How Infinite Banking Fits Alongside Investing

All right, bankers got more control. Scott, um, we've got somebody that says in the policy.

What else?

What else we got? In the policy. We've got— all right, whole life in the policy. All right, all right, so we're getting a lot of the banker has more control and in the policy. B has control of more funds. Banker has contractual guarantees. I love it, guys. Thank you so much for sharing. All right, all right, spin number 2. All right, guys, tell me. We've got Stan, $20,000 in the market. Kurt, $20,000 in his policy. And we get a big win for this year, 15% on the market. Tell me What do you think Stan's outcome is going to be? What do you think Kurt's outcome is going to be when it comes to stress, opportunity, cash flow, and control? What do you guys think? Who do you think has more of it, Stan or Kurt? The banker, the investor. Brian said the investor could stay in cash but has the same position as the OBC guy or the IBC guy. It not only applies— or it's not apples to apples. You are 100% correct, Brian. Thank you so much for saying that. We're not trying to compare these apples to apples. It's more of just we want you to understand the emotional control and connection to each one of these events. I don't want to make— I don't— I want to make sure I'm letting you guys know I don't want this to be an apples-to-apples comparison because it's not. Investing and life insurance, 2 completely different things. I want to show you is what it feels like to be in this position when you have absolute control and when you're letting the market control your opportunity. All right, thank you so much for that share, Brian. All right, how did they fare, guys? All right, so the market goes up. Market goes down, store it. Seems simple. Stan, how do you feel right now as 15% up on your money?

Jay, I gotta tell you, I feel pretty good about that. You know, that's a real nice return over 1 year.

Okay, awesome. Right, talk to me about your liquidity, your control, optionality, and stress.

Well, liquidity, yeah, I can sell my equities, no problem. Control, I can do that. I don't control the market, but I can control what I do with the stock that I have. Optionality. I really only have 2 options. I can either keep my money in the equities or I can take it out. Stress? Well, that's really depending on what's going on with the investment itself. When it's up like this, I don't have any stress. But when the market corrects and it goes down, I have a lot of stress.

Love it. Thank you so much for that share, Stan. Curt, how are you feeling right now? Your money's in the policy. It's not in the market. Tell me how you feel.

Oh, it's okay. Everything's going pretty good. I know, not too worried about it. So sometimes you win some, sometimes you lose some. I didn't really take any risk at the moment. I wasn't convinced that the market was where I wanted to be at the moment. So I'm just kind of sitting, still sitting with money in my policy to take advantage of the next opportunity that comes along. There's always going to be another opportunity. So I'm just waiting for the right one that fits what I want to do. I don't want to take a ton of risk. Just to try to take advantage of something. So it's okay, my cash is still growing even while it's in my policy. And so I feel like I have a ton of liquidity, I have all the control, I still have a ton of options, and I really don't have any stress because I'm not too worried about it yet.

Love it, love it, love it, love it. Alright, spin a chance. $15,000 is required right now. Again, how do you think they're gonna fare, guys? Do you think Stan is in a better position to act, or is Kurt in a better position to act? What do you think? Stan is stressed. I, I would understand that, right? Depends on if the market's up. If the market's up, Stan's Stan's not really stressed. He can sell some of his assets. If the market's down, yeah, I can see where Stan could be stressed there. They both can act. You're 100% correct, Mike. They both can act. Stan looks ready. Let's see how ready he is. All right. All right. Game board changes. Rental opportunity. A business marketing opportunity. It requires $15,000. You need it right now. Stan, tell me how you're feeling.

Well, Jay, that really depends on what the value of my equities are at the moment.

Okay.

You know, if I'm above that number, I'm feeling pretty good. But if the market has dropped and I'm below that $15,000, I'm not feeling very good because I won't have the sufficient funds to act on the opportunity.

Okay. You think that gives you the control and the options, or does that create some stress for you?

No, it's more of a stress item for me, Jay.

Okay, Curt, how are you feeling?

I'm feeling pretty good. I mean, obviously if I had to have taken a loan earlier, I may not have as many options, but it depends how much cash I've got in my system. If I've already got— maybe I have $50,000 or $100,000 of cash value and I borrowed $15,000 to take care of that emergency before, but I've still got more dollars available to take advantage of an opportunity when they come along. So this is a really good one, might be a great time to take advantage of it.

