0:02

Hey, Welcome back

0:02

to the Average Joe Finances podcast.

0:04

I'm your host, Mike Cavaggioni, and

0:04

today's guest is Richard Canfield.

0:09

So Richard, super excited to have you on. We're gonna talk about something really

0:11

neat becoming your own banker, right?

0:15

Because everybody should be

0:15

their own banker in their life.

0:17

We just talked about that a little

0:17

bit offline, and I'm really excited to

0:21

to hear your side and get into this. So welcome to the show.

0:25

I'm happy to be here, Mike. I'm excited you have a great program.

0:28

I think you provide a ton of value

0:28

to your listeners and hopefully

0:30

I get to be a part of the list of

0:30

people that gets to do the same.

0:34

Awesome. Thank you so much for that. I really genuinely appreciate that.

0:37

I think the show's gotten better as my

0:37

beard's gotten longer, so just gotta keep

0:41

that just gotta keep that going, ofcourse.

0:43

Once you get

0:43

to episode 1000, it's gonna be

0:45

all the way down to your knees. You gonna be, everyone's gonna be like

0:46

when's it gonna, you'll have to, you have

0:49

to find an end point before you have to

0:49

reset and grow the second beard, yeah.

0:52

I'm actually getting ready to trim it up a little bit just to make sure, I can keep it growing clean.

0:56

But yeah. Anyway Richard, I wanna start this

0:56

off the same way I start every podcast

1:00

episode, and we wanna know more about you.

1:03

So if you could share a little bit

1:03

about yourself for our audience here.

1:06

Tell us your story. Who is Richard Canfield?

1:10

I'll do my best to

1:10

keep it tight and I'll go like this.

1:13

I'm from a very small town in

1:13

an area called Alberta Canada.

1:16

A lot of people would know about the Edmonton Oilers, so I grew up in that general region.

1:20

I'm a Conor McDavid fan. Anyone who's a NHL hockey fan here.

1:23

And, when I grew up in this small

1:23

community, we lived on an acreage,

1:27

about 10 acres surrounded by farms. So I grew up working like a farm hand,

1:28

doing all the farm related activity.

1:32

I understood working hard at an early age. And we actually had a

1:34

service business as a family.

1:37

I was the heir to the portable

1:37

toilet kingdom of cameras,

1:40

Alberta, is what I used to say. A prince to the throne, as it were.

1:44

I like that throne.

1:44

Was the business that we were in. My dad had a septic truck and so he

1:45

did that for, surrounding communities.

1:49

Then that, that turned into my parents

1:49

had a conversation one night, when some

1:54

of the work was changing, the economy

1:54

was shifting, and, my mom was gonna

1:57

lose her position on this one job. And she says we're in the shit anyway.

2:00

Why don't we just get deeper into that business? That's what happened.

2:03

So that was how the transition happened

2:03

and we ended up getting into these,

2:06

this portable toilet industry and that

2:06

just sped up and steamrolled from there.

2:10

And so I spent the bulk of my youth. Working in the family business

2:12

and so I even got to drive,

2:15

we call it the honey wagon. I drove that to school.

2:17

When I was a teenager and stuff. And and I would leave school

2:18

and I would go right to work. So I learned about a lot about

2:20

working hard, but we didn't realize

2:24

and didn't understand at that point. Time in my life was about

2:25

things like coaching. I. And how you could go get resources

2:27

to, to create efficiencies and systems

2:32

and, the whole like Kiyosaki Cashflow

2:32

Quadrant scenario, we were definitely

2:37

the S quadrant individual family.

2:39

We weren't in the B quadrant and we were

2:39

really just employed by our own business,

2:44

and we were just running and running. And so I spent that.

2:47

Whole part of my youth thinking about

2:47

that was the way that businesses

2:49

operated, and it didn't really

2:49

seem like it was a lot of fun.

2:52

And shooting forward to, to,

2:52

leaving that environment.

2:55

I went and got my electrical ticket. So I'm a recovering electrician by trade.

2:58

My mentor Nelson Nash will talk about him in a minute. I was doing a speaking event at one of

3:01

our conferences and he introduced me.

3:04

He says Richard's been recovering as

3:04

an electrician for almost 14 years.

3:07

He's finally able to turn a light switch on. Thankfully I do turn the light switch on

3:09

now, and I'm still recovering, but it was

3:12

a great trade and I learned a lot there. I met a lot of people while I was in

3:13

that environment getting started there.

3:17

I was also still actively being involved

3:17

in the real estate investment area.

3:21

My parents and I had bought

3:21

our first property when I was

3:24

about 12 years old, and it was a

3:24

sweeped house, up, down duplex.

3:28

And I learned a lot about how much

3:28

I didn't like managing tenants.

3:31

How much tenants can destroy a property

3:31

if you don't pick 'em very well.

3:35

I learned that dogs named Goliath. Are actually dogs named Goliath and

3:37

they can destroy a yard that you

3:42

have to go and fix as a teenager. So I learned a lot of these things.

3:45

I shingled my first roofs there. I moved more appliances

3:47

and I care to count. I learned how to paint and

3:49

fix, do drywall repairs.

3:52

I did all that stuff in my early

3:52

teens because of this one property.

3:57

And when we finally sold that

3:57

property, I had all the experience.

4:01

But I didn't really have a lot of the money, and now I did get some out of the deal.

4:04

We sold right before the market started

4:04

to take off in our area, and I said, I'm

4:08

never doing that again because I just

4:08

saw this like negative baggage around it.

4:12

A quick

4:12

question, was it also in your name?

4:14

The duplex?

4:15

Yeah, so I

4:15

was one, I was on title as a

4:18

beneficial interest to the property.

4:20

Nice. Okay.

4:20

So effectively, yes, that's how my parents had set everything up.

4:23

And when we sold the property, I

4:23

said, I'm never doing this again,

4:26

because I had all this kind of baggage

4:26

that had built up, working hard.

4:29

And then what I realized, we went

4:29

to a seminar really a couple months

4:33

later, and in that we learned about

4:33

this concept of what we call virtual

4:37

apartment building, where you could get. A, a property that was a condo

4:38

conversion, it's all being taken

4:42

care of, it's being renovated. It's, it's gonna go from like old to new.

4:45

You could buy the unit and, you

4:45

could basically stack units like

4:49

this every once or two, twice a

4:49

year or every couple of years.

4:52

You buy another one might be in a

4:52

different market environment, but

4:55

because you're spreading out bunch

4:55

of different markets, you have a

4:57

little bit of diversification there

4:57

from market cycles, et cetera.

5:01

And then you would just continue doing that and they wouldn't really cashflow a great deal.

5:04

But once you. Pay them off. You have this long-term cash flow.

5:08

So it was a very long-term thinking model,

5:08

but the key for me, that really got me

5:11

as a young man who had just turned 18. I never have to meet a tenant.

5:15

I never have to paint any walls. I never have to move an appliance.

5:18

There are no Goliath dogs. There are no, none of these things

5:20

that the experiences that were

5:22

negative for me would be there. And so I immediately, shortly thereafter,

5:24

selling that first property, we

5:27

got into the next one and then the

5:27

next one, and then the next one.

5:29

And so we started building up Doug there

5:29

while I was starting my electrical career.

5:33

And then when I sold the next property

5:33

that that first one that we bought,

5:37

that was a virtual apartment building

5:37

style, it was about three years later.

5:40

I remember getting my first $15,000 check

5:40

and I thought, okay, there is something

5:45

after all to this real estate deal, and

5:45

this is going back to about 2000 and.

5:50

Maybe 2002, 2003, something like that.

