💰📉 How To Create Cash At A Discount! | Wealth Without Bay Street Podcast

So let's create today what would otherwise take you a lifetime to accumulate. Hey, I think the assets I have are going to build up to 10 million 40 years from now. Well, let's create a policy that contractually guarantees a minimum of the delivery of 10 million today. So we can build for you right now what it would have otherwise taken you a lifetime to accumulate. We can do that.

Okay.

The fact of the matter is, is that participating dividend paying whole life insurance creates a lot of cash at a discount. Exactly. When the policy owner and the beneficiaries need it the most. And so let's just expand and talk a little bit about that because we would often and often say day in and day out, when we talk to people, just using a recent example that we talked about before starting the episode where we say to said to the prospective policy owner, give me a nickel and I'll give you a dollar. And the Paul, the prospective policy owner says, can you run that by me again? Yeah, I'm going to help you create cash at a discount. So you give me a nickel and I'll give you a dollar. So let me show you what that means. Let's just share my screen here real quick. And for people who are listening on their podcast platform. So this particular prospective policy owner says, listen, I'm contemplating putting $100,000 of premium into this policy. And we helped the policy owner see things from a completely different vantage point. When you take that $100,000 of cash premium and you divide it into the death benefit of 1 million 887 million, you're going to get about 5.29%. Right? So if you give me a nickel, I am going to give you a promise to pay a dollar. That's the calculation. It's ridiculously simple. So the question that we posed to the prospective policy owner was, how many dollars do you want to buy at that degree of discount? And the prospective policy owner says, how many are you selling? Right? And when you look at it from that perspective, right, we say, well, look, the moment that you do that, the moment that you put that 100,000 a premium into the policy, we're going to put 1.887 million into escrow with your name on it. And if you're paying that 100,000 a premium, that premium can never go up. It can go down, but it can never go up. But yet the death benefit is going to continue going up and it's going to go up quite, quite a bit. So if I go back here to that table of values, second policy anniversary. And under 100,000 goes in. The cash that's been piled up is 179,000. The total death benefit has grown to 2.1 million. But look at something remarkable. You go to year three, you've got another hundred thousand that's gone in. You've got 2 million 327 million of total death benefit. But what is the increase in the annual increase in total cash value from year two to year three? Rich, because we had 179,195 in year two and 287,726 in year three.

Yeah, I mean, it's well in excess of what the deposit of the premium allotment was of a hundred thousand. You know, it's gone up by 100 and what, 10, 12, 15, something like that? 108. So it's a really good turnaround on moving money from one pocket, let's say your regular corporate bank account, to another pocket, the insurance policy account.

Yeah. Even in this case, being that it's prospectively a personally owned policy, you're creating cash at a discount, not only while the policy owner is alive, but if you can find. And again, I go back to this table of values. If you can find anywhere in this table of values where the policy owner is going to pay in what the insurance company is going to pay out.

It doesn't exist in the first seven years that we're looking at here, that's for sure. And it won't into the entire life of the policy, I can assure you that.

Yeah, you just won't find it. If we get to the fifth year, we've neutralized because we have 505,000 of total cash value that's piled up. We've put 500,000 of premium payments into the policy. The death benefit started at 1,800,000. It's grown to 2,700,000. The cash value is contractually guaranteed to grow to match the death benefit by age 100. If we go to the sixth year, how much does the cash value grow from year five to year six? Is it more than the premium paid?

It's more. It's $120,000.

And so are we continuing to create cash at a discount every single year? Because we're only putting in $100,000 in premium payment and the death benefit continues growing. And so when you look at. And again, you think logically.

If I'm.

Paying 100,000 in premium and the annual increase in cash value is 120 plus thousand, logically I would Ask myself, when would I ever want to stop putting 100,000 a premium payment into a policy that is producing that result, that is creating cash at a discount? Logically, I wouldn't want to stop doing that. When people look at it from the perspective of how soon can I stop paying the premium? Well, they don't understand the problem because the problem isn't the premium. The premium is the solution to the problem. And so the question that we would be asking ourselves once we fully understand the attributes and just how incredible this tool is, the question that we're asking ourselves is how long can I pay the premium for? Because the more capital that I put into the policy, the more capital I'm going to get out.

What's really important about that question? Jay, there's more to that question than just the question itself. When you ask yourself a question like that, your brain automatically starts to. You're giving it a new problem essentially to solve. And the new problem is you're thinking, how long can I pay the premium for? Your brain starts to think about, well, how long will I be alive? How long can I generate revenue for? What are the different streams of revenue that I have that can allow me to continue to pay that premium? Yeah, what, what new things will come up for me? Because I now have this cash generating, discount cash generating machine working in my benefit from, in my favor that I can access capital when needed to, to go and create other streams of revenue that will allow me the continuity of funding the premium for that continual result. So your brain gets triggered by the questions that we ask. And that is a perfect question. The question of how soon can I stop paying the premium is a take yourself out of the game question. It's I'm going to go to sleep and retire and die early and be put six feet under because I've stopped inspiring my brain to think of new things, things to do. Whereas the other question is how long can I keep paying it for? It triggers your brain into goal oriented objection. You know, seeking to accomplish an objective type of an environment mentally, totally.

