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167. Create Cash At A Discount · Wealth On Main Street

• 0:00
  Speaker A: You are listening to the wealth without Bay street podcast, a canadian guide to building dependable wealth. Join your hosts, 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.
• 0:21
  Speaker B: Get our simple seven step guide to becoming your own anchor. It's easy. Head over to Sevensteps CA and learn exactly the learning process required for you to implement this amazing strategy into your financial life. That's Sevensteps ca.
• 0:38
  Speaker C: Okay.
• 0:39
  Speaker D: The fact of the matter is that participating dividend paying whole life insurance creates a lot of cash at a discount exactly when the policy owner and the.
• 0:50
  Speaker C: Beneficiaries need it the most.
• 0:53
  Speaker D: And so let's just expand and talk a little bit about that, because we would often say day in and day out when we talk to people. Just using a recent example that we.
• 1:04
  Speaker C: Talked about before starting the episode where.
• 1:07
  Speaker D: We said to the prospective policy owner.
• 1:10
  Speaker C: Give me a nickel and I'll give you a dollar.
• 1:14
  Speaker D: And the prospective policy owner says, can you run that by me again? Yeah, I'm going to help you create.
• 1:21
  Speaker C: Cash at a discount. So you give me a nickel and.
• 1:25
  Speaker D: I'll give you a dollar. So let me show you what that means. Let's just share my screen here real quick and for people who are listening on their podcast platform.
• 1:33
  Speaker C: So this particular prospective policy owner says.
• 1:35
  Speaker D: Listen, I'm contemplating putting $100,000 of premium into this policy. And we helped the policy owner see things from a completely different vantage point. When you take that 100,000 of cash.
• 1:48
  Speaker C: Premium and you divide it into the death benefit of 1.887 million, you're going to get about 5.29%. Right.
• 1:58
  Speaker D: So if you give me a nickel, I am going to give you a promise to pay one dollars.
• 2:05
  Speaker C: That's the calculation. It's ridiculously simple.
• 2:08
  Speaker D: So the question that we posed to the prospective policy owner was, how many dollars do you want to buy at.
• 2:14
  Speaker C: That degree of discount? Prospective policy owner says, how many are you selling? Right.
• 2:24
  Speaker D: And when you look at it from.
• 2:25
  Speaker C: That perspective, we say, well, look, the moment that you do that, the moment.
• 2:31
  Speaker D: That you put that $100,000 premium into the policy, we're going to put 1.887.
• 2:36
  Speaker C: Million into escrow with your name on it. And if you're paying that 100,000 a premium, that premium can never go up.
• 2:47
  Speaker D: It can go down, but it can never go up.
• 2:50
  Speaker C: But yet the death benefit is going to continue going up, and it's going to go up quite a bit.
• 2:59
  Speaker D: So if I go back here to.
• 3:00
  Speaker C: That table of values, second policy anniversary.
• 3:05
  Speaker D: Another 100,000 goes in. The cash that's been piled up is 179,000. The total death benefit has grown to 2.1 million. But look at something remarkable.
• 3:18
  Speaker C: You go to year three, you've got.
• 3:20
  Speaker D: Another 100,000 that's gone in, you've got 2.327 million of total death benefit.
• 3:26
  Speaker C: But.
• 3:29
  Speaker D: What is the increase in the annual increase in total cash value from.
• 3:33
  Speaker C: Year two to year three, rich?
• 3:35
  Speaker D: Because we had 179,195 in year two and 287,726 in year three.
• 3:45
  Speaker E: It's well in excess of what the deposit of the premium allotment was of $100,000. It's gone up by 110, 1215, something like that, 108. So it's a really good turnaround on moving money from one pocket, let's say your regular corporate bank account, to another pocket. The insurance policy account.
• 4:08
  Speaker C: Yeah.
• 4:08
  Speaker D: Even in this case, being that it's.
• 4:10
  Speaker C: Prospectively a personally owned policy, you're creating cash at a discount, not only while the policy owner is alive, but if you can find.
• 4:24
  Speaker D: And again, I go back to this table of values. If you can find anywhere in this.
• 4:28
  Speaker C: Table of values where the policy owner.
• 4:32
  Speaker D: Is going to pay in, what the insurance company is going to pay out.
• 4:37
  Speaker E: Doesn'T exist in the first seven years that we're looking at here, that's for sure. And it won't into the entire life of the policy, I can assure you that.
• 4:46
  Speaker D: Yeah, you just won't find it.
