The Power of Policy Loans With The Infinite Banking Concept | Wealth Without Bay Street Podcast

You are listening to the wealth without Bay street podcast, a Canadian guide to building dependable wealth. Join your host, Richard Canfield and Jason Lowe as they unlock the secrets to creating financial peace of mind in an uncertain world. Discover the strategies and mindsets to a financial future that you can bank on. We love to provide education here. That's the purpose of our podcast. We even put together an incredible masterclass that you can access where you can learn all about how to implement this process of becoming your own banker in your household and in your business. There's a bunch of great content there. Head over to wealthwithoutbaystreet.com masterclass. Part of the package you're going to get is going to include the best selling book, becoming your own banker. This book is a game changer. You got to have it. It's one of the best books on the planet. And I'm so happy for you for taking action to make sure you get a copy in your hands.

How do we, how do we know when we're live?

Well, there's this big thing that just showed up on the screen that says you are alive. Okay.

And we just came into the studio. Thank you.

Yes.

We got a packed audience here today. And welcome to this live broadcast.

Live. Super live.

Breaking news. Breaking news. What's our breaking news.

That I break things? No, we're, we're going to have some fun. It's Friday. It's podcast Friday. So Jason and I are in the studio and we have. He threw me a curveball today. He says, let's go live today. I said, all right, sounds good. So that involved re coordinating some equipment and we are here to produce live. So we're going to be doing both. We have our audio that will go on the podcast officially when we're set to go. And we're also live on Facebook today. So our topic today on the wealth without Bay street podcast is all about policy loans.

Policy loans. Now I'll share something with you, Rich. So we've been doing quite a bit of outreach on Facebook's and so what's interesting is that when we, when we introduce this, this process. Right. Becoming your own banker, the infinite banking concept. And we're talking about loans.

Yep.

I think many fire departments in many cities across the country have been a little extra busy because people spontaneously self combust. And it's really interesting, like some of the feedback on Facebook has been purely from a place of either a being so ingrained in the way that you've been thinking about the use of money up to this point in your lifetime, or B, a person just having maybe a distaste for learning that that could.

Be it too, which Nelson would refer to as the arrival syndrome in his book.

Right. And so the. Gosh, some of the comments, and now there's people jumping on, right. Defending. Oh, why did you say that? And, you know, what we're doing here is we're. We're trying to educate, Right. So we're trying to share. And it's okay if what we're talking about challenges your traditional way of thinking.

In fact, sometimes it's better that that's the case. Yeah.

And so if you, you know, as you're watching this live broadcast, if you. If you get the sense that you. You want to take a ball pin, hammer to your computer or you want to flip a table or something else is going on, please record it before you do it and post it.

No, literally record yourself flipping the table over. And then we have a whole chain of people doing, like, little videos over ballsy love. You said what?

You said what? You said that you should borrow money from a life insurance company. Are you nuts? Are you nuts? I've actually been called that. I've been called many things on Facebook, by the way, that I never thought people would call someone they've never met before.

The way that you said that is kind of like you had just been kicked in the. Oh, boy. I'm just kidding.

If that would. Yeah.

So here's a couple things you said that really resonated with me. Just as we're getting into the conversation about. We, we. We. Nelson talked a lot about how we live by a paradigm and we kind of get fixated into a way of doing things as we get conditioned throughout life experience in our. In our time on planet Earth. And so we, you know, he would talk about it as though. Imagine that you're, you know, you're. You're a tractor and you're stuck in the mud and you're trying to get out, and you're creating these huge ruts, right? And they're in the. And the mud is so thick that the deeper and deeper you go into it, well, the harder it is to get out of that. Right. Okay. You get caught in that, in those ruts. And so we end up going through life and we start developing these thinking ruts, right? And one of the areas where most people, and many people have that is in the space around loans, because we're taught as consumers, we're taught as individuals that loans are bad. Loans are bad. Loans are bad. And so, you know, many. No, no. Anyone who's a real estate investor listening to this, like. Well, actually loans are great because I can buy more real estate. So.

Yeah, and they just all tuned out now, thanks to. No, I'm just joking.

It's all perspective, but from a, From a general consumer perspective, that is a common theme that we hear from many people. And so the. Trying to make the difference and get the jump across that in this scenario, what we're talking about, the infinite banking concept loans, they're not good, bad or otherwise. They're just a thing that we have to utilize within our life in some format. And if you want to do it, you should probably do it in the most efficient way. One of the most efficient ways to do that is where you can access capital to do the things in life you want to do, but still have growth happening on the other end. Your. Your capital continues to grow as though you never touched it. The power of collateralization allows you to do that as long as you're using the right kind of instrument.