Okay, and I just want to make one point of clarity. Each one of these spins, you're all both starting at essentially $20,000. Okay, so the policy could have gone up, we know it's not going to go down. Stan's investment could have gone up, it could have gone down. Right? But the point is this: who has control? And you said it best, Kurt. So thank you. All right. This is where behavior gets tested, guys. You got to either stay the course. You have an— you have the option to choose, or do you panic? All right. Spin 4. Market is down 30%. This is like a 2008 scenario. I'm not saying this happens every day. But it can happen, right? So what do you guys think Kurt is feeling? Do you think he's stressed? What do you think Stan's feeling? Do you think he's stressed? Tell me in the chat. Ah, Scott, both are stressed. Oh yeah, Kurt could have been like, man, I could have had that money in the market and then I could have lost it. But Mike's right. Kurt could care less. Marie, Marie, I love it. Kurt is cool as a cucumber. I love it. Thank you so much for sharing. That's awesome.

Marie knows me well.

All right. So most people do not fail because the market moves. They struggle because they need money at the same time the market moves against them. All right. So it's not about the market going up and down. What we want to show people how to do is we want to show you how to take advantage of the market when it's up and take advantage of the market when it's down. Because as Kurt always tells me, if you go to the mall and you see your favorite jacket on sale, and that jacket is on sale for 15% or 20% off, Are you gonna buy it? Let me know in the chat. Would you buy your favorite jacket at the mall for 20% off? Yes or no?

Heck yeah.

Perfect, right? So of course. So this is the same thing. When the market's down, we don't need to freak out and, and, and sell all of our assets. We need to double down. But how do we double down? We want to double down from a place of control, and that's where I believe Kurt has the best benefit. Stan's probably got some other assets. Remember, we're not talking about those other assets. We're keeping this simple to one investment and one life insurance policy. Everything else is out. We're just talking about how do they feel in the moment. So, chat, Tell me, our audience, if you guys could tell me if you could, or what could change emotionally when you don't have to sell your assets when the market goes up and down. Are you feeling a lot better in that scenario? Maybe it's retirement and you have to pull money out, the market's down, but you don't have to. Maybe you've got another asset. How would you feel if you didn't have to sell in a down market? Let me know in the chat. Dan saying much better. Yes, that would be much better. I would feel great. Evelyn said of course. Nice or nice coasting. I think that's what they said. Sorry, it's moving fast. You have opportunities. I wouldn't sell my assets. Well, David, sometimes you might might have to. Right again again there's mandatory distributions something like that things like that where. You're forced to sell. But if you didn't have to, you would have, as Jeff says, peace. Okay. All right, Stan, market's down 20 or 30%, man. How you feeling?

I'm feeling pretty rotten, Shay. I am not a happy camper. I'm feeling stressed and worried about my investment. And yeah, it's just not a very good feeling.

Okay. All right, Kurt, how are you feeling?

I'm getting pretty excited because I'm seeing stuff on sale, and it might be time to borrow against my cash value and buy some stuff that I've been looking at buying, because I think it's going to turn back around here maybe in 6 months to 12 months, and I'm going to take advantage of it.

As Walter just said in the chat, the market usually goes back up, and you're 100% right. Curt is in the perfect position to buy into the market on sale, just like that jacket at the mall. And when the market rises back up, he can just sell off some of his assets and boom, his policy is replenished. That's the opportunity and control that Kurt has right now when it comes to this specific situation. Let's move on to the next one, shall we? Alright, nobody plans for this card. Oh no, leg! Somebody broke their leg, right? We got medical expenses due right now, $10,000. Okay. Chat, who has the better— who's in the better position to act right now? This $10,000 medical expense is due right now. Who can act out of a better position?

Kurt. Kurt.

Everybody says Kurt. Marie says Kurt. Evelyn, Kurt. That's exactly right, because Stan would have to Sell an asset that he may be needing in the future, right? He's going to take that compounding and liquidate it now to go and take care of this life. Life is always going to happen to us. You always have the opportunity if you have a policy from a place of control. Again, I'm not saying investments are bad. But I want to show you how you can use your system. We're gonna get to that here in a second. Use a system like Kurt to create opportunity just like Stan. Alright, nobody plans for this card. Emergencies always happen, and I'm gonna guess here, right before Stan and Kurt say anything, I'm gonna say Kurt's probably in a good position. He's happy. He understands that life happens. He might not be happy for a broken leg, but He might be in a position like I can make sure I can take care of that medical expense. On the stand, might be on the other hand. Oh, maybe Stan's like I got to sell my assets. I have to, right? And now I give up the future opportunity. Am I right, Stan?

You are 100% right, Jay.

Awesome, Kurt. Did I hit the nail on the head?

Yeah, I mean, obviously you'd hate to have any. Major health issues happen, but sometimes they do. And thankfully, I've got a pool of capital that's just sitting there waiting for me to use it under my control, and I can then choose to pay it back as I'm recovered or somebody in my family is recovered. We have the control on how to choose when to put it back.

Love it.

