Why I Lend Money from My Life Insurance (It’s Genius)

I can charge a little bit higher interest because I can be unsecured. Because we're really, for me, the risk, like we talked about before with the trade, you know, you're trading your heartbeats for, for your soldiers, for your money, for your capital. When that capital is locked away and still working, you can take a little more risk with the lending out. So. And with, with a little more risk is a higher interest rate. So my returns are much higher now using the policy than they were before because I generally just do promissory notes at this point. Promissory notes. And I keep my, I keep my lending smaller. $50,000. That's what I limited at. Pull it out of the policy and lend it out. Because in my mind, I feel comfortable knowing that even if they defaulted and everything else, it's not going to be a pretty situation. Of course, you hope that that never happens. But my soldiers are still alive. They're still in there and they're still compounding daily, you know? Yeah, every day. Right. So it, that was the biggest change for me when it comes to private lending. So my returns are, are definitely higher now than they were even, even with, you know, this is where all the naysayers come in. Well, why wouldn't you just lend out your money, you know, and, and take all the interest yourself and not pay interest to the policy? Well, they don't understand that the policy is shared ownership. So who am I paying interest to? And this is something I try to explain to them all the time. And now I just have a screenshot of the chip. My first check that I got at the end of the 12 months of the first year, I'm like, here's how much interest I paid, here's how much I got back in dividends into the, back into the policy. Yeah. So, yeah, so that would be the biggest change for me from prior to the policies to now would just be the actual return on the investments, and the return is forever. I think that even though I got start, when I got started, I still didn't grasp how it's possible. Right. So you can read the information, you can do all that, do all of that and prepare yourself. But until you get started, it still doesn't even make sense in your mind. Right? So, so I knew the concept behind the whole thing. I knew how it was supposed to work. I talked to Jason, we talked to Sarah Blow. I knew the concept, but even right down to after starting the policies, I still couldn't understand how this was going to work. It just didn't make sense to me. And maybe it was because of all the negativity in the, in the, in, you know, over the years that you see on YouTube and all of this kind of stuff. It was probably because of that creating some sort of a mental block for me where I just couldn't grasp the concept. So I would say it would probably within three months then I start to realize, wow, I can do this and I can do this and I can do this. And that was totally wrong. And that was totally wrong. And. And your, your. Your mind just starts to expand and accept the whole thing, and then you don't even understand why people don't get it. You know, that's. For me, that's the biggest thing right now. Like, what do you mean you don't get this? This is easy, you know, and I often talk about, you know, when I, when I forward somebody to, to Sablo, I, I often tell them, you know, use my, my policy and everything I've talked about today is, is. Is kind of a guide. But the benefit of talking to Sarblo and talking to the team is that they're going to design something for you to make sure you're successful. Right. So you can use, use my examples as a guide, but it might not apply to you because, you know, my policies were set up knowing that I have a. Something to fall back on as far as the real estate portfolio, you know, equity and all that kind of stuff. That reminds me of a quick story. I know that you can edit it and chop it up so the story might go in somewhere, but I remember the first time when Jason and Sao came back to talk to us after we had sent all our information up. I think Jason said to me that when he saw the amount of interest I paid in the previous year, he nearly fell off his chair. Well, I actually did. What was it, 400 recovering from that. Yeah, was something like 400,000 in interest gone to the wind, you know, from the, from the year before. But yeah, so to answer your question, that's basically what it is, is. Is what, you know, you're just dispelling all of these things that you've heard. And, and once you, once you get moving on it, that's when you really start to, to see the benefits of the whole thing.

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There's also a lot of different types of policies. Right. So I find that it gets, often it gets blanketed into just a normal whole life policy. And yeah, you know, the first, the first thing you get is, oh, I have a whole life policy. And they told me that my funds are locked in for the first 10 years. I can't touch anything. So you don't know what you're talking about. You know, I get that quite a bit. And, and I always say, oh, that's unfortunate that you locked yourself into something that doesn't work.

Yeah, that's a really good way of addressing.

And I think, I think another, another thing that I like to tell people is it's the fact that, that it's not locked in like that. So really what that means is you're, you're not losing access to your fund. Right, Right. So there, so why not do it right? It's basically a throughput. So if it's working, then great. You know, if it doesn't work, then, then, well, you'll look at the options at that point. But there's no harm in learning the information, you know, sitting in on the webinars, getting everything set and putting into motion. And let's see what, let's see what happens. You don't have to start with a hundred thousand dollar policy. You can start with a, you know, five thousand dollar policy, seven thousand dollar policy, whatever the minimum is. I don't know, but I'm sure that there's a mint, there's, there's a small policy that you can start and start seeing, oh, wait, you know, wow, I'm $5,000. I'm making, you know, $8 on $5,000 at the end of the month, every single month for doing nothing like, and then compounding, now it's 5008 and then 5600. And now you're buying, you're taking your family out to dinner and you didn't have to earn that money. I mean it, there's no reason why, in my opinion, why you wouldn't just set it up and see how it goes rather than just, you know, stick to these views that you've been indoctrinated with. You know, what you, what you've learned from your parents, what you've learned from all around. Just give it a Try. And really, I think this is probably easier for entrepreneurs to grasp. Right? Because entrepreneurs, oh, yeah, you know, we're sort of risk takers as it goes. And we're like, yep, that sounds great. Let's try that too. Let's try that. You know, simultaneously. Whereas if you're talking to somebody who's long term, rrsp, tfsa, you know, that's what they see, that's what they do, or they have some sort of match program from their, from their company. But I always tell them, yeah, those are great programs, but hopefully you don't outlive your investment. Right. That's the main thing. If I'm going to invest in a vehicle, I never want to have, I never want to have the possibility of outliving that. Right. I don't want to just run out of money. So bottom line is if you just set up a policy and you don't take advantage of it and you do have the, the death benefit, there is still a compounding every single month. If you need money, you can draw it from there. You know, there's a daily compounding interest. It's going to accumulate over time. You're never going to outgrow that because it's always going to be there. So it's just a peace of mind on top of everything else. It's a, it's a huge peace of mind. So I try to dispel as much as I can with all that misinformation and maybe you're set up with the wrong policy or you're on this five year limit or, you know, there's so many things out there and that. And also in that same subject, there's a lot of people that claim that, oh, I know all about that. You know, I used to sell that. That's what I get. Battle. Oh yeah, I used to sell that. Or I know somebody used to sell that. I'm like, yeah, I used to sell it.

Okay, Art, it was a pleasure having you on the show. And as we often say to all of our viewers on the YouTubes, you're going to see another video that just popped up. Credit to our editing team because we want you to continue your journey of learning. Much like we've talked about today, there's no such thing as having arrived in knowledge. There's always something new to learn. And so click that next video. Continue that journey of learning. Guys, this was awesome. And Art, wishing you an incredible journey through to the Bahamas and spending time over the winter there. As you mentioned before, we started the show and we just wish you a safe, pleasant, incredible journey. And Sorbil will be in touch to talk to you about.

Yeah, sure.

Joining the team.

Okay, that's great, guys. Thanks for. All right, thanks, guys. Have a great day. Okay, bye. All right.