5:52

It's quite a while ago. And I realized I wanted

5:53

to double down on that. So I really started getting into

5:55

the real estate investment industry.

5:59

Taking courses, meeting a lot

5:59

of people, a lot of networking.

6:02

Got involved in some real estate

6:02

investment network groups and

6:05

I had a lot of fun doing that. And of course that led me down

6:06

a personal development track.

6:09

And through that mechanism of going and

6:09

doing all that work and spending all

6:14

that money on those courses and meeting

6:14

all the gurus, I came to realize that.

6:18

What I'm meant to do in the world is

6:18

really to be able to take information

6:22

that I've aggregated and be able

6:22

to share it with other people.

6:25

So similar to the format of what

6:25

your podcast does, not unlike your

6:28

own journey, Mike, I think to some

6:28

degree you just almost feel called

6:31

and pulled to do that type of work. And so I found that was the case and

6:33

know that'll lead us up to my part

6:36

of the journey where we get to the

6:36

process of becoming your own banker.

6:39

But what was interesting is when I

6:39

got this book, so the book called

6:43

Becoming Your Own Banker, written

6:43

by r Nelson Nash, I received

6:47

that book in the summer of 2009.

6:50

And it was recommended by a good

6:50

friend of mine who I, who's a business

6:52

partner of mine today, and we actually

6:52

have our own podcast called Wealth

6:55

Health Bay Street together, him and I. And when I received that book and I

6:57

finally read it, what I realized is,

7:01

this is the thing I've been looking

7:01

for my whole life for at the time,

7:06

being Canada, of course we do this,

7:06

all over North America presently.

7:09

But being in Canada at the time, the

7:09

exchange rate was pretty abysmal.

7:12

It cost me about 50, $55 to

7:12

get a $20 book to my door.

7:16

Okay? And after reading that book, what

7:17

I realized is in 92 pages, I got a

7:21

better financial education than the

7:21

$40,000 I had spent in the 10 years

7:27

prior going to all the courses and

7:27

doing all the personal development.

7:31

And I really got to thinking, I

7:31

said, if that's true for me, how many

7:36

other people would that be true for? Why am I putting all the money

7:39

and giving all the gurus my money?

7:42

If for this for what's in this book,

7:42

I could have just learned things.

7:46

I could have just shortcutted a

7:46

bunch of things and I could have got

7:48

myself on the right track right away. So I felt a little bit gypped, in

7:50

my experience, and I didn't wanna

7:53

discount anything I learned, of course. And learning is learning.

7:55

There's nothing wrong with that, but

7:55

I, it was just a pure realization to

7:59

me that things could have just been so

7:59

much better had I got the book first.

8:04

Before all that other stuff. And so I immediately began to go into the

8:05

discovery and the implementation phase.

8:10

Cuz at that point in time in

8:10

Canada, we didn't really know how

8:14

we were gonna implement the process. So we had to go into

8:15

that discovery and learn. And the end result is, and you asked

8:17

me before we hit the record button,

8:21

you know how the process of becoming

8:21

our own banker, the infinite banking

8:23

concept operates in north of the

8:23

border versus south of the border.

8:26

They're very much the same. There's not a big difference there. The differences are quite minor.

8:30

And they're technical of nature. There's usually around our tax system,

8:32

there's not a lot of difference as far

8:35

as how you implement the concept and the

8:35

way the concept itself works in general.

8:39

There really is no, no functional difference. And so once we really understood that,

8:41

we just went to work and got started.

8:45

And so now I'm entering my 14th year

8:45

of teaching this concept to families,

8:50

business owners, real estate investors. And I'm having a heck of

8:52

a lot of fun doing it.

8:54

And we just launched our third book

8:54

about the topic and we got a best

8:59

Amazon bestseller status here last

8:59

week when we did our book launch.

9:02

So we're having a lot of fun with what we're doing. And all we're really doing.

9:05

Congrats.

9:05

Is we're taking Oh, thank you very much. I appreciate that.

9:07

We're taking the message that was

9:07

instilled on me from Nelson Nash, who

9:12

was the guy who developed this concept. He became my friend and my mentor, and he

9:14

completely and totally changed my life.

9:18

And there's not a single aspect

9:18

of my life, Mike, that hasn't been

9:21

positively impacted in some way,

9:21

in some measure by getting to meet,

9:26

know, and understand Nelson Nash and

9:26

the concept that he created right

9:31

down to my personal relationships. Everything has been positively

9:32

impacted simply by getting to

9:36

know who that individual was.

9:38

Yeah. No, that's awesome. So Richard, before I, we like dive

9:39

a little bit deeper into infinite

9:43

banking and talking about your mentor

9:43

I was taking some notes as you were

9:47

going and I'm curious as to what

9:47

this virtual apartments were like.

9:52

You described it and in my head I'm

9:52

telling myself this sounds very much

9:56

a real estate syndication, right? So are you actually going in as like a

9:58

partner on these properties and you're

10:04

completely hands off, but it's an actual

10:04

physical property or is it really virtual?

10:10

What does that look like?

10:11

So the idea and of course when this was being presented, I remember it was like

10:13

one of those you go to the dinner,

10:16

they pay for dinner and they try to

10:16

sell you something basically ideals.

10:19

And it was a great dinner by the way. It was fantastic.

10:22

Time shares.

10:22

Yeah. Yeah. They, the idea they had an image.

10:25

Cause this was before

10:25

PowerPoints were really good.

10:27

It was really, the internet was

10:27

still pretty crappy at that point.

10:30

We're talking we're talking a long time ago. We're talking like 1999

10:31

is what we're back to.

10:34

And they had an image of an apartment

10:34

building and then they had Different

10:38

condos in that building, but that had

10:38

different v different looks about them.

10:42

And then, imagine like a, like

10:42

an image where it points off to

10:45

a point in the map and it's hey,

10:45

this one's over in this location,

10:48

this one's over in this location. So really it was just

10:49

having a condominium unit.

10:52

In different buildings that were

10:52

located in different geographic

10:57

locations, at least across Canada. So you're spread out a

10:59

little bit by city economy.

11:02

So municipal provincial or state economy.

11:05

And then, geographically across

11:05

the board, because where I'm from

11:08

in Alberta, it's very oil based. It's we're like the Texas

11:10

of Canada essentially. And there, there's a cycle that happens

11:12

there when the economy, when oil's up

11:16

and down and it causes a boom bust cycle. It's pretty severe and often

11:17

we're the economic engine that

11:21

leads a lot of the country. However, that engine shuts down

11:22

for a couple of years and then

11:25

before it ramps back up again. And during those cycles, it has

11:27

a real impact on market values.

11:30

It has an impact on rents. And so You're always in

11:31

some measure of that cycle.

11:34

So having something outside of that cycle,

11:34

that's at a different fa, different phase.

11:38

So typically, let's say in the

11:38

eastern section of the country,

11:42

manufacturing is much higher. They have a more stable cycle.

11:45

And when this, when this one

11:45

goes down, that one tends to

11:48

be in a superior position. So there's some stabilization

11:50

in your portfolio that you can

11:52

create through that mindset. Yeah. And that really.

11:54

It adds a lot of diversity.

11:56

Yeah, exactly.

11:57

Yeah that's interesting. So cuz again, like when you first

11:58

described it to me, it sounded like

12:01

a real estate syndication, but at the

12:01

same time it's so much different, right?

12:04

Because yeah, you're getting a

12:04

couple different units, but they're

12:07

gonna be in different buildings and

12:07

different towns in different areas.

12:10

So you actually own that unit, right?