And when you look at the, when you look at the anatomy of the contract, okay, the policy itself is a unilateral binding contract. And when we assist our clients with the placement of these contracts, the contract is guaranteeing tax free delivery of money exactly when it's needed the most. And so you're getting cash creation at a discount. How much cash do you want to create at a discount? Logic.

That's possible.

As much as I can. You're getting contractually guaranteed delivery of tax free money at a discount. And so all that we're doing each and every year is we're repeating the same offer to the prospective policy owner. How much cash do you want to buy at a discount? He's just repeating the same offer year after year after year. And the business owners that we work with and the people that the individuals that we work with, they grasp this very quickly because of how it's explained. We should stay away from anything that confuses people. A participating dividend paying whole life insurance contract guarantees the tax free delivery of money. And you can create cash at a discount. Decide how much cash do you want to create at a discount? We can help you do that. You pay no tax on the buildup. You've got ready access capital on demand, on your terms. You've got no bureaucrat or government official leaning over your shoulder. So you're in a position of total and absolute control. And someday you're going to pick up the option, right? Someday you're going to die and you will never pay in what the insurance company is going to pay out. Because we just keep repeating the offer each and every year and you keep paying the premium and someday death will come and the delivery of tax free dollars is contractually guaranteed.

It's interesting that you say in this environment, because of what we're talking about, that is true. You will never be able to pay in what the insurance company will pay out. However, if you went and bought term insurance and held it for a lifespan, it is very feasible that you would actually pay more into it than what it would pay out. It's that that can happen in design of some term insurance policies on their own big time. Because. Because actuarially speaking. And the other thing that's interesting is that I don't know if you know this or not, Jay. Some people actually live past age 85. Have you heard about that? There's this whole, whole group of people who actually live all the way to age 100 and even beyond called centurions. And there's people who are expecting to outlive the what the world's global expectation of lifespan is this day and age. And so what's funny is that most term insurance, it's sold, it actually ends at 85. So even if you're still alive and you paid all the premium, all the money into it, someone else got all your money, an insurance company. I'm glad that I co own one of those by the way. And there's no payout because you're still living and Then the policy just done, it's terminate, it won't go past age 85. So in other words, you're, you're, you're gambling basically with the house and you're betting every single year with an increasing amount of money that you're putting down from, you know, in 10 year or 20 year increments. You're putting more down and more down on the roulette table. Say this is the year, this is year. I'm going to go, I'm going to get you guys finally, this is the year. And then you're 85, age 85 comes around and you're still around and the house is just like, sorry, thanks for all your help and putting cash flow money into our, into our great business here each and every year. You know, so not, not to like associate the insurance company with the casino, but just recognizing the difference in the thought process between two fundamentally very different types of tools.

Ask yourself a question. What type of foundation do you want for your family and for yourself? And people are putting their money into all different types of financial products. And, and those, those financial products, right, they have some degree of variability, they have some degree of volatility. But we have a bunch of great packages which are just blocks of dividend paying, participating whole life insurance. You can ensure one year of profits. You can create a post secondary education plan. You can create a I just want to have a boatload of money when I retire plan. You can create the package and it's a block. And that block of dividend paying, participating whole life is absolutely the foundation that you want to build on because you know that the money's going to be there exactly when it's needed the most. And it's not correlated to any of the ups and downs of a stock market or any of the expansion or receding of an economy or any political turmoil or any changes in tax calculation or income tax is political turmoil.

Jay, that never happens.

Like just think about it. And so when you, there's got to be something there, there's gotta be something there. A real foundation, something that you can build on. And skyscrapers stand up really well on really strong foundations. And so when you look at this from the vantage point that we've outlined it, you're creating cash at a discount once the policy is in place. You've now got contractually guaranteed delivery of tax free money exactly when it's needed the most. And you'll never pay in what the insurance company is going to pay out, provided that. And we understand that not every Canadian is going to work directly with Ascendant Financial. We understand, we get that. But when you're contemplating doing this, probably pretty important to work with and would represent an advantage to you to work with a team that specializes in the sale and placement of dividend paying, participating, whole life. We're not generalists at Ascendant. We specialize. Going into our 16th year of specialization, we're pretty damn good at what we do. And so if you want to create cash at a discount, then you'll know exactly what to do, which is to get in touch with us and we'll help you create cash at a discount in our.

