on YouTube, make sure you check out the playlist and just magically poofed up onto the screen. There's some great stuff there, probably some good stuff from Burn, maybe a few for me. And some of our other amazing team members. And, yeah, you're gonna have a wonderful education. So keep digging, keep exploring, have an amazing rest of your day.