12:12

But somebody else manages

12:12

it and takes care of it.

12:15

Is that how that works?

12:16

Correct. So that was the key feature that really,

12:16

no more Goliath to chase down exactly.

12:21

The concept was that they would institute

12:21

a rental pool scenario, and that

12:26

rental pool would be wholly managed. You wouldn't really have to, basically

12:27

it's, turnkey type property, obviously,

12:32

when you pay for the management

12:32

level, there's a cost of that.

12:35

That, turns the screws on

12:35

your cashflow a little bit.

12:38

But the purpose of these buildings, for

12:38

me upfront as a young man, wasn't to

12:41

generate a huge amount of cashflow I have. I got 60 years of working potential

12:43

that I didn't really need the cashflow.

12:47

What I wanted was the

12:47

asset to get it paid for.

12:51

Over a 15, 20 year timeframe so that

12:51

I would have this ongoing asset that

12:56

would be there for me, and then I would

12:56

just keep accumulating, was the concept.

12:59

And now I've gone about, since I've

12:59

learned a lot more in real estate, I've

13:02

gone about doing things a different way. But the premise of that never really

13:04

left my mind and it's simplicity.

13:08

Now. Shoot forward today, literally I

13:08

was having I, we bought another

13:12

unit with that same company. It's in a. An area that's been much more impacted

13:14

by market cycles, unfortunately.

13:17

Tell you a little horror story. It's at one time at the market peak.

13:20

It was appraised at 225,000.

13:23

Today, I'd be lucky to

13:23

get 30 grand for it.

13:25

We paid 79. That's over a 20 year timeframe.

13:29

Now it's in a very oil centric

13:29

marketplace that has been very depressed

13:35

and impacted in the last number of

13:35

years from some economic aspect.

13:39

The end result is I went and pulled

13:39

land titles, titles on the property from

13:42

about 150 units of 180 unit complex.

13:45

I paid a VA to go and get the data

13:45

and try to search those people out.

13:49

I put a one page lead page together with

13:49

a video saying, Hey, I want you to send

13:53

me your proxies for the next meeting

13:53

because I don't like what's going on.

13:56

We're gonna do a hostile takeover of this condo board. And then that's what we did.

14:00

And then it was been a long process. We're now in year three of

14:01

trying to revive and bring that building back in a place.

14:05

And we're literally just signing to

14:05

hire a new rental property management

14:08

company effectively today to try

14:08

to bring that back up in a format.

14:12

So the idea of the lack

14:12

of work that was there.

14:15

It was pretty good for the better

14:15

part of 20 years, but the amount

14:19

of work I've done in three years

14:19

outweighs that 20 years in my opinion.

14:24

So conceptually everything is good,

14:24

but it doesn't mean it always,

14:28

it's always gonna land home. So all I'm saying is that I think I'm

14:29

given certain real estate experiences.

14:36

Horror stories, if you will, so that

14:36

I have the ability to share those with

14:39

other people as the tales of the trenches.

14:41

And the more that you can hear some of

14:41

those as a real estate investor it doesn't

14:45

mean that you're gonna experience the

14:45

same thing, but when you have the context

14:49

of what someone else has gone through,

14:49

it can help you be more mindful as you

14:53

go about making your future decisions. Cuz a lot of people get so amped up

14:54

and excited about real estate, but

14:58

then they have really good years.

15:00

They're in that boom cycle, and as soon

15:00

as the winds of change come about, that's

15:05

when you start to re, you really get to

15:05

recognize were you built for this or not?

15:09

Do you have the stick factor

15:09

and the sustainability to

15:11

go through the hard times? Cuz hard times will show up.

15:15

Yeah that's super interesting. So no, I appreciate you going into

15:16

so much detail with that for me,

15:19

cuz I think it was it was something

15:19

I never heard of before, so it was

15:22

pretty neat to learn about that. Now let's get down to the meat

15:24

and potatoes of what we're gonna

15:27

talk about today, which is gonna

15:27

be infinite banking, right?

15:31

So now obviously, you got into

15:31

real estate, you saw some of

15:35

the good, the bad, and the ugly. And then, somehow it evolved into

15:37

where you're at today, where you're

15:42

now doing infinite banking, you

15:42

became your own banker and you utilize

15:46

that, to purchase more real estate. So if we could get into that a

15:48

little bit, if you could tell me

15:51

what is it that attracted you to

15:51

this method, and then what did you

15:56

actually learn from Nelson Nash?

15:59

Lots unpacked there. Here's what I'm gonna do. Yeah, I'm gonna, I'm

16:01

gonna get it this way. I'll ask a couple questions.

16:03

So just, if you're listening just close

16:03

your eyes for a second and picture this.

16:07

Imagine that you have. 45 properties, but it doesn't

16:09

matter if they're two, multi-unit

16:13

buildings, or they're just a whole

16:13

bunch of single family homes.

16:16

Okay? You got 45 properties. They're all 100% paid for zero debt.

16:21

You don't owe anyone else about them. You gotta pay your property tax and

16:23

everything, but there's no debt on

16:25

the properties, no incumbents, and

16:25

they're all producing a great cash

16:30

flow and you can access without

16:30

any questions, no questions asked.

16:35

You can go and access the equivalent

16:35

of a home equity line of credit up

16:39

to 90% of the current market value

16:39

of those properties instantly.

16:45

No, don't have to ask anybody's permission. You could just go and do it.

17:28

And if you did access any of that

17:28

money, you get to control at your

17:32

schedule how you repay the money. And no banker can call you and say, oh,

17:35

hey, we didn't get your interest payment

17:38

this month, because you control the terms.

17:41

Does that make sense? So just imagine that for a moment.

17:43

Yeah.

17:44

Now, heaven

17:44

forbid, God decides to call you

17:47

home and you're no longer with us. You've graduated.

17:50

All right. These 45 properties have to transition.

17:54

Let's assume 17 of them

17:54

are sold instantly.

18:00

Mike, instantly, at the moment that

18:00

you pass away, they're sold 100% tax

18:05

free, no capital gains, and they're

18:05

sold for their highest ever recorded.

18:12

Market value and you don't even

18:12

have to pay any real estate fees.

18:17

Okay. How are we doing so far? Sounds pretty good. Too. Good to be true?

18:19

You would say?

18:20

Yeah. Tell me more. How do you do that?

18:22

How do you do that now? Now, the remaining properties,

18:23

the other two, the other 28

18:26

properties are still there.

18:29

They're still available. You can still access 90%.

18:31

They're still producing a

18:31

cashflow and they're automatically

18:34

transferred tax free to the people

18:34

that you selected in your will.

18:39

With no additional

18:39

transfers or tax payments.

18:43

I'm talking about property, but I'm not

18:43

talking about property the way that we

18:47

think of when it comes to real estate. I'm talking about property in

18:49

the way of contracts, whole life

18:53

insurance contracts, and the story

18:53

I'm sharing isn't even my story.

18:57

It's a real true story of Nelson Nash, who

18:57

wrote the book, become Euro own banker.

19:01

He's the pioneer of this concept. He was an amazing individual.

19:06

Just to have a conversation with him could

19:06

have changed your life, in my opinion.

19:10

He left us and he

19:10

graduated in March of 2019.

19:14

It's been four years

19:14

since Nelson passed away.

19:18

He was calling people from his deathbed. He knew he was going into a surgery.

19:22

He was pretty sure he wasn't coming out. That's the kind of guy that he was.

19:25

Now, when Nelson passed away, he

19:25

had 45 life insurance contracts.

19:30

17 of those contracts or properties.