• 4:48
  Speaker C: If we get to the fifth year.
• 4:52
  Speaker D: We'Ve neutralized, because we have 505,000 of total cash value that's piled up. We've put 500,000 of premium payments into the policy. The death benefit started at 1.8 million. It's grown to 2.7. The cash value is contractually guaranteed to grow to match the death benefit by age 100.
• 5:09
  Speaker C: If we go to the 6th year.
• 5:13
  Speaker D: How much does the cash value grow.
• 5:15
  Speaker C: From year five to year six? Is it more than the premium paid?
• 5:19
  Speaker E: It's more. It's 120,000.
• 5:20
  Speaker D: And so are we continuing to create.
• 5:23
  Speaker C: Cash at a discount every single?
• 5:26
  Speaker D: Because, yeah, we're only putting in 100,000.
• 5:29
  Speaker C: In premium payment and the death benefit continues growing.
• 5:35
  Speaker D: And so when you look at.
• 5:37
  Speaker C: And again, you think, logically, if I'm.
• 5:43
  Speaker D: Paying 100,000 in premium and the annual increase in cash value is 120 plus.
• 5:48
  Speaker C: Thousand, logically, I would ask myself, when.
• 5:52
  Speaker D: Would I ever want to stop putting 100,000 of premium payment into a policy that is producing that result? That is creating cash at a discount. Logically, I wouldn't want to stop doing that. When people look at it from the perspective of how soon can I stop paying the premium?
• 6:10
  Speaker C: Well, they don't understand the problem, because.
• 6:14
  Speaker D: The problem isn't the premium. The premium is the solution to the problem. And so the question that we would be asking ourselves, once we fully understand the attributes and just how incredible this.
• 6:24
  Speaker C: Tool is, the question that we're asking.
• 6:26
  Speaker D: Ourselves is, how long can I pay the premium for? Because the more capital that I put.
• 6:31
  Speaker C: Into the policy, the more capital I'm going to get out.
• 6:36
  Speaker E: What's really important about that question? Jay, there's more to that question than just the question itself. When you ask yourself a question like that, your brain automatically starts to. You're giving it a new problem, essentially to solve. And the new problem is you're thinking, how long can I pay the premium for? Your brain starts to think about, well, how long will I be alive? How long can I generate revenue for? What are the different streams of revenue that I have that can allow me to continue to pay that premium? What new things will come up for me? Because I now have this cash generating discount, cash generating machine working in my benefit, in my favor, that I can access capital when needed to go and create other streams of revenue that will allow me the continuity of funding the premium for that continual result. So your brain gets triggered by the questions that we ask, and that is a perfect question. The question of how soon can I stop paying the premium is a take yourself out of the game question. It's I'm going to go to sleep and retire and die early and be put 6ft under because I've stopped inspiring my brain to think of new things to do. Whereas the other question is, how long can I keep paying it for? It triggers your brain into goal oriented objection. Seeking to accomplish an objective type of an environment, mentally, totally.
• 8:00
  Speaker C: And.
• 8:04
  Speaker D: When you look at the anatomy.
• 8:06
  Speaker C: Of the contract, the policy itself is.
• 8:10
  Speaker D: A unilateral, binding contract. And when we assist our clients with.
• 8:18
  Speaker C: The placement of these contracts, the contract is guaranteeing tax free delivery of money.
• 8:30
  Speaker D: Exactly when it's needed the most.
• 8:34
  Speaker C: And so you're getting cash creation at a discount.
• 8:39
  Speaker D: How much cash do you want to.
• 8:40
  Speaker C: Create at a discount logic?
• 8:44
  Speaker E: Much as possible.
• 8:46
  Speaker C: As much as I can.
• 8:48
  Speaker D: You're getting contractually guaranteed delivery of tax.
• 8:51
  Speaker C: Free money at a discount. And so all that we're doing each.
• 8:56
  Speaker D: And every year is we're repeating the.
• 8:58
  Speaker C: Same offer to the prospective policy owner. How much cash do you want to buy at a discount. He's just repeating the same offer year after year after year.
• 9:10
  Speaker D: And the business owners that we work with and the people, the individuals that.
• 9:14
  Speaker C: We work with, they grasp this very quickly because of how it's explained.
• 9:21
  Speaker D: We should stay away from anything that confuses people. A participating, dividend paying whole life insurance.
• 9:28
  Speaker C: Contract guarantees the tax free delivery of money. And you can create cash at a discount.