Spend 6, opportunity versus liquidity. A great investment has arose, and the opportunity is available. $25,000. Can you act? Check. All right, we know both of them have got $20,000. Neither one of them can probably act right now. But who is in a better position to act at this $25,000 opportunity? Let me know in the chat. The banker, Kurt. Pete says Kurt. Evelyn says Kurt still remains ahead. The banker, the banker, Kurt. All of you, I salute you. All right, the market may give you fruit. A business may need capital. Real estate may need a down payment. Life does not wait for perfect timing. So who is on the offense? And I see you guys have a resounding answer of the banker is on the offense. Okay, so Kurt, tell me how you're feeling. You got a $25,000 bill here for a business opportunity. Something needs capital. How do you act?

Well, it's an opportunity I can begin to investigate. If I've got enough capital, it's something I can look at. If, if I, if I don't, it's something I can still try to negotiate. Maybe I can get a partial opportunity if it's worthwhile pursuing. But I can at least ask questions and take advantage of the opportunity if it makes sense.

Wonderful. Stan, how are you feeling?

Well, that really depends, Chay, on what the price of my equities are at.

Okay.

I, I'll feel good if my equities are worth that much, but I'm not feeling very good if they're not.

Okay, so it goes back to— it seems to be coming back to control, right? Kurt may not have enough, Stan may not have enough. They both may be able to act, but one has to sell out of a position in order to act. The other Can act, and maybe you maybe can negotiate some terms. I would say they both probably can do that, though. All right, let's talk about the banker's playbook for a second. Kurt, you got control of capital. Your capital continues to compound where possible. Your finance life is very intentional. Money is going into a system you own and control. And you have the opportunity and the timing to act when you think it's best, and you want to think like a banker. Tell me why these 4 options are so important as a banker.

Well, I think, you know, control is the most important thing because, again, it gives me— we've used that word optionality quite a bit, and it gives me the ability to take advantage of things when I want to and if I want to. And I'm not forced to make a decision if there's something that just doesn't seem right to me or the numbers don't add up. Obviously, my capital in my policy system, it's growing no matter what. Like, it keeps getting bigger every single day, whether I take advantage of an opportunity or not. So I haven't stunted the growth of my capital while I'm waiting for a great opportunity to come. So therefore, I can be very intentional With what I want to do in life, and it helps me just to, you know, continue to be able to have the ability to use money when I want and how I want and pay back the way I want, like a banker determines.

Okay, this next slide is how infinite banking, or how this concept of becoming your own banker, works. This is how Kurt has been using it this whole game. Kurt has put his money into a banking system, which is a specially designed whole life insurance policy with a mutual company that pays dividends. Okay, we're not looking to replace opportunities. We want to change you— how we want to change how you react to those opportunities from a place of control. So that system sits in the middle. So in each one of those situations, a real estate opportunity comes up. Kirk can come from his system, his life insurance policy, can go purchase that real estate. From his life insurance policy, he can go tap into that business. From his life insurance policy, he can take care of emergencies. Since it's life insurance, he's got legacy and family protection taken care of tax-free. When that death benefit hits and he's no longer on this earth, which is one thing that's going to happen to every one of us on this earth, I don't know if you know that, but it is. Kurt is going to leave tax-free money to his family. That is a game changer, wouldn't you agree, chat? Jeff says you finance everything you buy, you either pay interest to someone else or you give up the interest you could earn. I think you've been reading a book called Becoming Your Own Banker there. Jeff, I just think you have.

Okay.

Hey, Jay, I wanted to point out something. The thing that gives me the most freedom in this process is that not only do I have the ability to borrow against my policy system to take advantage of an opportunity or to fill in if an emergency comes along, but I've never interrupted the growth of my capital in the process. When I see what Stan's having to deal with, Stan, whether he takes advantage of an opportunity or has to deal with the same emergencies I have to deal with, he always has to give up the asset so it stops growing one way or the other. And to me, I think that's a double win for me.

So, well, Kurt, you just brought up a great point because here in a second we're going to do a case study. We're going to show how both you and Stan invest in the same opportunity. And what you guys are going to do is you guys are going to see how Kurt and Stan get to take advantage of the same opportunity, and you're going to get to see who has the better outcome in the end. Stay tuned. Okay. All right. Race to retirement. The traditional investor has market risk, has depending on the market, has less control because that is 100% on the market. Timing is dependent on what's going on in the world. He has fewer options and his retirement's uncertain. Chat, I just want to ask this question. How many of you, if you could just give me a thumbs up or a yes or no, Know somebody who is a 401 millionaire? Just what do you think? No, no 401 millionaires, or maybe an RRSP millionaire if you're in Canada. Doubt it, right? We have been influenced to believe to put our money in a system where somebody else controls it. The market is what determines the growth, and that's where we should store our retirement. Even though I don't believe in retirement, that doesn't make sense. On the other hand, the banker has built-in guarantees. He can create option when he chooses to. He gets to control. Where the capital goes. He even gets to control the growth, guys, folks. He gets to control the growth. How does he do that? By paying more premium. He gets to choose to grow his system because the more premium you put in, the bigger the outcome is going to be on the end. Our RESP millionaire, our RRSP millionaire. Love it, Evelyn. So flexibility. And a brighter future in retirement. I'm not saying infinite banking is going to be your retirement. I'm not saying that. I'm going to say it is going to be another option in your quiver or an arrow in your quiver for retirement, not just your only. Okay, give me one second. All right, so how do they fare? Player 1, Stan, how are you feeling? It's retirement time.