If you're contemplating, like Jason said, well, the best way to have a map, a guide for your contemplation is head on over to seven steps ca. We literally have seven steps that we've mapped out for you to help enhance your contemplation. Walk you through exactly the learning journey to determine if this is the right fit for you or not. And if it's not, hey, that's cool, that's. At least you did your research. But you can't say that you didn't know about it because if you listen to this episode, you do now.

Well, here's ask yourself the question. Logically, anything that you go out to buy, if you have the opportunity to buy it at a discount, would your, would your logic ever support not doing that? If you could go across the street and buy it at full price, like your logic is going to kick in. It's a. You want to create cash. Yeah, everybody wants to create cash because you're going to need the use of it. Well, do you want to create it at a discount? I hope so. Get in touch with us, let us help you do that. And as you, as Richard mentioned as you go through that process, our experience has been with our clients day in and day out, they want to create more cash at a discount, not less. And so your program will grow over time and you can enhance your life financially in a very dramatic way. And you can create a very peaceful, stress free way of going about things financially knowing that you're going to be just fine while you're alive. And when that day comes, when you're no longer alive, there's a contractually guaranteed delivery of tax free money exactly when it's needed the most. And that's our definition of the best investment, one that pays the most, precisely when it's needed the most. And here's the other thing I want to emphasize. Ask yourself, take a look at humor Me, as a viewer or as a listener, go through this exercise. Write down all of the assets that you own today. And when I say own, I don't mean literally, right? Because if you're making a payment on your home, you've got equity, you don't own the home. But I want you to write down, if you were to create a personal balance sheet, then write down everything that would land in the asset column and ask yourself this question. Put a check mark. So how, how, which one of these assets, if any, could I turn into cash right away without triggering a penny of tax and without reducing a penny of the assets value? Put a check mark beside any of the assets on your personal balance sheet where you can turn them into cash right away without triggering a taxable event of any sort and without reducing a penny of the assets value. It's, that's going to be a very eye opening, revealing exercise because when you put this contract, this participating dividend paying whole life insurance contract as an asset on your balance sheet, you can absolutely put a check mark beside that asset to meet that criteria. Because most people that we meet with, their, their estate, okay, if you look at your net worth, their estate is extremely illiquid. Meaning you could not do that. You, you would have to, you could turn an asset into cash, but in many cases you're going to trigger tax and you have to reduce the assets value. Doesn't happen in this instant. So that begs the introduction of logic, understanding that how much of your capital do you not want residing there? But people say, yeah, it's not an all or nothing thing. Of course not. Because from that place of ownership of a dividend paying, participating whole life policy, or ideally a system of policies from that place you get to control how you finance all the other assets that you want to accumulate over the course of your lifetime. So let's create today what would otherwise take you a lifetime to accumulate. Hey, I think the assets I have are going to build up to 10 million 40 years from now. Well, let's create a policy that contractually guarantees a minimum of the delivery of 10 million today. So we can build for you right now what it would have otherwise taken you a lifetime to accumulate. We can do that. So let's help you do that. Isn't that good?

Pretty simple. It's, I mean, yeah. So I mean, what, what else do you say there? It's kind of looking, looking down at my table here and I've got two copies of cash follows the leader and you're saying, let's get the Death benefit. We need at the end, and by the virtue of doing that, the cash is just going to follow the leader, which is the death benefit. And if you don't understand that works, you can get our copy of our book, Cash Falls the death Benefit. It's very well explained there. And the leader. It's just really, really simple.

It's.

It doesn't need to be overcomplicated.

Richard just messaged Grow. He just messaged me in the chat window saying he wants to apply for another policy and he can do that on his own. But that's. That's how inspired he just got. But here's the deal. So creating Cash at a Discount. That's going to be an upcoming book in the wealth without Bay street book series. I'm. I'm literally in this episode just sharing that Richard had no idea. He can say from a place of honesty and integrity that he had no clue that I was going to say that. That's how these book ideas come up.

Kind of like the first time that he said that we were going to.

Write a book, actually. So create, Create Cash at a Discount is going to be another book in the Wealth Without Bay street series. And we're going to expand on that, that philosophy and that, the approach on how to go about doing it. But in the interim, start doing it. Get in touch with us. Let us help you create Cash at a Discount. Everybody watching on the YouTubes, thanks so much for tuning in. And you made the right decision tuning in, so keep watching. Another video just popped up. Continue your journey of learning and for everybody on your favorite podcast platform, thanks for tuning in. Make the rest of your week outstanding, and we look forward to hearing from you and connecting with you real soon to help you create Cash at a Discount. Thanks, Rich. Always a pleasure.