• 9:37
  Speaker D: Decide how much cash do you want.
• 9:38
  Speaker C: To create at a discount? We can help you do that. You pay no tax on the buildup.
• 9:44
  Speaker D: You've got ready access, capital on demand on your terms. You've got no bureaucrat or government official leaning over your shoulder. So you're in a position of total and absolute control. And someday you're going to pick up the option, right?
• 10:03
  Speaker C: Someday you're going to die, and you.
• 10:06
  Speaker D: Will never pay in what the insurance.
• 10:08
  Speaker C: Company is going to pay out, because.
• 10:10
  Speaker D: We just keep repeating the offer each.
• 10:11
  Speaker C: And every year, and you keep paying the premium, and someday death will come, and the delivery of tax free dollars is contractually guaranteed.
• 10:23
  Speaker F: Become your own banker and take back control over your financial life. Hey, is this even possible? You may be asking, can I even do this? Well, you better believe it. In fact, it's easy to get going. So easy that we put together a free report. Seven simple steps to becoming your own banker. Download it right now. Go to Sevensteps ca. That's seven steps. Ca. Now let's get back to the episode.
• 10:52
  Speaker E: It's interesting that you say in this environment, because of what we're talking about, that it's true, you will never be able to pay in what the insurance company will pay out. However, if you went and bought term insurance and held it for a lifespan, it is very feasible that you would actually pay more into it than what it would pay out. That can happen in design of some term insurance policies on their own, big time. Because actuarily speaking. And the other thing that's interesting is that I don't know if you know this or not, Jay. Some people actually live past age 85. Have you heard about that? There's this whole group of people who actually live all the way to age 100 and even beyond called centurions. And there's people who are expecting to outlive what the world's global expectation of lifespan is this day and age. And so what's funny is that most term insurance it's sold, it actually ends at 85. So even if you're still alive and you paid all the premium and all the money into it, someone else got all your money, an insurance company. I'm glad that I co own one of those, by the way. And there's no payout because you're still living. And then the policy is just done, it's terminated. It won't go past age 85. So in other words, you're gambling basically with the house. And you're betting every single year with an increasing amount of money that you're putting down from in ten year or 20 year increments. You're putting more down and more down on the roulette table saying, this is the year.
• 12:19
  Speaker C: This is the year I'm going to go.
• 12:20
  Speaker E: I'm going to get you guys finally, this is the year. And then year 85, age 85, comes around and you're still around, and the house is just like, sorry. Thanks for all your help and putting cash flow money into our great business here each and every year. So, not to associate the insurance company with the casino, but just recognizing the difference in the thought process between two fundamentally very different types of tools.
• 12:45
  Speaker D: Ask yourself a question.
• 12:47
  Speaker C: What type of foundation do you want for your family and for yourself?
• 12:54
  Speaker D: And people are putting their money into all different types of financial products.
• 13:00
  Speaker C: And those financial products, they have some degree of variability, they have some degree of volatility.
• 13:11
  Speaker D: But we have a bunch of great packages which are just blocks of dividend paying, participating whole life insurance.
• 13:18
  Speaker C: You can insure one year of profits.
• 13:20
  Speaker D: You can create a post secondary education plan. You can create a I just want to have a boatload of money when I retire plan.
• 13:29
  Speaker C: You can create the package. And it's a block. And that block of dividend paying, participating whole life is absolutely the foundation that you want to build on because you.
• 13:42
  Speaker D: Know that the money is going to be there exactly when it's needed the most.
• 13:46
  Speaker C: And it's not correlated to any of.
• 13:48
  Speaker D: The ups and downs of a stock market or any of the expansion or.
• 13:51
  Speaker C: Receding of an economy or any political.
• 13:54
  Speaker D: Turmoil or any changes in tax calculation.
• 13:59
  Speaker C: Or income tax is political turmoil.
• 14:03
  Speaker E: Jay, that never happens.
• 14:04
  Speaker C: Like, just think about it.
• 14:06
  Speaker D: And so there's got to be something there.
• 14:09
  Speaker C: There's got to be something there. A real foundation, something that you can build on.
• 14:16
  Speaker D: And skyscrapers stand up really well on really strong foundations.
• 14:20
  Speaker C: And so when you look at this.
• 14:23
  Speaker D: From the vantage point that we've outlined.
• 14:25
  Speaker C: It, you're creating cash at a discount.
• 14:29
  Speaker D: Once the policy is in place. You've now got contractually guaranteed delivery of tax free money exactly when it's needed.