19:34

On his life. So the day that Nelson left, 17 of

19:36

them paid out a tax free death benefit.

19:40

Does that make sense? Bypassed probate, bypassed all

19:42

the stuff and they paid out

19:46

at their highest ever value. Okay.

19:49

So that's the highest appraisal of

19:49

the real estate, if that makes sense.

19:53

And the remaining policy contracts that

19:53

he had or pieces of real estate, the

19:59

other 28, they were on different bodies.

20:02

Nelson wasn't. He was the owner, but he

20:02

wasn't the insured individual.

20:05

Does that make sense? See, you can get an insurance

20:07

contract on anyone that you have a

20:11

legitimate business interest in, an

20:11

interest in that person being alive.

20:14

If you have an interest in them being

20:14

dead, it's gonna be hard to get the

20:17

contract, but if you have an interest in

20:17

them being alive, it's not that difficult.

20:20

Okay? So he had acquired those on his children,

20:21

business partners from the real estate

20:25

business and his grandchildren, and he

20:25

was working on his great-grandchildren.

20:30

Okay, so when Nelson left, those 28

20:30

contracts are still enforced, and they

20:34

automatically passed without taxation

20:34

to the next person in line that he

20:39

had selected to own those contracts. Usually it was the parent of a child or

20:41

the grandparent of a child, et cetera, so

20:45

that they would facilitate the management

20:45

of that until such a time as they go,

20:50

and then it can be transferred again. But those policies

20:52

continue to grow in value.

20:55

They increase in what's called

20:55

cash value every single day.

20:58

Uninterrupted, the ability to

20:58

access capital, just like a home

21:03

equity line is instantaneous,

21:03

except you're not getting it from a

21:06

traditional brick and mortar bank. You're getting it from the

21:08

insurance company that you co-own.

21:11

So when you take you, you pledge that

21:11

policy as collateral, just like a house

21:15

can be pledged and you access a policy

21:15

loan, it is an unstructured loan.

21:22

Unstructured meaning there's

21:22

no requirement for a repayment.

21:26

You as the policy owner, Have complete

21:26

and total control over the repayment time

21:32

method circumstance, that you wanna put

21:32

that money back in, and as you put it

21:37

back in, you get to use it again later.

21:40

It's just if you pay off a home

21:40

equity line of credit, another deal

21:43

comes around, you wanna borrow 50

21:43

grand and you're gonna go put it

21:46

on the next deal, you just do it. Same idea applies except you're

21:48

changing where the money's located.

21:53

Rather than putting your money and saving

21:53

your money and borrowing money from a

21:57

traditional brick and mortar bank, you

21:57

can save and access your money from a

22:03

mutual insurance company that you co-own.

22:05

So when you take a policy

22:05

loan, you co-own the lender.

22:08

Any interest that you pay them, it

22:08

goes into the big pool for the benefit

22:12

of everyone else that's an owner. They're not responsible to anyone else

22:13

other than their owners, which can

22:17

include you through these types of steps.

22:20

This is how you slowly and incrementally

22:20

begin to take back control of your

22:27

financing aspects of your life.

22:30

When I say financing, Mike, I

22:30

wanna expand on that a little bit.

22:33

There's a lot of people who are

22:33

debt free or, and they don't like

22:36

debt and they don't want, they

22:36

idea of a loan is a bad word.

22:39

Loan is any a bad word if you're

22:39

the consumer, but if you're a

22:42

banker and you're a bank owner. Loan is a good word. Loan is an asset.

22:46

Yeah, absolutely.

22:46

Every liability

22:46

is someone else's asset.

22:50

Once you really understand

22:50

that you just wanna change

22:52

positions with who the bank is. Right now, if someone is the banker

22:55

in your life, there's always someone

23:00

that has to perform the function. Banking is the movement of money

23:01

from one place to another place in

23:05

a relatively short period of time. That's what the transactional

23:07

nature of banking is.

23:10

But when you can harness and control that

23:10

process for as long as humanly possible

23:15

and over multiple generations, You're

23:15

the one that ends up with all the money.

23:20

That's what becoming your own banker is all about.

23:22

Yeah. No I love that, Richard, because

23:23

so I was talking to you a little

23:25

bit about this off camera. I do something called

23:26

Velocity Banking, right?

23:29

And we were talking about that a little bit. You described it when you were

23:30

talking about the HELOCs on

23:32

properties and everything. And it's in a similar fashion, I've

23:33

turned my house into my bank, right?

23:38

My house is my checking account. Now I'm not necessarily the bank.

23:43

I'm the the teller or I guess you

23:43

could say or the person who works at

23:46

the bank, where the difference would

23:46

be if you're doing it through your own

23:50

insurance policy, you are the bank owner.

23:52

Like you, it is your money, your bank,

23:52

and you choose, how you wanna do it.

23:58

I don't get the choice of my

23:58

terms with my heloc, right?

24:00

It's, Hey, you got 4% guaranteed

24:00

for five years after that.

24:04

It's variable. Good luck, so that's how that works.

24:07

I really liked the way you

24:07

described it because it's a

24:10

lot simpler to digest, right? And it makes it a little bit, again,

24:12

it's just more understandable and when

24:17

I look at what I'm doing with Velocity

24:17

banking, and this kind of makes me like.

24:21

I really should put more money

24:21

into my life insurance policy.

24:25

So I've got more access to that so I

24:25

could start borrowing from it as well.

24:29

So that that's definitely awesome. Now, what does it actually mean, like

24:30

when you say that you become your

24:35

own banker you described it, right? You shared how some of these methods work.

24:40

What do you do with something like that?

24:42

Like when you become your own banker,

24:42

what advantages do you have when

24:46

you wanna go buy a piece of real

24:46

estate or when you want to go, pay

24:50

something down your current primary

24:50

residence or anything like that.

24:53

What are some of the benefits

24:53

you get by being your own banker?

24:58

Yeah. I there's a few different directions I can go with that. So here's what I'm gonna, here's

25:00

where I'll take our conversation.

25:02

So we're always dealing

25:02

with borrowed money.

25:06

Nelson talks about this right

25:06

on page three of his book.

25:10

You finance every single thing

25:10

that you buy, you're either gonna

25:14

pay interest to someone else

25:14

to access their pool of money.

25:17

You're always dealing with a pool of

25:17

money, someone else's pool, or your pool.

25:22

There's no exceptions. When you access someone else's pool,

25:23

you know they had to build that pool.

25:27

They're not gonna let you

25:27

have access to it for free.

25:30

You're gonna have to pay some kind of

25:30

a toll taker interest fees, et cetera.

25:34

In order to access their pool, you're

25:34

gonna have to pay with signing a contract,

25:38

a pledge of repayment, and you're gonna

25:38

have to go through a bunch of Mickey

25:42

Mouse paperwork just to get access to

25:42

their big, fat protected pool of money.

25:46

That's the way that it works. He who has the gold makes all the rules.

25:49

You've heard that expression before. When you use your pile of

25:51

money, you don't have to fill

25:54

out the Mickey Mouse paperwork. But if you don't treat your pool of

25:55

money as though it has a cost, the

25:59

result is your money's gonna deplete. You're not gonna be replenishing it

26:02

effectively, so you're gonna give

26:06

up the interest potential of your

26:06

money because of the way that you're

26:10

using it and thinking about it. So you're either gonna pay up to

26:12

someone else's pool or you're gonna

26:16

give up what your pool can do. That's called opportunity cost.

26:19

So you finance everything you buy. There are no exceptions.