Yeah, well, I agree with you. I think in addition to that, it's, it's focusing on. Okay, if you choose to. Because when you think about loans, you think about interest and people get focused on rates. And the emphasis through the process of becoming your own banker. The infinite banking concept, the emphasis is on volume and the emphasis is on energy. So are you adding energy to the commercial banking system when you borrow capital and you repay a principal and interest payment? You are adding energy to the commercial banking system. When you take out a policy loan from the life insurance company, regardless of the rate, and you repay that policy loan with interest, who are you adding energy to your own system? Precisely. And so Nelson told us, I don't know if you remember this, when we had him down and he was walking us through the. The examples that he outlined in his book, and we were sitting in this hotel kind of meeting space and over.

At the Holiday Inn.

And so he went through the example in the equipment financing, and then at the end of that example, he made the energy comment. He said, you know what I've done here? I've taken all of that energy away from the banking system that I would have otherwise added to it. And I pump that energy into my own system and it gives me capability to go and do what the banks would have gone and done, so the banks would have gone and lent that money out again anyway. And so when I did this post on Facebook recently, well, not recently, forgive me, a little over a month ago, describing how we recaptured interest on our principal residence. We took a 40 year amortized mortgage, got rid of the commercial bank in seven years, had a policy loan, significant policy loan balance. But we redirected the energy. So the flow of payments now is going back to our system versus flowing away from us and adding energy to the commercial banks.

Right.

Well, the. I think we're up to about 642,000 comments of people diving into. And I just want to address this. They're diving into things like you would have had to have paid an exorbitant amount of premium to achieve that. And how much premium are you paying into your policy? And this guy looks like a real bonehead. And why is he talking to me about this? And you must be clinically insane for borrowing money from a life insurance company. And don't you know that you can get money at a much lower rate of interest from a commercial bank? And you're just literally full of crap is what a lot of people were jumping on there and saying.

Right, because they don't believe their perception of the possibility that you actually were able to accomplish that is limited. Right.

And so I thought to myself, okay, where's this coming from? It's coming from either. For some folks, it could be a genuine distaste for learning.

Sure.

There's something new, something different. I'm not accustomed to that. I've arrived in knowledge. I've learned everything there is to know. There's no possibility of me being inspired to learn anything new. Okay, well, thanks for stopping by. As long as you leave happy for insulting me, then I wish you well. But for people who come on and they're asking questions, they're just really genuinely curious. Right. How's that possible? And how did you go about doing that? And so we lead people to a webinar, which we're having. Rich and I are co hosting. Super excited about that, by the way.

Apparently, we're getting good at this co hosting.

Well, and we're gonna do the. Should we have. Oh, we need a button titled the Big Sell. Okay, so here we go. For everybody who's tuned in.

For anyone who's listening to this and can't see us on video, we have this thing called the Rodecaster Pro. And it's got these really super cool, colorful buttons. It allows us to do things like this when Jason makes a certain joke or when I make a joke, you know, And. And so we.

We can do a room.

We can. We can program these buttons to do some different things. We just haven't got there yet.

But so let's do the the big sell. Okay. Webinar Tuesday, June the second. Yeah, head on over. Ease on over. Send in financial.ca/events or webinars or something. Just go to the homepage, click on events, enroll and there's an event there and there's no cost. But wait a second, there is a cost.

Your time.

Thank you.

There's always a cost. There is a cost in time. And then Jason's holding up for everyone to see in his his van white attire. The becoming Your own banker 5th edition unlocked the infinite banking comp banking concept by R. Nelson Ish. Now, policy loans. So we get a lot of questions about policy loans and what we're identifying is that it seems to be coming up more and more and as people are getting more exposed to the concept and a lot of these questions we get from folks, you know, it doesn't matter what point in the are in their learning and often we all have points where we might get our tractor out of the ruts, but then we might slide back into the rut, we got to hop back out again. So that kind of thing happens. Now when you're talking about redirecting energy and you did that in the example of your 40 year mortgage. You got it paid off to the commercial bank, you fired the banker.

Yeah.

And you replaced the banker with you and your family.

That's right.

And so now you and your family have this outstanding policy loan balance and what you're doing is you're taking the exact same payment. That's right. You were going to give whoever the other lender was, TD bank or whoever they were, it doesn't matter. Right. They were already getting money. You're just taking the same money that was going that way and it's going now back into a system that you want to control.

Right.

Now for anyone that's curious, one of the common questions we get is okay, well how do you pay these loans back?

Like, well, the answer is online banking.