Well, that really depends what my statement tells me, Che.

Okay, that's fair.

And you know one thing, Che, that, you know, nobody really thinks about, and I have this discussion with clients sometimes. They'll tell me, okay, I've got, you know, $500,000, let's say, in my RRSP. And I ask them, do you? And they say, well, what do you mean? I said, have you accounted for how much the government is going to take of that? And their eyes just get really wide open. That's something that people don't really remember. When you start pulling that money out of your RRSP, the government is going to be waiting there for you.

Thank you so much for that clarification, Stan. And Stan, could you clarify for me, RRSP in Canada is like the 401 in the States, or is it like the Roth? In the States?

It's like a 401. I mean, I'm not as familiar with the US retirement strategies, but it's basically, you know, it's a retirement plan. So you can put in capital into an RRSP, it grows tax-free, you get a small tax break when you do contribute into the system. However, when you take it out, that's when they hit you. So it's kind of like something Dan, our fellow advisor, has written in a book. You know, it's either the seed or the harvest.

You know, that's a good one. They're going to—

they're going to get back a lot more than what they've given you in a break. Let's just put it that way.

So it's like for all of our U.S. participants, it's like a 401. Money goes in after tax or pretax and it comes out. It's taxed as it comes out. All right, Kurt, tell me. How are you feeling in retirement?

I'm feeling pretty good. Once again, life hasn't really changed as far as stress is concerned. I've got options still, and if I really want to, if I need some more income, I could— my policy has the ability to change the dividend option from reinvesting and buying more death benefit to I could just take it as cash, all tax-free. Give me some myself some extra income. I can still borrow against it in order to you know take advantage of another opportunity that comes, and life is still pretty much the same. It's feeling pretty good.

Awesome, Dan. Thank you for sharing the Roth is similar to the TFSI. I appreciate that. All right, all right. So post game case study, guys. So what we're going to do is we're going to take the same twenty thousand dollars back at spin one. We're going to take a direct path via Stan. Stan's going to invest that $20,000 just like he did at the beginning. And we're going to take the banker's path, which is Curt. Curt is going to take that $20,000 and pay his premium. And then Stan is going to take $20,000 and invest. Curt's going to take only $12,000 and invest in the same opportunity. And we're going to talk about How both of those are going to benefit both of them and see how they turn out. All right, so the direct path first. Let's talk about Stan. You invest $20,000 directly into the market. Let's say you get 20% return. Let's say it's in some dividend-paying stocks and you're getting upwards of 20%. I don't know. This is just a simulation. Okay. Over a year period, guys, $20,000 invested for one full year at 20% is $4,000 gain. That's great, great result. Stan, I am assuming, is probably gonna be really happy, right? He owns his investment. Stan has $20,000 is at risk though. We have to make sure we understand that Stan's money is on the line. It's on the chopping block. And if Stan Or the market goes crazy and he doesn't get that 20% return. Let's say next year the market's down by 10%. Right now, we have got to average out this whole thing. We're not going to get into that right now. But understanding that Stan has grown his capital by $4,000, and if he still needs access to that capital, he's still got to sell. Overall positive result. Great job, Stan. The banker. The banker is going to put his money into his policy as premium, and he's going to then turn around and use the life insurance company's dollars to exercise his right and opportunity to act in an opportunity. Same opportunity. Kurt is going to put his $20,000 in his premium, and in this specific case and scenario, how it has been designed, he's only got $12,000 available of the $20,000 that he put in. Okay, a lot less. Kurt put in $12,000 at 20%, earns $2,400 as an investment gain. Stan, you think you're ahead right now?

That's what it looks like to me, Jay.

All right, let's keep going. Kurt's now got to pay $7,000 because it was a loan that he borrowed, and his loan interest rate was 6.2% simple interest, which is compounded At the end of the year, not every single month. Very, very distinct clarification. And so on that $12,000 is only paying $7,000. But I want to make a specific understanding and clarification here. That $7,444— or sorry, $744 is going to the insurance company. Isn't that correct, Kurt?

Yeah, and I, and I'm a co-owner of the insurance company, so I really don't mind paying them interest because I'm helping build the profitability of a company that I co-own, and then they end up sharing some of that with me. So I kind of think that's pretty cool.