26:23

Once you fundamentally, truly understand

26:23

that, Now we can build from that to start

26:27

thinking how do we change the game to

26:27

put you in the driver's seat for the best

26:32

possible, most efficient outcome that

26:32

cascades across the most generations.

26:37

That's where insurance comes in. Not all insurance, and the way that

26:39

you build and set up the insurance is

26:42

critically important, but it's a tool.

26:45

You know when you want to

26:45

go buy real estate, you can

26:47

go call for sale by owners.

26:50

You can go on the MLS yourself and

26:50

you can go and write a bunch of offers

26:53

or you can get a realtor to go do

26:53

a bunch of that stuff for you and

26:56

you can create some leverage, right? So there, there's a variety of ways

26:58

you can go about doing it, but probably

27:02

having a real estate professional

27:02

that's experienced in your market

27:04

area that can guide you and do a

27:04

lot of the legwork is often the most

27:09

efficient, cuz it saves you time. So the vehicle in this case is

27:11

the realtor that you would choose.

27:14

All right. Insurance well-structured for

27:15

high cash value is just a tool.

27:19

It's a tool in your financial toolbox.

27:21

Now, if Mike, have you ever

27:21

used a chainsaw before?

27:26

Actually,

27:26

once, once I used the chainsaw once.

27:29

Yeah.

27:29

Okay. They're a lot of fun. I'm a big fan of the chainsaw, but if

27:30

you've got a chainsaw and you sharpen

27:34

the blade, you got the right oil, gas

27:34

mix in there, the chain is oiled up.

27:38

It's all ready to go. Gas powered.

27:40

You fire that bad boy up. Everyone can picture in their

27:41

mind the sound that it makes,

27:44

you rev it up a couple times. It's pretty interesting sound.

27:46

It's got that gas smells

27:46

going in the background.

27:48

If I did that and then all of a

27:48

sudden I just handed it over to

27:51

some guy walking on the street. Who's never seen a chainsaw before?

27:54

I say, here you go buddy. Good luck. Hope you get there.

27:57

And I turn around and walk away. What's the probability, low, medium, or

27:58

high, that person might wreck the tool?

28:05

I would say pretty high.

28:06

Pretty high. What's the probability? Low, medium, or high?

28:09

They might seriously injure themselves.

28:13

Probably about the same high. I would say medium because

28:15

I, self preservation.

28:17

I think you would know better than to

28:17

go touching the chain or something.

28:20

Yeah. There's certain intuitive things that

28:20

are gonna, they're gonna kick in.

28:23

But the reality is it

28:23

wasn't the chainsaw's fault.

28:26

The chainsaw didn't do anything. A chainsaw's just a chainsaw.

28:29

It's the user that makes the difference

28:29

on how the chainsaw operates, right?

28:33

So if we don't understand what

28:33

the tool's doing for us, or how

28:36

the tool operates, Or how to use

28:36

it, then the tool is meaningless.

28:41

Okay? The tool in the hands of

28:41

a fool is no tool at all.

28:44

So what we focus our energy

28:44

on, what Nelson taught us

28:47

to do is that we focus on. Our understanding and our education

28:49

so that we understand as an

28:53

operator, how do we implement the

28:53

tools, financial tools that we're

28:56

given to their maximum efficiency. And that's all insurance is.

28:59

It's just a tool. I refer to the type of insurance we

29:00

use, which is participating, dividend

29:04

paying whole life insurance where you

29:04

are co-owner in the insurance company.

29:07

I basically look at it as the Swiss

29:07

Army knife of financial products.

29:11

When you got a Swiss Army knife. You can get like the little mini one

29:12

that comes with from they give 'em

29:16

a giveaways at the liquor store or

29:16

something when you go buy something.

29:18

Or you can get like the Cadillac

29:18

that's got like a spoon and a fork

29:21

on it and it's got a three inch saw.

29:23

It's got all these different features. We're talking about the one

29:25

that's the Cadillac version.

29:28

But if you look at the different

29:28

knives that are on there, and if

29:30

I had like a knife for whatever,

29:30

cutting vegetables or cutting meat,

29:34

and then I had my Swiss Army knife. Which one are you gonna

29:36

choose to do the job? Probably the one that's meant for

29:38

cutting the food at your table.

29:41

But in a pinch. The Swiss Army knife's gonna do

29:42

a pretty good job considering, so

29:46

maybe it's not the best at all. Things.

29:48

But it can do way more things

29:48

than any individual tool can.

29:53

Does that make sense?

29:53

That's a great analogy. I really like that Now, so Richard, I want

29:54

to ask you about the other side of it.

29:59

We were talking about, if you borrow

29:59

from a heloc, you gotta pay interest.

30:03

There's fees you gotta pay. I know when I took my HELOC out,

30:04

and even when I raised the amount

30:07

I had to pay, like these fees,

30:07

just for the paperwork itself.

30:11

Right now new appraisal probably

30:11

you're not really dealing with that

30:14

with the insurance side, but on

30:14

the insurance side, you're paying

30:18

a premium every month for, for the

30:18

actual death benefit and other things.

30:22

So what does that kind of look

30:22

like compared to something

30:27

like a HELOC where I'm not. I pay interest now, but if I'm not

30:29

using it, I'm not paying for it.

30:33

Now mind you, I do have a whole

30:33

life insurance policy as well.

30:36

I also pay for that separately, but I'm

30:36

just, for my listeners, like what would

30:40

you say is like the biggest benefit to

30:40

having to pay that that monthly premium?

30:45

Here's the way

30:45

I would look at to me, it's best

30:47

aligned with a long-term buy

30:47

and hole piece of real estate.

30:49

And your listeners will probably

30:49

be very familiar with that

30:52

from listening to your program. When we think about the plain

30:53

vanilla long-term buy and hold real

30:57

estate strategy, I'm gonna go buy

30:57

a property, I'm gonna put a down

30:59

payment, probably somewhere in the

30:59

area of 10 to 20% down, depending on

31:03

the market condition and the rules

31:03

and how I can structure the financing.

31:06

I'm gonna get some tenants

31:06

and they're gonna pay for it.

31:09

Every once in a while I'll have to fork

31:09

out some maintenance and do this and do

31:12

that, and there's some risk involved. But eventually that mortgage is paid

31:14

for and every time that the payment

31:18

gets made, some equity gets created,

31:18

and hopefully if I've been good

31:23

strategically at my purchasing, The

31:23

market value is gonna go up over time.

31:29

And so value goes up, mortgage goes down.

31:32

What we have in the middle, as

31:32

I refer to as the jelly and the

31:34

sandwich, that's the equity, okay? There's this old commercial

31:36

that we used to have in Canada.

31:39

There was these, it was a bank commercial. There's these two little kids and

31:40

they're up late at night in their

31:42

pajamas and one kid's got a flashlight

31:42

and the other brother, they're looking

31:45

around in the living room and the

31:45

little boy says to his older brother,

31:49

says, what are we looking for? Equity?

31:53

Dad said it's trapped in the walls. Okay.

31:57

And so that's your long term buying.

31:58

Thats pretty good commercial.

31:59

Yeah, it's a good commercial. That's your long-term buying

32:00

hold piece of real estate. As the mortgage gets paid, you

32:02

get access to some of the money.

32:04

As the rental, as a value goes up,

32:04

you get access to some of the money.

32:07

However, you can only get that access.

32:10

If the HELOC is in place, or if you

32:10

got it set up and if you're allowed to

32:13

keep it and you often have to go back

32:13

and refinance, but on day one, when

32:16

you buy the property, you don't really

32:16

have any equity because the bank's

32:19

already lent you the maximum amount. You're probably looking 3, 4, 5

32:21

years down the road before you can

32:25

restructure that loan in some way.