With online banking and you make a bill payment, you just set up the policy as a bill payer and you make a payment to that respective policy. Right. And for many of our clients, they have multiple policies, so they'll have multiple bills with different policy numbers attached to it. Yeah. And, and as you're paying it back, every dollar that you put back into that system is a dollar that you can re access again for a later future date. Okay. Right. Now in the same respect, there's another component here in that as you're paying that back, there is interest on the policy loan to the life company.

And it's not enough.

It's not enough. And here's the reason why that's a great statement. Because the energy that Jason's talking about isn't just the financial energy that was going to the third party bank or lender that was, that was being pulled away from his family line. Yeah, I say his family line. I mean, it wasn't just Jason and his wife, it was the kids and the kids that are going to come after them.

That's right.

So that, that energy and all the capacity of that energy was transferred away to the third party bank. Now it's being transferred to the insurance company which Jason and his family are co owners of.

That's right.

They participate in the divisible surplus of the profits of that company on a yearly basis. Yep. And so if there's interest earnings there on the policy loan, there should be. The more interest earnings that the policy owners have, the better the divisible surplus for all of the owners. Everyone that's in that pool mutually benefits from what's taking place in that pool.

You talk about the kids, the kids get it. So kids have a much higher level of neuroplasticity. And we say this often, that's why it's better for children to learn a new language at such an early age. Well, if I can share with you, Rich. So when, again going back to that example, when people look at that. So maybe it wasn't the best example to lead off with in that video because for, for some people, they look at and they go, wow, that, that seems insurmountable to me versus because you start to, you know, you read those things about, oh, you would have had to put an exorbitant amount of premium in and there's no way you can get that kind of cash value. Like you have to wait 10 years or more to get that. So this is a person's understanding of there are certain types of whole life policies where, yes, it does take that long, but we would never utilize those for this purpose. But more importantly, here's an example of how our children think differently. And when I say our children, I mean children of our clients and just in general. Right. So rather than looking at that big example, $426,000 mortgage, the bank is out of the picture in seven years. There's a 200 plus thousand dollars policy loan balance. Oh my God, it would take me forever to do that versus one of my kids who said, I've been saving up money for almost two years. I know what I have in terms of loan amount available inside my system. I want to purchase this item. Can we sit down and work out a loan payment? You're 11 years old. And would you believe that proud dad moment right there? Oh, totally. And would you believe that? So in that instance. So my daughter said just that. And she didn't once talk about rates.

Right?

She didn't say, dad, you can, do you know that you can get money for less from rbc? She said, I understand that everything I put back in, I get to re access again. Because, dad, we're keeping the money in the family.

The money stays in the family.

It's like, you get it, you get it. So for our listeners, policy loans.

You.

Accumulate a pool of financial value inside of a dividend paying, participating whole life insurance policy. The policy is designed to begin accumulating accessible loan amounts available immediately. I say that one more time. There's no 10 year waiting period. It's immediate. Now we get to utilize that growing pool of financial value which is called cash value. It is contractually guaranteed to grow daily.

It must equal the death benefit by age 100. That is a foundation.

Yes.

Of a participating whole life contract.

Yes.

And so as we design them to increase incrementally increase the death benefit on a yearly basis, daily basis, actually, in many cases, then you're, you're always pushing that, that target farther out that pool of financial value, the cash value has to chase after it. Right. And so it's always accumulating, it's always growing.

And policy loans have been a lifesaver for people going through this COVID 19 pandemic. Oh, 100% clients of ours who have been clients for years, who are amazing people who would have otherwise been financially harmed significantly, but yet who are reaching out and saying through the use of policy loans, I was able to do things like pay off the remainder of my dental clinic, keep all my team members gainfully employed, take care of wiping out a small remaining portion of a mortgage, take care of payroll. In my business, knowing that I have at least four months of liquidity inside of my system, not one person talked about rates. They talked about access, control, hope, feeling, feeling relieved, feeling peaceful. So those are all things that you can't take a calculator out and go, let's compare that to the commercial bank, right? Could you imagine walking into the commercial bank and saying, I just got laid.

Off, can you lend me some money against my home equity?

Hey, my business is going to be receiving zero revenue until someone tells me I can reopen again. But would you mind extending a line of credit to me? I could really use my people and, you know, it just doesn't work that way. And so I gotta share.