Okay, so hey, loans aren't bad when you're the banker. Who would have thunk?

Yeah.

All right, so minus his loan that he had to pay and the loan interest Kurt has a net profit of $1,656. Stan, you're still ahead, aren't you?

According to my math, yes, I am.

Alright, but wait, there's more. If we add Kurt's policy cash value growth over that 1 year— and in the early days of a policy, it could be as much as $8 a day in growth. I actually have a policy Which I went back and did the math, and in my second year I was getting upwards of $8 a day in growth. That's insane. I mean, it's not earth-shaking or earth-shattering, but that's money that's growing for me, and I didn't have to do anything but live another day and pay premium, obviously. So $8 a day times 365 days, that's $2,920. If we add that to Kurt's investment gain, Kurt has actually come out a positive $4,576. Chat, let me know, who do you think— I keep saying chat, I'm sorry, audience— who do you guys think is the winner of this specific outcome? The banker. Sharon, great point. Put that, put that answer in the Q&A window, and we're gonna get to that at the end. That's a great question. Hold me to that. I want to make sure I answer that question. Sharon asked, hold on, give me a second. I gotta go back to it. And then David, also put your question in the Q&A window. Either I or one of my teammates are going to answer that. When do you pay back the $12K loan? That is a wonderful question, Kurt. Actually, we'll just go ahead and answer it now because we have the time. Kurt, you've borrowed $12,000 to do this investment opportunity. You came out positive $575— sorry, $4,576. When do you pay back your loan?

whenever I want to.

Oh well, that simple, huh?

Yeah, I might take some of that gain. I might take, I might take the $576 that I swamped Stan with and I'll just use that to start paying back on my loan and then we'll still be even.

So what Stan is saying, guys, is— or sorry, what Kurt is saying here, guys, is Because it's a policy loan and because Kurt is the banker, Kurt gets to choose when and how he makes his loan payment. There is no set monthly payment. But I want to get— I'm going to put a big but in here. We want to make sure that we are prioritizing our loan's repayment. Because as we saw earlier, life can give us some great wins and life can give us some really crappy times. And in those times, we want to make sure we have the option and opportunity to act. That's very, very important. So by making sure that we are making loan repayments, we are giving ourselves the opportunity to Act when life throws us curveballs. All right, Sean, great point. You're not taking money out of the policy; you're only borrowing the value of your cash compared to what the insurance company will give you. So if you've got as twelve Kurt had twelve thousand dollars available, the insurance company said, "Hey, we'll give you our twelve thousand dollars." But you're gonna owe us 6.2% simple interest. That's why Kurt had to pay that $744. His equity. Correct, David, you're 100% correct in his system. All right. Let's keep moving. All right. So who has more options? We, we've talked about the direct investor, which is Stan. He owns his direct investment before taxes. He gets to sell if he needs to through holding, through whatever life does next or gives him next. And the control, it is dependent on the market timing. Whereas Kurt has his policy value, he can invest in the stock market, which he did, and the loan remains owed. So as I mentioned before, we want to make sure as we are utilizing our capital in our system, we want to make sure we continue to Be an honest banker and pay ourselves back and replenish our system so that when the next opportunity arises, we have the ability to take it. Taxes on the investment still apply. You're 100% correct there. And the future access really depends on what remaining loan capability is. So all of that to say, it's up to Kurt to make sure that he's got the capacity To act in the future, not the market.

Kurt.

All right, poll number two. After watching the game, which player do you think you would rather be? Remember, guys, not a trick question. And nobody's going to get hurt participating. Let me know, what do you think? Which player would you rather be?

Looks like I'm getting shut out, Jay.

Ah, Stan, I, I think that was inevitable. Once everybody realizes they can do both, not just have one, I think the option and the idea is clear. It just makes sense. All right, looks like we're at 100% person, the player building control. So Kurt, congratulations, everybody wants to be you. All right, give a couple more seconds for a poll. And we're gonna close it out at 14 of 14. Everybody wants to be the player that built control and Or sorry, builds capital. Now has control. Alright, so with that being said, you voted, you want to be the player that builds control and has capital and has assets so that he can act on opportunities. So I want to give you guys some time for some Q&A. I'm gonna ask some of my colleagues to come in and help answer some questions. I want you to understand that here at Ascendant Financial— thank you, Mike, for putting our numbers in— what we're doing here at Ascendant Financial is we want to help all of you understand how you can have more control in your life when it comes to your finances. And the best way to do that is to connect with one of our agents, either in Canada or the United States. The numbers are in the chat window. But if you've got any questions, If some of my guys can come on and bring up some questions that may have come up through the Q&A, and let's go and answer them. All right. Any questions, guys? Anything coming in?