32:28

To get access probably to your

32:28

original down payment capital.

32:30

Does that make sense? And I'm not talking about the

32:31

Brrr strategy, people doing flips

32:34

and creating value on the buy.

32:37

I'm talking about your. Plain vanilla buy and hold strategy.

32:40

Make sense? So the same thing applies to getting

32:41

a whole life insurance contract.

32:45

When it's well-structured,

32:45

the premium is the solution.

32:48

So every time that you put premium

32:48

in, you're creating equity.

32:52

Whatever equity is created,

32:52

you can instantly access 90%

32:56

of it with no questions asked. No questions, okay?

33:00

There might be a minimum loan amount from

33:00

the life company, like we work with one

33:04

where the minimum loan amount's 500 bucks. Great.

33:06

I was on a call with a guy today. I said, if you deposit $500

33:07

tomorrow, you're gonna have, you're

33:12

gonna instantly create a little

33:12

bit more here from what you got.

33:14

And you could probably take a loan of $600. It's a brand new policy.

33:18

He's just getting started. He's a young guy. Just literally just getting his feet wet.

33:21

But that's the key thing. So as, and then every single year,

33:22

here's the difference with real estate.

33:27

The market can go up and the market can go down. The rental market can go

33:29

up and it can go down. And you've experienced those things, I

33:31

suspect, and you've probably had a lot

33:34

of people talk about it on your program.

33:36

Absolutely.

33:36

I already shared a couple stories today. I can give you more if you really want,

33:38

so you don't get to control the market.

33:42

You and I don't get to control the

33:42

next presidential election, by the way,

33:45

that affects us in Canada pretty big. You don't get to control the CB DC's that

33:47

they're coming out with or any of those.

33:52

The gold price territorial conflicts

33:52

happening in other parts of the world.

33:56

Global strife. We don't control any of that.

33:59

We have to make good,

33:59

rational business decisions.

34:02

With the insurance contract, none

34:02

of that matters because guaranteed

34:05

accumulation is built in from

34:05

day one if it's structured right.

34:09

Which means your equity is ever

34:09

increasing day after day, year after

34:13

year, and it cannot be stopped. The only thing that can stop it is the

34:15

policy owner's behavior or somebody

34:21

dies, and if somebody dies, there's

34:21

a lot more money coming out than

34:25

what you've put in, which is, by the

34:25

way, my definition of an investment.

34:29

The best investment is the one that

34:29

pays the most when you need it the most.

34:36

Yeah. No, that's fantastic. All right, Richard.

34:38

I wanna ask you one more thing before

34:38

we transition this into the final round

34:44

because you said something earlier that

34:44

really caught my attention when you were

34:47

talking about, what Nelson did near the

34:47

end of his life with his passing, but his

34:53

focus was on calling everyone else and

34:53

making sure they knew what to do because.

34:58

He had policies on other people.

35:00

So how do you go about let's say that, so

35:00

I, I have, my own policy, my wife has one.

35:08

Let's say I wanted to open up policies

35:08

on my kids in a similar way, but

35:13

how do I go about doing it where I'm

35:13

actually the owner of it and then I can

35:17

pass it down to them, after my death

35:17

similar to the way that Nelson did.

35:20

Like, how do you structure something like that?

35:23

Super good question. In fact we literally just did a

35:23

Canada wide tour of our family banking

35:27

conference, and what we do is we teach

35:27

people about family banking and how

35:31

to have a family banking meeting and

35:31

integrate conversations about financial

35:36

accumulation and wealth preservation

35:36

and keeping all the money in the family.

35:42

We're talking about a family aquarium

35:42

where the money never leaves the family.

35:45

That's what we teach people how to do.

35:46

That's what I'm trying to do with my kids. I wanna build something for

35:48

them that, They can carry down

35:52

to their kids and their kids.

35:53

There you go. But bulletproof sustainability,

35:53

that's what it's all about.

35:56

And so as, so I'll use

35:56

myself as an example.

35:59

So I currently have 12 insurance policies.

36:02

I'm opening a 13th one this year.

36:04

I haven't made the decision yet,

36:04

but I'm quite confident after what

36:07

happened today that I'll probably be

36:07

doing it in the next 30 or 45 days.

36:10

And.

36:10

How many on yourself?

36:12

Most of them are on me. I have two for each of my kids.

36:14

I have a five and a seven year old,

36:14

and then I have three on my wife.

36:18

One of 'em is pretty small, but I

36:18

have three on my wife and then the

36:20

rest are on me, and so I'm the one

36:20

that's the primary income earner,

36:25

so I'm the one that needs, so just. Logically speaking, I'm the one

36:26

that needs the most coverage.

36:29

The family will be most impacted

36:29

if something happens to me.

36:32

Okay. So when we think about building or

36:32

plan, building a plan, it, a lot of

36:37

things go into that con that that,

36:37

that construction, because it has to

36:41

think about what's unique to you and

36:41

your family, your goals and objectives,

36:44

and also how's the structure set up?

36:46

Who needs the coverage, et cetera.

36:49

So a lot of people wanna go

36:49

do it on their kids first.

36:51

I'm like, okay, what happens if you're dead? How are your kids gonna deal with this?

36:54

They're not gonna deal with it. Yeah. We need to solve a problem on you first.

36:56

Okay. So I'm really glad to hear that you

36:57

and your wife are properly covered.

36:59

So when both of my kids turned.

37:02

Basically with the 16 days of age policy

37:02

application went in on both of 'em.

37:06

Okay. And that's the earliest you can insure

37:07

a child typically, at least in Canada.

37:10

And I've since got another

37:10

policy on each one of them, and

37:13

I plan to get more in the future. I'm the owner of most of those contracts.

37:17

My wife owns a couple, and if

37:17

something happens to me, I have it

37:21

set where my wife is the contingent

37:21

owner on the kids' policies.

37:26

So my policies pay out. My wife, I own one on her.

37:29

She takes over ownership of it and the

37:29

kids' policies automatically pass to her.

37:34

If she goes well, then the kids' policies

37:34

pass to them and a trustee looks after

37:40

them until they're 18 years of age. Okay.

37:42

And we select who the trustee is

37:42

and then we'll have additional

37:45

context in our will to explain what

37:45

we want the kids to do with that.

37:49

So I'll talk to you a little bit more

37:49

about the idea of family banking.

37:52

We have a family banking meeting

37:52

now my kids are only five and seven.

37:54

We only keep their attention

37:54

for about 25 minutes.

37:57

I make sure that my wife gets a treat

37:57

that the kids are gonna wanna do and

37:59

we align it with a family vacation. So we did it at spring break here.

38:03

We were done in Vegas. We rented a house for a few weeks. It was great.

38:05

We had a pool and everything was wonderful. At the last day.

38:08

We have a family banking meeting and we spend the first. 10 minutes just talking about

38:10

what are all the amazing things

38:13

that we did when we were here. What are some of your memories?

38:15

What are your takeaways from our event? Hey, why are we able to

38:17

do something like this?

38:19

And the kids say, because of

38:19

the family bank, dad, boom.

38:22

High five. High five. Big hugs. I say, okay, that's great, Nathan, Nora.

38:26

Okay, now that we've come on the

38:26

family vacation and we're gonna have

38:29

our family banking meeting, when we

38:29

go back home, what are some things

38:33

that we need to make sure we do? As far as the family banking system says,

38:34

oh, we have to put the money back in.

38:38

Dad, high five. High five. Why is that?

38:40

Why do we put the money back in

38:40

so we can use it again later?