• 14:36
  Speaker C: The most, and you'll never pay in.
• 14:38
  Speaker D: What the insurance company is going to.
• 14:40
  Speaker C: Pay out, provided that, and we understand.
• 14:42
  Speaker D: That not every canadian is going to work directly with Ascendant financial, we get that.
• 14:49
  Speaker C: But when you're contemplating doing this, probably.
• 14:53
  Speaker D: Pretty important to work with, and it would represent an advantage to you to.
• 14:58
  Speaker C: Work with a team that specializes in.
• 15:01
  Speaker D: The sale and placement of dividend paying participating whole life. We're not generalists at Ascendant.
• 15:07
  Speaker C: We specialize going into our 16th year of specialization.
• 15:13
  Speaker D: We're pretty damn good at what we do. And so if you want to create.
• 15:18
  Speaker C: Cash at a discount, then you'll know.
• 15:21
  Speaker D: Exactly what to do, which is to get in touch with us and we'll.
• 15:24
  Speaker C: Help you create cash at a discount.
• 15:27
  Speaker E: If you're contemplating, like Jason said, well, the best way to have a map, a guide for your contemplation, is to head on over to Sevensteps, Ca. We literally have seven steps that we've mapped out for you to help enhance your contemplation, walk you through exactly the learning journey to determine if this is the right fit for you or not. And if it's not, hey, that's cool. At least you did your research. But you can't say that you didn't know about it, because if you listen to this episode, you do now.
• 15:56
  Speaker D: Well, here, ask yourself the question logically.
• 15:59
  Speaker C: Anything that you go out to buy, if you have the opportunity to buy it at a discount.
• 16:09
  Speaker D: Would your logic.
• 16:10
  Speaker C: Ever support not doing that?
• 16:12
  Speaker D: If you could go across the street.
• 16:13
  Speaker C: And buy it at full price, your.
• 16:17
  Speaker D: Logic is going to kick in.
• 16:18
  Speaker C: It'd say you want to create cash.
• 16:21
  Speaker D: Yeah, everybody wants to create cash because.
• 16:23
  Speaker C: You'Re going to need the use of it.
• 16:24
  Speaker D: Well, do you want to create it at a discount?
• 16:27
  Speaker C: Hope so. Get in touch with us. Let us help you do that. And as Richard mentioned, as you go.
• 16:36
  Speaker D: Through that process.
• 16:38
  Speaker C: Our experience has been.
• 16:40
  Speaker D: With our clients day in and day out.
• 16:42
  Speaker C: They want to create more cash at a discount, not less.
• 16:47
  Speaker D: And so your program will grow over.
• 16:49
  Speaker C: Time and you can enhance your life financially in a very dramatic way.
• 16:54
  Speaker D: And you can create a very peaceful, stress free way of going about things.
• 16:58
  Speaker C: Financially, knowing that you're going to be.
• 17:01
  Speaker D: Just fine while you're alive. And when that day comes, when you're.
• 17:04
  Speaker C: No longer alive, there's a contractually guaranteed.
• 17:08
  Speaker D: Delivery of tax free money exactly when.
• 17:10
  Speaker C: It'S needed the most.
• 17:12
  Speaker D: And that's our definition of the best investment, one that pays the most, precisely when it's needed the most.
• 17:18
  Speaker C: And here's the other thing I want to emphasize.
• 17:22
  Speaker D: Ask yourself.
• 17:22
  Speaker C: Take a look at humor me as.
• 17:26
  Speaker D: A viewer or as a listener, go through this exercise.
• 17:30
  Speaker C: Write down all of the assets that you own today.
• 17:37
  Speaker D: And when I say own, I don't mean literally, right? Because if you're making a payment on your home, you've got equity, you don't own the home.
• 17:44
  Speaker C: But I want you to write down.
• 17:46
  Speaker D: If you were to create a personal.
• 17:47
  Speaker C: Balance sheet, then write down everything that would land in the asset column and.
• 17:53
  Speaker D: Ask yourself this question.
• 17:56
  Speaker C: Put a check mark.
• 17:59
  Speaker D: So which one of these assets, if.
• 18:02
  Speaker C: Any, could I turn into cash right away without triggering a penny of tax.
• 18:09
  Speaker D: And without reducing a penny of the asset's value?
• 18:14
  Speaker C: Put a checkmark beside any of the assets on your personal balance sheet, where.