Well, just in the Q&A, Jay, there's just a couple about when do you pay back the $12,000 loan? Maybe, you know, you and Kurt can just kind of clarify, you know, when do you pay back the loan?

No, that's a great point, Stan. I'm gonna stop sharing my screen here. That's a really great point. So the best way I can explain this is using Nelson's story. So if you guys haven't had— if you haven't heard of this book, you all have an opportunity. I'll get to Stan's question. I'm gonna use this book as reference. This book is the center of everything we do and teach here at Ascendant Financial. Becoming your own banker has changed my life, and I guarantee it's changed many of the lives of the team members I have here with me today. But to answer Stan's question, I want to bring you back to Nelson's story of a grocery store. Every one of us go, we shop. We buy groceries, we put food in our fridge. But if I owned the grocery store, I wouldn't take capital— or sorry, peas is what Nelson says— the cans of peas off the shelf of my grocery store and walk out the back door and not pay for it. So When you ask the question, when do I pay my loan back? And I tell you, you have the opportunity to choose when you pay your loan back. If you choose never to pay your loan back, you're stealing from yourself. Nelson says that's a polite definition of theft, because even though you own the store, the purpose of the store is to sell it for profit in the future. And if you steal from your store, you're not going to be as profitable as the guy next to you. Who owns the same grocery store? So when you borrow from your system and take those cans of peas off the shelf, you not only want to pay yourself back. Nelson says you purchase the cans of peas for 58 cents, and you sell them for 60 cents to the mass, the public masses. You being a captive customer of your grocery store should not purchase them at 60 cents. You should purchase them at 62 cents, which gives you 4 cents of profit, which allows you to go buy more cans of peas to bring more profit into the store. So what I mean by that in this specific terms of that $12,000, when you pay back your $12,000 loan, you should give yourself, let's just call it $13,000 instead of $12,000, and that extra $1,000 Should be paid as more premium, so that when you go back to your store again and access those cans of peas or your cash value, you have more available for the next opportunity. I really hope that answers your question. I really love using Nelson's stories because they're relatable. Everybody knows a grocery store and can relate to food in their stomach.

Hey, and Jay, and Nelson also added into that story that no one ever complains about having to add an extra aisle or end cap in their grocery store. It's just more inventory they can sell and make more profit with. So, so just a general idea.

Exactly. Dan, uh, Dan says more premium and/or as an add-on. More premium. So There's only 2 ways you can access capital in your policy or utilize your policy: premium and loans. So when it comes to premium, you have your required premium that you have to pay, and then you have your optional premium that you get to pay, but you don't have to. And that is determined when you meet with the agent that you're going to work with. They're going to help you determine how that is set up for you. It's set up differently for every single person here on this call. Everybody's life is different and everybody's premium is going to be different. But you get to set that yourself. And then when it comes to loans, think of it as 2 buckets. When you pay loans or take loans, it's completely separate from premium. Alright, it looks like we got some questions in the Q&A. All right, so we've answered that. I answered live. Sorry, I missed the beginning of the webinar. My question is, if I have $20,000 on a one-time basis, is it going to a new policy or is it going to EDO on an existing policy? That's a great question. It depends on how your policy is set up, and I would ask you to go and connect with your current advisor if you have one. If not, Stan or somebody, if you could put that in the chat. Mike, if you could put the numbers in the chat, reach out to one of our agents. We'll definitely get to help you. But I'm going to answer this question. If you have a one-time $20,000 and you're setting up a policy, but you've got some cash flow that you can make, let's just call it some decent base premium, we can inject that $20,000 in the United States. I'm not going to speak for Canada. I'm going to let one of the other guys speak for Canada. In the United States, you can inject that $20,000 in In the 1st year. Now, in Canada, if one of my Canadian counterparts comes in, how would you utilize that $20,000 in a policy in the 1st year if it's a one-time use and the person's got some cash value or value that they can pay premium? Dan, Stan, somebody want to come in?

I would put it in his EDO.

You put it in his EDO? Okay, perfect. So your EDO rider, for the Americans here, EDO is the same as paid-up additions in the United States. So that's just the optional premium. So you would design your policy— I'm hearing this correctly, Stan— you would design your policy in a way that can hold that $20,000 maybe in the 1st year or maybe over a few years, correct?

Yes, I would definitely, because I'm paying the base premium. So if I added the extra $20,000, and depending on how much extra capacity I had in the policy I would max fund that portion of it.