I gotta share this with you. I got a video email the other day. It's fantastic. And one of my clients, amazing, amazing individual, just love this guy. And he's, oh, this is good. It's good coffee, he says. So I took a look at stock at all these, you know, different things. I have money working in, you know, I've got some real estate, some rental properties. I've got this. I've got, you know, I've got some private lending. I do some lending on mortgages. I've got all these different things. And so I'm looking at all the things that have worked well and especially during this Covid crisis. And I'm taking stock of that. I'm doing a monthly review of all my stuff and what I come back to and I look at, you know, kind of like the hierarchy of all the things. What always sits on the top of the hierarchy of the thing that gives me, allows me and my wife to sleep the best at night. It's performing. It performs all the time. I log in and I see my values have gone up. Yeah, doesn't matter. Everyone else is, you know, complaining about losing money. Mine's going up. And that's the, that's our, Our whole life process. That's, that's the stuff that we're working with infinite banking on. And I was like, I. I think I need to get some more of this. I said, all right, sounds good. Let's have a conversation about it. But, but it was just a. It was just a refreshing and, and fun video message to receive from someone who is doing their own. They're in, they're involved in the process, and they're constantly engaging themselves in more learning.

Yep.

And, you know, when we talk about these policy loans, one of the things that is the most critical for anyone listening this to take away is that these are completely unstructured. Now, I don't know of any other place where you can get completely unstructured loans unless you're aware of one. I've never heard of another location where you can do that. And what that means is that if you are, you need to make repayments. You dictate those terms. The insurance company is not going to show up. There's no white van with a, you know, company logo. And a couple big heavyset fellows come out of the van with the baseball bats and being like, hey, Jason, where's your loan payment? Yeah, Nobody. That doesn't happen because it's on you to do that. And so where people sometimes fall short here is that they need to understand the requirement that it's in their best interest to make those payments back. And we, we are often our own worst enemy.

Right.

When it comes to our financial circumstances. That's why Nelson spent so much time in the book, getting people to understand that the process of banking and the knowing how to do this, being an honest banker, the grocery store example of returning the peas on the shelf is one of the most critical aspects of the book.

Yeah, I agree with you completely. And what most people aren't aware of. So just finishing off the anatomy of that. So we got this pool of financial value. It's growing every single day uninterrupted. There's no stock market manipulation, there's no government intervention, there's no viral pandemic. There's no bad economic cycle that can take any of that away. It's fully vested with the policy owner on a daily basis. That puts you in a position of total and absolute control. What's the price tag of total and absolute control? But in addition to that, when you're in a situation where you've got all this control, you've got all this access, and you fully understand the characters in the financial play, guess who wins every single time? Because here's the deal. If you understand that you've got the depositor, that's character one, you've got the borrower, you've got the banker and the bank owner. For most people who are going to see this for the first time, they can relate to the first two characters.

In the financial play, the depositor and the borrower.

You got it. And so if you become the banker, so control and access, the banker is.

The one who determines do you get the loan, how much of it do you get, and how do you make your payments back, right?

And to access policy loans, there's no income verification, no credit checks, no qualifying, because you're the one that possesses that, that contractual control. And you have a guaranteed loan provision, Right?

Wonderful. Regardless of whether the pandemic wiped out your doesn't matter job or your industry or none of that makes any difference, doesn't matter.

And so when you become the bank owner, you become the highest paid character in the play. So if you just think about how presently. So set aside product, okay, Set aside policies. Just set all that aside for a second. Let's take the product and just move it over if you truly understand the importance of all four of the characters in the financial play, and you understand that you can become all four characters in the financial play, and if you understand that presently you are abdicating the responsibility of the banker and the bank owner to someone else in your life, the moment that you recognize that you can take control and you can become all four characters, everything begins to change. I promise you, even for people who that doesn't resonate right away, it's like, what? Like, how do you go about doing that?

Not overnight, it's not.

No, of course not. And so for people who are listening to this, make sure that you get your hands on a copy of our Nelson Nash's book titled becoming your own banker that's available. There'll be a link. Rich might even be able to add that in the comments. Or we can just add it in the comments after the post because our hands aren't long enough to.

Yeah, the computer's a little farther away than necessary for our current circumstances today.

But make sure you get your hands on that book and then make sure that you're speaking to someone on our team, someone who can help you. Someone who can help you identify the problem.

Now, you. You told a great little story about, you know, the learning lessons that you're having with. With your kids and how they're gravitating this concept. Of course, you have the family banking meeting that you guys do once a year now. I. I had a couple recently. I've been, you know, I have the. The wonderful joy. I get to often read to my daughter to put her to sleep. And she's two and a half. And so her favorite book is about a young girl named Fancy Nancy.

Fancy Nancy.

Yeah.

Okay.

And Fancy Nancy, imagine that she likes fancy things. Funny how that works. Go figure. And so she. She sets her eyes on these. These fancy red shoes, and she doesn't have enough money in her piggy bank. Okay. And so we get the. The piggy bank image. And, you know, I say, I say to Nor, I said, so that's where Fancy Nancy stores her money. Where do we save our money? She says, the Canfield family bank. Ooh, we do a high five. And then I. And then I say, well, what happens when we take our money out? She says, we have to pay it back. Another high five.