38:45

My kids don't know about insurance policies. They don't know about

38:47

rental property investments. They don't understand a lot of

38:49

these other things, and they don't

38:51

need to because they understand the

38:51

fundamental basics of how we're gonna

38:55

cycle money as a family, and we're

38:55

gonna keep the money in the family.

38:59

Now, we can expand on that as

38:59

they get older, but for right

39:01

now, Those are that's it.

39:03

That's all I need to understand

39:03

because everything else is dead simple.

39:06

If you get those fundamentals

39:06

in place and yeah.

39:09

What we talked about in this family

39:09

banking meeting is I started to bring up

39:13

the idea of passive versus active income.

39:16

Now, they don't see me. They know I got the

39:17

podcast studio at home. They see me, standing on my

39:19

walking treadmill, talking to

39:21

you and having a good time. And I've got my computer and my

39:23

headset and they come in, they

39:25

check out the, what's going on down here every once in a while. But they don't know how

39:27

that translates into money. It's hard for them to visualize.

39:31

My wife, she makes these crazy art

39:31

cool projects and outta wood and

39:35

does all this fun wood crafty stuff,

39:35

and then she sells that stuff.

39:39

People show up at the door and they

39:39

bring money to buy her cool stuff

39:42

so the kids can actually see that. So we talked about that

39:44

as being active income.

39:47

And then I said, now kids, you know

39:47

that Daddy's written a few books.

39:50

So I brought a couple of the books and,

39:50

so here's our book, cashflow As a Leader.

39:53

I'm gonna do that. I'm gonna do a giveaway for your

39:54

listeners on that, by the way.

39:56

And our first book Canadians

39:56

Guide to Building Without Risk.

39:59

And we just launched Keep

39:59

Taxes Away From Your Wealth.

40:02

So I had the books there and I said, now

40:02

kids, every single time one of these books

40:06

gets purchased and someone buys them,

40:06

that creates what's called a royalty.

40:10

Now, that's a passive income. Daddy did all the work to

40:11

write the book one time.

40:14

Every time for the rest of time

40:14

that this book gets sold, that

40:18

produces a little bit of money. And that's called passive income

40:20

cuz we did the work once and now

40:23

we don't have to do the work again. So I use that meeting as an opportunity

40:24

to educate the kids about something

40:28

new and we're just gonna keep

40:28

expanding on those concepts and then

40:31

relating them back to the simplicity

40:31

of keeping the money in the family.

40:36

I'm gonna go one step further on this. Cause that when my kids are

40:38

older, they're gonna need cars.

40:43

They're gonna need, if they want

40:43

an education, they can get it.

40:46

But they're paying for the education. We're financing it, but they're gonna

40:48

pay the family system back because

40:52

every dollar they pay in, they're

40:52

gonna get to use for their retirement.

40:56

So they're incentivized to put it back in. Does that make sense?

40:59

And they're less likely to

40:59

drop outta school if they

41:02

know they have to pay it back. Okay.

41:04

It's true. It's true.

41:05

I want to create an incentive. I plan on maintaining ownership until

41:07

I'm gone, and then my kids are gonna

41:12

receive a death benefit from dad

41:12

and there's gonna be an outstanding

41:15

policy loan on their policies. They're gonna have instructions to

41:17

pay those off first and refill the

41:21

tank so they can reuse all that

41:21

for the rest of their own life.

41:25

Then take the remaining amount of money. Buy new contracts on every body

41:28

that they can possibly insure.

41:32

Okay. So they can keep that system going. So when they need a mortgage, when

41:35

they wanna go buy property and they

41:38

wanna go buy their first place, we're

41:38

taking a policy loan to do that.

41:41

A mortgage will be created with the

41:41

family, it could be registered on

41:44

title, and they can make payments.

41:47

So if they want to go sell it, then

41:47

they have to pay the family banking

41:50

system back with the proceeds,

41:50

just like a regular bank would.

41:53

That's the way that we're gonna

41:53

operate as a family bank and all

41:56

the money will come back to home

41:56

base so that it can be repurposed

42:00

for another member of the family. As long as they can keep that cycle going.

42:05

That's amazing. That's really awesome. Not only did we talk about.

42:09

Real estate, infinite banking, but

42:09

also this financial literacy for your

42:13

children which I think is so huge.

42:15

I'm all about that. I even play the cashflow

42:16

for kids game with my kids.

42:19

They absolutely love it. No, I appreciate that.

42:21

So Richard I would like to go ahead and

42:21

transition this into the final round.

42:25

It's where I'm gonna ask you four

42:25

questions that I ask everybody

42:27

that comes on the show and gives

42:27

us an idea of how you are under

42:31

pressure, which I'm pretty sure. I know how you're gonna be, so if you're

42:33

ready to go, we'll get that party started.

42:36

Lock and load.

42:37

All right, let's do it. Okay. So Richard, the first question

42:39

is, what's the biggest mistake

42:42

you've ever made in your finances

42:42

investing real estate or business?

42:48

Biggest mistake

42:48

I ever made was being too trusting

42:52

and not taking the extra time

42:52

to do a bit more due diligence.

42:57

I lost a few dollars on a few different

42:57

projects that could have been avoided

43:00

with a little bit of extra patience.

43:04

Sure, yeah. That is definitely a common

43:05

response to that question.

43:08

Yeah. So I've definitely heard that before,

43:08

so I appreciate the transparency there.

43:10

Sometimes, those mistakes like that

43:10

become a great piece of education for us.

43:16

I just chalk

43:16

it up to an expensive seminar.

43:18

I would've paid, I would've paid

43:18

someone for the education anyway.

43:21

Yeah. Yeah. Perfect. There you go. Okay, so the next question, Richard, is

43:23

what is something that you've learned that

43:28

you wish you knew when you first started?

43:32

That's dead simple. I wish I would've read Nelson. I wish someone would've given me Nelson's

43:33

book when I was in my early teens,

43:37

or at least when I was 18 years old. If I would've read that book

43:38

first I can only begin to imagine

43:42

what my life would be like today. It would've changed everything.

43:46

Absolutely, appreciate that. Okay, Richard, next question.

43:49

You see these all kind of tie into each

43:49

other but do you have any tips or tricks

43:53

that you would recommend to someone

43:53

that is just getting started out today?

43:58

Yeah. I think that, the concept of being an

43:58

honest banker is something that Nelson

44:03

talks about in his book, and what that

44:03

really means is it helps you understand

44:06

what's called Parkinson's law expenses

44:06

rise to equal income or a luxury once

44:10

in ge enjoyed becomes a necessity. Nobody wants to have hand crank windows

44:12

anymore on their car or all electronic.

44:16

You got air conditioning in your

44:16

seats and you got heated seats.

44:19

Once you've had that, it's pretty hard to go backwards. So recognize how that creeps into your

44:21

life and being an honest banker is if you

44:27

were willing to give someone else your

44:27

money for an extended period of time,

44:31

let's say a car payment or whatever, a

44:31

soon as you've made that payment or paid

44:36

it off, don't stop making the payment. Just change who gets the money.

44:39

Keep the money in the

44:39

family and commit to that.

44:42

And if you commit to that, what'll

44:42

happen is your finances will balance

44:48

to that and it'll create more

44:48

capacity, more capitalization, and

44:52

all of a sudden that buildup will turn

44:52

into an opportunity fund that will

44:56

cascade for you on an ongoing basis.

44:59

Yeah, that, that's awesome. That's really awesome.

45:01

I appreciate that. Okay. And the final question, Richard, of the

45:03

final round is, and I'll preface this

45:08

with besides your own, but do you have

45:08

a favorite business investing or real

45:13

estate related book or podcast or both?