Okay, perfect. I hope that answers your question, Sharon. Thank you so much for participating. Michael, is this life insurance policy connected, or can it be connected to a living trust? It can be connected to a trust. That depends on the owner. The owner can be anybody. If your trust has got capital in it and you want your trust to pay premium, great. I personally— this is how I have mine set up. My personally, I have a living trust that is the beneficiary of my life insurance. So I'm the owner of my policy, my life insurance is paid by me, and then I will— if I pass away, on my passing, my death benefit will go to my trust, and my trust will dictate what happens to that death benefit. For my family. All right, answered that one. Next, Jeff says, why is it important to run money through your banking system before investing or making a major purchase? Oh, I love this question. Okay, so I want you guys to think about the banks that are out here that you operate with. Okay, you go to Chase or JP or Wells Fargo, or up in Canada, maybe One of the Canadian banks up there. Why do you think the banks get all of our money? We, we, we put our money in through direct deposit directly into them. They, we borrow loans from them. We pay them back. They're getting the flow of every single dollar we all earn.

Every one of them.

If you were the banker and you could receive every single dollar you earned before investing and capture it for your family for the rest of your life, do you think that would put you a leg ahead of all the rest? Let's see what the chat's saying. They make a pile on it. You're absolutely right, Walter. They make a pile on our money. But you would— so Odette says, and I hope I'm saying your name right, Odette. Absolutely. Odette says you would have 4 legs above the rest. Okay, the goal of being the banker and putting your money through before investing is now you can control the flow of capital. You get your growth in your policy, and just like Kurt had it in the investment, you get your growth In the market, you get your cake and eat it too. You can do both is what we're saying. You can invest and grow the capital that you earned initially instead of just taking the capital that you earned initially and investing it and not being able to do anything else. That was the whole point of this presentation today is really to show that point. You get options. It gives you options, and you don't just have to do one thing. You can do it many different things. Thank you so much, Jeff, for that answer. That was a wonderful, wonderful question.

Hey, Chad, I'll add, remember, whole life insurance is an and asset, not an or asset, right? Life insurance enables me to put money in and have that money grow on a daily basis in my cash value, and I can borrow against that value from the life insurance company to put it to work someplace else. Instead, what most everybody else is doing who isn't using life insurance is that they put money in their savings account or they put it in investment, right? Stan had to wrestle with that through the game, right? Stan had money, he put it in investment, but when something comes along, he has to choose, do I leave it in the investment or do I cash it out to pay for something or take advantage of something else or cover an emergency? So I think that's the biggest difference is you're always getting money growing for you. And you have the ability to use other people's money, the life insurance company's money, to do something you wanted to do in addition to.

Exactly. Thank you so much for that share, Curt. Okay, more questions. Alright, so Jeff— I'm sorry, Sean asked, is the policy strictly life, or can it include disability, travel insurance, and/or Or can it be combination? So, Sean, that is a great question. First part of your question, yes, it can do all of those things. But when we work with a company that is a mutual insurance company, we want our life insurance policy to do one thing and one thing well— it's grow. When our policies do multiple different things We lose the ability for some aspects of it to be better than others. So I would not recommend policies because there are some out there that do multiple things. If you want things like disability insurance or travel insurance, get them separately. You're going to get a better bang for your buck, I promise you, because you're going to get good disability coverage and a good life insurance policy instead of a good or mediocre life insurance policy. With probably poor disability coverage. Does that make sense? Okay, the next part of his question says, like you were on vacation in Mexico, had a medical expense of $40,000, and is that insurance payout effective, or can you borrow? Borrow or the premium? You can borrow when you have a properly structured life insurance policy. It doesn't matter where you are in the world, you can borrow your cash value As long as you got a bank account that it can be transferred to, to pay for a medical expense. And in the United States, I'm not sure in Canada, Stan, you might have to correct me here. In the United States, most life insurance policies, you can get what's called a waiver of premium. So if you do get sick or hurt for 6 months or more, they will waive your premium until you get better or you turn age 65. Is that the same up there in Canada, Stan?

Not to my knowledge, Jay, with the policies that I've been written up, but I can't say that with 100% certainty. I have not seen it myself.

Okay, perfect.

Yeah, just to answer that, you can get a waiver of premiums the same way if you want in Canada.

Okay, thank you, Dan, and thank you, Stan. All right, answer that question. All right, Jeff asked, would it be better to pay loans or fund the deposit accelerator? Hmm, that's a great question. Any one of my colleagues want to take this one? This is a good question. Anybody? Anybody?

Anybody?

Yeah, Kurt says yes. All right, go ahead, Kurt or Mike. Go ahead, Mike.

All right, I can figure out how to Get on here.

Yeah, man.