There you go.

And now she doesn't understand what we're talking about, but she's. She's grabbed. She's already starting to pick up on the cues and get involved in the conversation.

Yeah. Versus if you had said, yeah, you know what? When we take capital in the form of policy loans, we don't pay them back. So what are your kids, what example are they going to follow?

Don't pay them back, don't pay them back.

And so that's a polite description of theft from your own system. So let's face it, I mean, we all recognize that we're going to need the use of money now. This, this Covid. So I think we're in day 687,242 of COVID 19, social distancing measures and isolation and things like that. But during this, this just highlights it rich even more because again, if you, if you can avoid all of the anxiety around, what are we going to do? Where's the money going to come from? And you already have a pool of financial value available and you know that you can access capital from the insurance company that you're a part owner of and you control the repayment schedule and you're never interrupting any of your own capital because again, one of the, one of the misunderstandings. Why would I borrow my own money? Well, you're not borrowing your own money.

Borrowing the insurance company's money.

That's right.

And while you're borrowing the insurance company's money, the insurance company is growing your money the whole time.

Isn't that good?

That's super good.

Hey, can we get some comments? Because I think we have. Is it two people watching?

Oh, there's more than that.

Oh, there's. Okay.

The other thing I want to talk, I want to go back to energy because I really like how you frame that. And we're talking about, you know, we're incorporating some discussion about our, our kids here. And so when, you know, your, your, you and your wife and your children, you are all co owners of, of one insurance company. Now you have a few different ones in the family mix, but that's right. Primarily you've got a lot of that with one of these companies. Yeah. And so anytime that you're taking a policy loan or your kids are taking a policy loan and they're paying interest, they're all paying interest back to the same pool.

Yeah.

And they're all part owners in the same pool.

That's right.

And so it's, it is, it is going back into the family system, but it's also going back into a larger system as well and adding financial value back to all participants in that pool. And I think that that is so intrinsically important, we often lose sight of that intrinsic value because, you know, it's kind of like a. It's kind of like a, like a, like a co op type model where, you know, you. You become member. You're a member, you become a member and you get certain advantages as a member.

Right?

Well, it's the same kind of premise as that. Yeah. And the policy loans that we get from the insurance company, they are designed so that they have to earn a certain amount of revenue for the insurance company to support all of the activities that that company makes. And all their decisions are based upon meeting their guarantees of their product. Yeah. Which you, which is your product. So it just, it all intertwines together in a really efficient way.

What problem are you solving? Right. You're solving the problem, which presently for people is two things. Money's flowing away, and when that, you know, the money flows away from the family, they can't use it again. They can't earn interest on it again. Todd Lanyford made a great point in our podcast interview with him, and he said, you know, episode 11, when. When you borrow money and you have a loan, you have an amortized loan repayment schedule, you can see the interest, but when you save up cash in someone else's bank, you take the cash out, you purchase whatever it is that you. That you needed. You cannot see the lost interest, you cannot see the opportunity cost that you permanently have given up. Well, this solves that problem and then some. And the second is that it enables you to become all four characters in the financial play. Now, I want to reference something here real quick from Nelson's book, and it really resonated with folks. We did a webinar last night and it really resonated. I just want to reference this. This is on page 32 of R. Nelson Nash's book titled Becoming youg Own Banker. And Nelson says, this is. This explains what I mean when I say most people know there is a play going on out in the world, but they don't understand it. Worse than that, they can't get the characters in the play straight. Recalling that Shakespeare said, all the world is a stage and the people are the actors. They're on. People just don't play their proper role in the scheme of things. They have abdicated their opportunity and responsibility as it pertains to the banking function in the economy. They are depending on someone else to perform that job. And that character in the play is the one making most of the money, and rightly so. Because of the golden rule, those who have the gold make the rules. It can be no other way. So when you accumulate your own pool of financial value, gold.

Not physical gold.

It can be, well, yeah, we'll call it cash.

Sure.

When you accumulate that growing pool of financial value, you've got the gold now and whomever's got the gold makes all the rules. You're all four characters and that one character, the bank owner, is the one making the most money. That's you. Never mind product, never mind interest rates, never mind that. Yeah, it's not an either or.

We doesn't. We're not talking about death benefit or any of that.

We're not talking about any of that.

None of that stuff matters.

I'm, you know, I'm either going to invest in real estate or I'm going to look at this becoming your own banker thing. I'm either going to put money in the stock market or I'm going to look at this becoming your own banker thing.

That's a limited view of the world and thinking, because it's not an or option, it's a, an option. It's clear I'm going to solve the banking problem in my life and who is the banker and the bank owner. And I'm also going to consider doing all the other things in life that I presently want to do and have been planning to do.