45:17

Yep. I would say Who not How by Dan Sullivan.

45:21

Dan Sullivan of Strategic Coach. I'm a member of Strategic Coach.

45:24

Dan Sullivan is another individual. He's tremendously changed

45:26

my life in my trajectory.

45:29

He has a number of podcasts. One of my favorite podcasts

45:30

is him with Peter Diamandes.

45:35

Who's a very smart guy. He's a futurist. The podcast is called Exponential Wisdom,

45:37

and they only record maybe about once a

45:42

month or a little bit more sporadically. But you can learn about like future

45:44

tech, ai, the implementation of

45:48

different types of health, longevity,

45:48

techno talk a lot about longevity.

45:52

Peter Demanis plans to

45:52

live to 700 years of age.

45:55

Dan Sullivan's gunning for 147.

45:57

My personal goal is 165 because I

45:57

wanted to be higher than Dan Sullivan's.

46:01

And so as far as I'm concerned, I'm only

46:01

25% through my lifespan and the type

46:05

of technology that's coming out today

46:05

and the way that we can think about it.

46:09

From a perspective of what it

46:09

means to you if you're alive

46:12

today, and how that technology is

46:12

improving in your own longevity.

46:15

Once you can expand your horizons

46:15

on what's possible, the types of

46:20

things and actions you take today

46:20

to lead you to that outcome change.

46:24

And that's the type of stretched

46:24

thinking that I've been able to receive

46:28

from listening to their program.

46:31

That's awesome. I really appreciate that tha Thank

46:31

you for sharing that with us.

46:34

Okay. That is it for the final round. You survived.

46:37

Pat yourself on the back. But hey, so I do have another

46:38

question I want to ask you.

46:42

And this is separate from all that, but

46:42

this one's really important because I feel

46:46

like we had a really great conversation. I learned a lot.

46:49

Got a nice little page of notes down here.

46:51

And I'd like to know because my listeners

46:51

are probably also wondering this.

46:55

Where can people find more

46:55

information about you?

46:58

Can you share your website with us Social media? Where can we listen to your podcast?

47:02

Where can we find your book? That would be all awesome.

47:05

Yeah. So first off is that, I'll happily

47:06

give your listeners a, they can

47:08

get a free copy of Cash Follow As a

47:08

Leader by going to Cash follows.com.

47:13

That's cash follows.com. You can download it right there.

47:15

There's an ebook there. You're welcome to go

47:16

purchase it on Amazon. And nice, simple place to go.

47:20

Our recent book is a little bit

47:20

more Canadian oriented, but I

47:23

still, I do think there's gonna

47:23

be a lot of value for Americans.

47:25

It's called Keep Taxes

47:25

Away From Your Wealth.

47:28

And it talks about the difference between

47:28

being, moving from like a self-employed

47:31

to an incorporated category and how

47:31

that can impact you a little bit.

47:34

And as far as our podcast is concerned,

47:34

it, it's pretty easy to find.

47:38

We're Wealth Without Bay Street. Bay Street is the Canadian

47:41

equivalent of Wall Street.

47:43

And so we just thought that was fun. Tongue in cheek there.

47:46

You go. And our podcast isn't really Canadian.

47:48

It's really North American. We do help people in the States.

47:51

We have an American company called Life, Eva. We're able to help people out,

47:54

and so we are able to do that and

47:56

facilitate those conversations. So simply reach out and if it's

47:58

something, once you get a copy of

48:01

Nelson's book you have a chance to go. Some of those resources

48:02

would be really helpful. One last resource I would really

48:04

recommend people check out is a

48:08

few years ago we commissioned a

48:08

documentary film on Nelson Nash.

48:11

It's only 60 minutes long. You can go to Nelson Nash film.

48:16

That's nelson nash film.com,

48:16

and cast it up on the smart tv.

48:20

Grab some popcorn, get your favorite beverage. Sit down with your spouse, especially with

48:22

your spouse, sometimes in most households.

48:26

There's one main primary person who does

48:26

most of the financial stuff, and the

48:30

other person's along for the ride, and

48:30

they said, oh, you've got it, honey.

48:32

You just take care of it. That's very common, and what I find

48:33

is that Nelson is like the spouse

48:38

equalizer, so if you just get your

48:38

spouse and sit down in front of Nelson

48:42

and you'll hear Nelson story, it goes

48:42

a long way to help people understand

48:45

how this type of a concept, this idea. Can be a positive influence in your life,

48:47

and you can learn through his experience.

48:52

To some degree. It doesn't teach you the ins

48:52

and outs of Infinite Bank. That's not a purpose.

48:55

The purpose is to recognize and understand

48:55

the impact that this made for Nelson

49:00

personally, and then how it showed

49:00

up in his life and his family's life.

49:03

It's a very heartwarming and

49:03

touching I think thing to go through.

49:07

One of the things you discover in there is

49:07

how Nelson won the Blinking Lights Award.

49:11

There's an organization called the

49:11

Foundation for Economic Education.

49:14

That's f e e.org. fee.org.

49:17

Amazing organization based around

49:17

the principles of Austrian economics

49:20

and the President Emeritus. There Present currently Larry Reed.

49:24

Amazing guy. We've had him on his podcast. He'd be a great guy for

49:25

your podcast, by the way. And he was the one who delivered

49:27

Nelson the Blinking Lights Award.

49:31

It's meant to signify. During the Cold War in Poland, in

49:33

Warsaw, there was an underground

49:37

radio where they were broadcasting

49:37

the principles of liberty and freedom

49:42

to the oppressed people in Poland

49:42

under that regime during the Cold War.

49:47

And at one point in time, they

49:47

would have to pack up and move

49:50

every night to a different location

49:50

because they were always after them.

49:53

And one time they asked, they said, if you

49:53

can hear us broadcasting the spirits of

49:58

the Spirit of liberty, Link your lights

49:58

and the entire sky of Warsaw lit up.

50:05

That's how much people crave

50:05

liberty and what can be provided.

50:10

And so they created an award to

50:10

honor people who distinguishly

50:14

represent those ideals.

50:17

And thankfully Nelson was blessed to

50:17

receive that award before he passed away.

50:21

That's awesome. Thank you so much for sharing

50:21

that and that extra tidbit there.

50:24

That's fantastic. So for my listeners, definitely go

50:25

check out the nelson nash film.com

50:29

and I'm definitely gonna watch that. It sounds like it's gonna be a

50:31

very interesting documentary and.

50:34

And learn a lot more about

50:34

what we discussed today.

50:37

So Richard, I just, again, I wanna

50:37

say thank you so much for taking the

50:41

time outta your day to join me today. I know yesterday wa was crazy.

50:45

I had a plumbing issue at the house. Literally, as we were supposed to

50:46

start the podcast, I hopped on to

50:49

tell you, Hey, we can't do this. I'm sorry.

50:52

So I appreciate your flexibility

50:52

for rescheduling with me to do it

50:55

today, and I genuinely appreciate it.

50:57

This was fantastic. Thank you so much again.

51:00

You're very welcome. Glad to be a part of it and

51:01

hopefully that's a ton of value

51:03

to everyone listening in today.

51:05

Absolutely. And hey, I also wanna thank my

51:05

listeners for joining me and our

51:08

special guest, Richard Canfield, on

51:08

the average Joe Finances Podcast.

51:13

Go leave us a five star review

51:13

and tell us what you liked about

51:15

today's episode with Richard. Aloha from Hawaii and have

51:17

a great rest of your day.