• 18:18
  Speaker D: You can turn them into cash right away, without triggering a taxable event of.
• 18:22
  Speaker C: Any sort, and without reducing a penny of the asset's value.
• 18:28
  Speaker D: That's going to be a very eye opening, revealing exercise.
• 18:31
  Speaker C: Because when you put this contract, this.
• 18:36
  Speaker D: Participating, dividend paying whole life insurance contract.
• 18:39
  Speaker C: As an asset on your balance sheet.
• 18:42
  Speaker D: You can absolutely put a check mark.
• 18:44
  Speaker C: Beside that asset to meet that criteria.
• 18:49
  Speaker D: Because most people that we meet with.
• 18:51
  Speaker C: Their estate, if you look@your.net worth, their estate is extremely illiquid, meaning you could not do that.
• 19:02
  Speaker D: You could turn an asset into cash.
• 19:05
  Speaker C: But in many cases, you're going to.
• 19:08
  Speaker D: Trigger tax and you have to reduce the asset's value.
• 19:13
  Speaker C: Doesn't happen in this instant. So that begs the introduction of logic.
• 19:19
  Speaker D: Understanding that how much of your capital do you not want residing there?
• 19:25
  Speaker C: But people say, yeah, it's not an.
• 19:26
  Speaker D: All or nothing thing.
• 19:27
  Speaker C: Of course not. Because from that place of ownership of.
• 19:33
  Speaker D: A dividend paying, participating whole life policy.
• 19:35
  Speaker C: Or ideally a system of policies from.
• 19:38
  Speaker D: That place, you get to control how.
• 19:40
  Speaker C: You finance all the other assets that you want to accumulate over the course of your lifetime.
• 19:46
  Speaker D: So let's create today what would otherwise.
• 19:49
  Speaker C: Take you a lifetime to accumulate. Hey, I think the assets I have are going to build up to 10,000,040 years from now.
• 19:57
  Speaker D: Well, let's create a policy that contractually guarantees a minimum of the delivery of 10 million today.
• 20:04
  Speaker C: So we can build for you right.
• 20:06
  Speaker D: Now what it would have otherwise taken.
• 20:07
  Speaker C: You a lifetime to accumulate. We can do that. So let's help you do that. Isn't that good?
• 20:15
  Speaker E: Pretty simple. What else do you say there? I'm looking down at my table here, and I've got two copies of cash follows the leader, and you're saying, let's get the death benefit we need at the end. And by the virtue of doing that, the cash is just going to follow the leader, which is the death benefit. And if you don't understand how that works, you can get our copy of our book. Cash follows the death benefit. It's very well explained there. And the leader, it's just really simple. It doesn't need to be overcomplicated.
• 20:45
  Speaker C: Richard just messaged me grow.
• 20:47
  Speaker D: He just messaged me in the chat window saying he wants to apply for.
• 20:50
  Speaker C: Another policy and he can do that.
• 20:53
  Speaker D: On his own, but that's how inspired he just got. But here's the deal.
• 20:58
  Speaker C: So creating cash at a discount, that's going to be an upcoming book in the wealth without Bay street book series.
• 21:09
  Speaker D: I'm literally in this episode just sharing that. Richard had no idea. He can say from a place of honesty and integrity that he had no clue that I was going to say that. That's how these book ideas come up.
• 21:19
  Speaker E: Kind of like the first time that he said that we were going to write a book, actually.
• 21:24
  Speaker C: Create cash at.
• 21:25
  Speaker D: A discount is going to be another book in the wealth of Hope Bay street series.
• 21:29
  Speaker C: And we're going to expand on that.
• 21:32
  Speaker D: Philosophy and the approach on how to.
• 21:35
  Speaker C: Go about doing it. But in the interim, start doing it.
• 21:38
  Speaker D: Get in touch with us.
• 21:39
  Speaker C: Let us help you create cash at a discount.
• 21:42
  Speaker D: Everybody watching on the youtubes, thanks so much for tuning in and you made the right decision tuning in. So keep watching.
• 21:49
  Speaker C: Another video just popped up.
• 21:51
  Speaker D: Continue your journey of learning and for everybody on your favorite podcast platform. Thanks for tuning in. Make the rest of your week outstanding and we look forward to hearing from you and connecting with you real soon to help you create cash at a discount.
• 22:05
  Speaker C: Thanks for rich, always a pleasure.
• 22:07
  Speaker B: Thanks for listening to the wealth without Base 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 mindset that maximize your wealth.