It's a clear indication that when, when I hear that, it's a clear indication that we've got to go back to making sure that we have a clear understanding of the problem. Because if you don't understand the problem, the solution just won't matter. Because if you're, if you're thinking the solution is I'm either going to do one or the other, then there's a complete absence of understanding of the problem. When you get to live a peaceful, stress free financial existence that changes your outlook on everything. It really, it really truly does because you begin, opportunities begin to appear everywhere. And Nelson told us that, God rest his soul, he told us so many times, when you have ready access to a pool of financial value, opportunity will.

Track you down sometimes. He would often say, in fact, they'll hunt you down.

Yeah, yeah.

All right, all right. He would lean, he would lean in real close. Like actually, they'll hunt you down.

And now this is one of these moments, Rich, where we have to do a. Because we don't have any sponsors yet. So if anybody's watching and you're interested in sponsoring our podcast, we'd love to talk to you about it, but let's pretend to be a sponsor.

Okay? And now A word from our sponsors.

Now a word from our sponsors.

This podcast for a limited time brought to you by becoming your own banker.

The greatest book ever written on taking control of the banking function as it relates to your needs. Get your copy now@ascendantfinancial.ca book that ascend to financial CA books now. Wait, it gets even better. What's the better part?

I mean, it's pretty good if you just order the book. I think it's.

Okay.

Just. Yeah, just does. It doesn't need to be any better than that. It's already pretty good.

Well, special thanks to our sponsors over at becoming your own banker. Unlock the infinite banking concept. We appreciate your sponsorship.

They're great. Fantastic.

Thank you so much.

Now, another thing about policy loans. So one of the things that we get is often questions. Okay, well, how much do I have access to, etc. Etc. So with in Canada, primarily speaking, you have access to 90% of the equity in your policy contract. Now, that equity is the cash value that we're. Total cash value that we're talking about. That's accumulating. Yeah. And you can have access to that generally speaking, on any given day, Right. I think the lowest minimum amount is like 500 bucks.

I believe so. Yeah. I don't think that's changed in a while.

So. So that means if you wanted to, you know, if you didn't, if you had $490, they might say, I'm sorry, that's not enough for us to issue a check to your account.

Oh, we gotta share this.

But you could pay $10 and then you would have enough.

Here's another Rich. Oh, my God. I gotta tell you this.

Okay. What? You got super pumped up.

Oh, my God. Okay, so I was speaking to a meeting with another client yesterday. Now, won't mention names to protect. Protect. This client is amazing guy. Member of the Edmonton police service. Thank you for your service. You know who you are? You're awesome. Teaches the. Teaches new recruits about how to safely handle their firearm.

That's an important job.

That's a very important job. Absolutely. And so we had this great meeting and. And he said, I'm super excited. I took out the loan amount available from our policies in our family and we're paying off the mortgage. Isn't that good?

It's really good.

And so.

And.

And now you could just see that. Just that. That amazing, enthusiastic. Oh my God. Like we're finally doing it. And this is incredible. And then his imagination's working on how can I utilize the system and what. What are some other things that I can do now that I've achieved this amazing milestone in our family. He's got a young family, growing family. And so it was just so incredible to be in that moment, right to, to kind of be from the outside and just being able to celebrate it and congratulate him. And you know, when, when he first got going with his system of policies, he wasn't quite sure what he was going to utilize it for initially. He had some ideas, but it's just another success story of yes, you can do this and you don't have to be rich to get into the banking.

Business, which Nelson talks about right.

In his book all the time. And, and, and rich.

But it all has to start somewhere totally. It doesn't if you don't, you know, again, when's the best time to play? Nelson was a forester. So when's the best time to plant a tree? 20 years ago. When's the next best time? Right now. Right now. The other thing he would do, Nelson had this image. I wish we had the picture available. He had this image of this huge tree that he. That got cut down in his backyard.

Oh, with a tree stump.

Yeah, and it's a big tree stump. And there's like this image of Nelson standing over, taking this picture. And there's all the rings in the tree. You can see all the rings from the different years and ages and stuff. And so Nelson would say that, you know, look at all those, those rings of the tree. You notice how the very beginning, at the early stage of the tree, the rings, the size of the rings actually is quite large. It looks very big, but as you get to the outer rings, they get thinner and thinner and thinner. So the amount of growth on a yearly basis of the tree is. Appears to be smaller, but the appearance is deceiving because it's a thinner line but on a much wider, larger circumference of an overall tree completely. So the aggregate growth is actually much larger. And that's a, that's, that's again about how people have a misleading or misinterpretation after we take face value of things that we see and we don't, we don't peel the onion far enough to see what's actually going on at a deeper level. And often I think policy loans is one of those areas where this happens for people quite regularly.