Can you hear the audio? Okay. Yeah, it is. It's a great question. I actually, personal experience with that is when I funded one of my policies, I did take a policy loan out to pay for my kitchen renovations. And then I would, then I got some additional funds and I'm like, all right, Should I start paying the policy loan back, or should I put it in towards additional paid-up additions? And actually, I talked with, with my good friend Kurt, and from a strictly mathematical standpoint, it makes more sense to contribute as much as you can to your paid-up additions or EDOs as quickly as you can. However, There's the emotional side of it as well. And in my case, I wanted to get that loan paid back to the insurance company first. That's what I felt comfortable with. I knew I was giving up a little bit of potential growth and then definite growth, but to me it felt better to say, all right, I've got that money back available in the form of cash value. And policy loans available. What I didn't want to do is to build up, borrow, and then put additional paid-up additions and then maybe borrow some more, and all of a sudden I've got more loans out there than I'm comfortable with. So mathematically, yes, it would have made sense for me to contribute as much as I could to my paid-up additions first and then start paying it back. Emotionally, I made the decision to pay the loan back and then contribute to my paid-up additions.

I hope that makes sense. Thank you so much for sharing that. I actually just had a client ask me this question the other day, and he wanted to know the same question, whether it makes sense. Or actually, he was asking, in what order do you make sure your premiums get funded? Base premium, number 1. Loan repayments, number 2. Paid-up additions, 3. And your interest, your loan interest, number 4. And the answer I gave him was simple. They're all important, base premium being the most important, because without base premium, your policy doesn't move forward. It stalls. Well, as long as your premium is funded, your base premium is funded, you get the opportunity to choose Whatever is most important to you, just like Mike just said. If you have that emotional connection to say, I want to make sure I want to be an honest banker and I want to make sure my loans are paid, then guess what?

You can.

You're not locked into anything, right? Or if you're like myself, I love paying as much paid-up additions as I can, or as much EDO as I can. You get that option. But I want you to understand something. This is a personal lesson that I learned over the last few years of owning my policies. When an opportunity arises and you haven't made your loan repayments, you don't have access to capital. It's that simple. So what I told my client is this: they're both important. You should be paying extra because that's going to put you ahead of the rest. But you should also be prioritizing some form of loan repayment, even if it's just $5 a month or $10 a month or $50 a month or $500 a month. Whatever your cash flow can afford, prioritize it, because you're going to thank yourself when an opportunity or life throws you a curveball comes your way. You're going to have cash value available to take care of it. That's the most important thing here. Thank you so much for that question. Matthew. Oh boy, Jeff got to it before I could get to it. Let me see. I missed it. Jeff, could you come in here and ask the question or talk to that question?

Yeah, it's about direct— can you put direct deposits in? Oops, sorry.

Yeah, so just jumping in there is— and hi, Matt— is that, yeah, for that There typically, I think he's probably referring to people wonder, and I'm speculating here, is that where does the money we receive, our income, go first? Does it go directly into a policy? Typically what happens is that it still goes into your traditional bank account, and then you decide how you want to allocate it amongst your policy or system of policies. And that typically is a bill payment that you would typically do from your traditional bank into your system of policies. So yeah, you— that it's where we store our capital. I mean, it still comes in from multiple sources in traditional banks, and then we decide how we want to store it.

Perfect. Thank you so much for that, Jeff. All right. I saw another question earlier. Walter asked— and Walter, if you could clarify for me in the chat, make sure I'm answering the right question. He said, what happens to the $20,000? So I'm assuming I'm assuming you're asking about the $20,000 from the original PowerPoint when we were talking. Does it grow? What happens to the $20,000? Does it grow beyond the $20,000? And please let me know, are you talking about in the policy? Does it grow beyond the $20,000? Am I understanding that correctly? Yes or no? Alright, he hasn't said anything, but I'm assuming what he's talking about is it in the policy. So if let's say you had your availability for cash value of the $20,000, you put that $20,000 in your paid-up additions. What you then do, what happens with that $20,000 is that $20,000 goes to the insurance company, and then the insurance company gives you death benefit for it. And you get cash value availability. And what that cash value is doing is it's trying to grow to equal your death benefit. So using really round numbers, if you had a death benefit of $1,000,000, your cash value to start— let's just say it is $20,000— is growing to age 121 in America and age 100 in Canada. Your cash value is growing to equal that $1,000,000 death benefit. So every day you live, your cash value is growing every single day because it's trying to equal $1,000,000 by age 121 in the States and 100 in Canada. So when you pay extra premium, what you're doing is you're forcing your death benefit to grow, which then in turn forces your cash value to grow faster to meet that new number. Is that good or good? Let me know in the chat.

It's pretty good.

That's pretty good. Odette said it's the goodest. I love, I love that, Odette. You're right. It is the goodest. Alright. So that's really all I have for you guys today. I really appreciate everybody for coming, participating in asking questions. It's always fun when you guys ask questions and I'm able to help participate. Thank you so much for your time today. I'm going to give you your next 20 minutes back to you. If you guys want to connect with our agents in the States or Canada, Mike, if you could put that back in the chat one more time. Thank you so much for being here today with me, letting me have some fun and participate with you guys today, and I look forward to connecting with you guys on the next webinar. Have a great afternoon, everybody.