I love that. And it's so good. You know, every time you read R. Nelson Nash's book, you see something that you didn't see before. It happens all the Time. And, you know, one of the things thinking back to, you know, maybe the first time or the second time that you read the book on page 52, Nelson says he's building equity in the wrong place. He should be building equity in the banking business that finances his trucks. His accountant tells him, look at how you are building equity in your equipment. And Nelson says that's true, but he's building it in the wrong place. Everyone should be in two businesses, the one in which you make your living and the other should be the banking business that finances whatever you do for a living. Of the two businesses, banking is the most important. Isn't that good? And, oh, hey, Vernon, we're supposed to be on a call here in a few minutes. Running a little behind.

Love you, brother.

He's, you know, we had a great call earlier. So Vern, you know, he's a coach and amazing advisor on. He's one of our teammates, actually. And I remember, you know, part of the meeting, I just kind of leaned over to Rich and I'm like, I love this guy, man, because he's like, we gotta go get it and we gotta, like, he was just on it. It was just.

We thought he was gonna, you know, flip his table over, jump through his computer screen.

Oh, yeah, he just, yeah, he got me going.

Maybe it's the cooped up pandemic getting to him. I don't know. I don't know.

Like, yeah, it's, you know, he's a great dude. Great dude.

So final thoughts on Paulson's. I have a feeling, you know, we're gonna have to circle back to this topic again a number of times. Yeah. So is there anything that you, you know, thinking about this being all about policy loans? We're all, you know, it's all interconnected, so we have an aggregate conversation with a lot of different things kind of pooling into it. But what would you like to leave the podcast episode with for folks who are thinking about policy loans? And what final thoughts would you like to share about?

Well, I'd like to share, most importantly, that if you, if you're going through a period of introspection and you're looking at your financial circumstances and you're thinking to yourself that you want to make an improvement. If you already think that you're doing great, I'm telling you, there is so much more potential in your financial situation. Anything that you're doing financially is radically improved when you introduce the process of becoming your own banker. So don't delay doing that because the longer you wait the more you penalize yourself. That would be my deep thoughts.

Deep Thoughts by Jason Lowe. So one of the things I would like to share is. So another very good friend of ours, wonderful, wonderful guy, his name is Jim Oliver. Jim, you know, he says that, you know, policy loans.

Sure.

You're going to pay interest in the Life company. And we've already talked about all the advantages of actually doing that. He says you have total control and liquidity over that capital, especially as a business owner.

Right.

You're building up this new business. You've got your business where you make all your money. You've got this new business, started this, the banking business. You're building it up. You're building it up. You're building it up. You're putting deposits in. You access some money to go buy a piece of equipment to go do whatever. Sure. There's going to be a cost of doing that because you, you had to. You have. Your money's growing in another place. Right. So. Okay, well, I now have a policy loan. Okay, well, the interest that you pay is often offset. Maybe not completely, but in many times it is completely offset by the growth of the policy. So. So what if you're paying interest to Life company? I mean, you have total control. Nobody's coming to tell you how to run your business. Nobody's telling you you can't have the money.

Yeah.

Nobody's telling when you. When you got to pay it back. Right. The only person that needs to tell.

You that is you. That's exactly right.

I think that's a great position to be in.

I think it's an excellent position to be in. In fact, we know firsthand, been practicing this process for a little while. And the more I see, the more I see, I didn't see. And the bigger emphasis on focusing on the problem, understanding it has really taken, you know, things in such an interesting direction. Like we, Rich, we. Vern, you're on here, and maybe some of our other teammates are watching this. We are busier than we've ever been. And we made a shift. We made a shift away from. Let's demonstrate all of the features and the anatomy of a product so that people get excited about the product and then we'll talk about the problem and how to solve it versus let's first focus on understanding the problem. And we were doing that. I don't want to say we weren't doing that, but we just weren't doing it to the degree of emphasis required.

And we're, we're. Nelson Nash would say, I might Be a little slow, but I'm worth waiting for. And one of the, you know, so going back to those earlier days, a lot of that product focused aspect, that wasn't about what our clients were looking for. That's about what we were doing to, you know, enhance our own internal knowledge. And so it's funny that you mentioned that because we, you know, I have, I have an advisor that I'm reaching, I'm speaking with tomorrow. I've had another one reach out to me earlier this week. And so we're constantly getting contacted by advisors and we encourage that because if there's a way that we can assist you or point you in the direction of the Nelson Nash Institute to become, we need, we need good people who want to embrace this concept to teach it and take it out to their marketplace completely. And so consider joining the Nelson Nash Institute, by all means. But, you know, they're, they're always focused on product related questions. And that's okay because that's simply where they're at in their learning experience. But the reality is that's not where your attention needs to be. Right. And, and if you take your eyeballs off of that a little bit. So Nelson, he would. I remember it was many years ago. We were at our Infinite Banking Conference think tank event down in Birmingham. And it was a social event. We always have a social event there. It's a wonderful time. And then Nelson and I were standing in the lineup. He was getting a. He always liked to, after dinner, have a little Merlot. And so he, I remember what our conversation was. He just got really excited for a second and he, he kind of tugged my arm and he pulled me aside and he. There was this open table.

Yeah.

And so he grabbed his glass of wine and he points at the bottom, he says, now, Richard, look at the bottom of this glass. If this glass at the bottom of this glass represents everything that I know about the world, now put it down on this table. And he had this right on the edge of the table. Yeah. And imagine this long, kind of long skinny table or whatever. He says, now look at this table. This table represents everything there is to know in the known universe. Everything that's out there, all the knowledge in the world. Now take a look at the bottom of the glass. This is, look at the circumference, the outer edge of the glass. Right. Notice where it touches the edge of my knowledge. That's where I'm exposed to that which I do not know. Wow. And then he would, then he, then he would. He took the glass away. And he went and grabbed a. Like a pitcher, like a water pitcher. Much larger circumference on the bottom of the glass. Right. He goes. And he sets it down. Now, Richard, we always strive to increase our knowledge. If you're not growing, you're dying. And then he. And then he puts it down. Now, look at the size of the circumference of this picture. If I increase my knowledge, I know an awful lot more. I know a much bigger surface area of this table, of what's out there to know. But what's more important is take a look at the circumference of the picture. Look at how much dramatically more I've expanded. I have exponentially increased my exposure to that which I do not know.

Wow, that's deep.

And so the key takeaway, the teaching point is that the more and more that we are increasing our knowledge base, the more that we are expanding our horizons to the things by which we. That we do not know. And so our continual need to be open to explore and understand and learn new things is one of the defining characteristics that I think makes or breaks it for someone who wants to pick up this process and incorporate it into their life.

Oh, completely. And I would just add to that and say, you know, sometimes. And I think that we can all say that we've done this at points in our lives, is that, you know, we've reached what we later learned to be an absurd conclusion with limited information.

I've done it.

And so we can all say that we've done that at some point in our lives. And so for people who are exposing themselves to this process, just challenge yourself. Challenge yourself to receive the inspiration to learn something new. You'd be glad you did. And what do we got here? Do we have any comments? Do we have any questions?

There's. I don't see any questions. A lot of just, you know, nice comments and stuff. But ultimately, we appreciate everyone who listen in on the live. We appreciate those listeners who are going to be picking this up on their favorite podcast player when it's released.

Yep.

And likewise to our YouTube subscribers who will also be getting this at some point. So if you have additional questions or things about our topic today or if something resonated with you that we said that you just found to be a really cool aha moment, like, hey, just share that with either someone else or share it with us, we'd be happy to know. Oh, I'd love that. Because we're just trying to add value where we can. And the reason we're doing that is for you, if you're a listener. That's the purpose.

That is the whole purpose. And so stay classy, Facebooks, and we'll see you on the next episode of wealth without Bay Street. Have a great weekend, everybody. Be well, have fun, and make sure that you read becoming your own banker. Was that. Was that, like, impactful enough? Like, was that a should have been higher energy or should I?

I think it's good. They got the. They got the message.

I know it's kind of slow, though.

That's okay.

Okay, thanks.

I'm pretty sure that if anyone stuck with us this long, I'm pretty sure they. They recognize there's certain points where it's a. It's a little slow.

Oh, these. These Fridays, you know, Pocket Fun podcast Fridays. Yeah, Fun podcast Fridays. We're going to keep doing that. We're going to keep going live every Friday until Mark Zuckerberg calls us and says, we love wealth without Bay Street.

I don't think his voice is anything like that.

I don't think it is.

The other thing is my immediate reaction is like, what's that one show? It's like, you know, I'm not prone to hyperbole. I was on that. The Fiber fix commercial. Yeah. Yeah, exactly. Don't just fix it. Fiber Fix it Saturday Saved. Okay, anyway, thanks a lot, everybody. Have an amazing rest of your day.

Take care, everybody.

Thanks for listening to the wealth with Elbay street podcast where your wealth matters. Be sure to check out our social media channels for more great content. Hit subscribe on your favorite podcast player and be sure to rate the show. We definitely appreciate it. And don't forget to share this episode with someone you care about. Join us on the next episode where we continue to uncover the financial tools, strategies, and the mindsets that maximize your wealth.