TRANSCRIPT 🔗
Hello everybody, welcome in to this week's episode of the Magnify Wealth Podcast. I'm Cameron Gannon and I'm here with Scott Gannon. Good day. This week we're going to talk about mindset. We're going to talk about how important it is to shift your thinking away from, you know, follow the herd way of thinking that we've always been programmed into, and to take a step back and look outside the box and really rethink your own thinking.
Yeah, so this episode is really all about what becoming your own banker is all about. And it really requires outside the box thinking. And Nelson, the author of Becoming Your Own Banker, The Infinite Banking Concept, he is quoted right in the book as saying, you need to rethink your thinking. If you understand how you're thinking, then you'll recognize that you are likely, as most people are, based on, media out there, is we're trained to think a certain way, but we need to basically do the opposite of what we've been taught. This, when I learned this subject myself, was a challenge. I had to unlearn a lot of what I already learned in the financial business just to get onside with the idea of becoming your own banker or rethinking my thinking.
completely changing my mindset. mean, it really makes sense if you want to be uncommon, you you should be following the common strategy that the herd follows. Yeah, we talk about that all the time is, if you have an uncommon income or an uncommon lifestyle, then why would you want to have your financial strategies common?
So what this requires rethinking your thinking is to stop like I said stop thinking like others and instead think like the most Profitable and low -risk companies you'll find in the world and what are those? are banks Hence becoming your own banker. Yes, this means you need to think like them where they always focus on reducing risk, remaining in control and their masters at turning that into incredible profits. And it also means they are moving money all the time. It's not about, they don't think about compounding money, they think about moving money. So what that means is always receiving deposits from us depositors and also always receiving payments for loans that because they're re -lending our money, they're getting payments from other people. So it's all about cash flow and the movement of money.
So what happens when banks have that money coming in, especially payments, that's incoming cash flow? They redeploy it immediately into assets that produce more cash flow. It becomes a constant cycle of just, you know, into their account, back out into another account, back into their account, back out, and the faster that goes, the more money they're making. Constantly expanding cash flow. There's a reason why banks have grown like they have over the last, well, basically forever, especially in the last 30 or 40 years. And that has been the onset of us, you like you can go all the way back to the early 70s when they came off the gold standard and lending or creating money became the hobby of banks, if you will. I mean, that's something you can go right back to Caesar. So yeah, that's right.
Yeah, that's a whole other subject for another podcast. yes, you can end up being understanding that. yeah, there's whole gold story there with back in the days of Caesar. we'll stick to the current topic of banks for now. And so the key here is once you understand how banks make money and how they work and how they think, you're going to want to replicate it. Exactly.
So how do we take that thinking and put it into action, put it into full force? That's where we always talk about, Nelson mentions this in the book as well, is everybody, no matter what your career is or your business or your job or whatever, you should always be in two businesses, whatever that career is and banking. So what does that mean? Creating your own bank. Again, we're starting to sound like broken records here. Create your own bank.
And that's really what it is. And that bank is a separate business. Like any business with a product, banking is, banking's product happens to money. We both know the demand for money too is always very high because there's always people looking for money. So if you were in a different type of business and the demand was nearly unlimited, how much inventory would you want? As much as I can get my hands on. Exactly.
That's that's the way banking works is they want to get their hands on the most amount of money possible Knowing that they can constantly be cycling it like we talked about Exactly. So if you think of our own bank and How we're gonna build that then that's really what we need to do. So Talk about capitalizing, you know, especially designed, dividend paying, cash value life insurance.
It's really about capital, so we're putting cash in, you're capitalizing your bank. And really what we're saying here is... You're building your own inventory. You're building an inventory of cash you can act like a bank with. Whether that be investing in your own business, investing in yourself, lending money to other people, or investing in stock market, whatever it is, the reality is, is the more inventory you have, the more money you can deploy, the more cash...
cash flow you can produce and expand that over time. the great thing is the larger that pool that you have available, that inventory, opportunities start seeking you out rather than having to find them yourself at that point. Exactly. So there is a never ending stream of people that have great ideas and great opportunities and they're always looking for cash. So if you've got cash, guess what? You can be that supplier or a participator in the opportunity. So I know you already brought it up, obviously the ideal tool to build your bank is what we've talked about on every episode of this podcast, and that's high cash value, dividend paying, whole life insurance. Yeah, the ideal tool. So that's really it is. It is a tool, and obviously it has other uses. It has
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a death benefit.
And of course you can build in riders and zones. Like I won't go down the rabbit hole of all the different ways you can use life insurance to your advantage because we're talking about banking here. So we'll leave it at the banking. and this is why you need a good coach to set these things up, is you want it set up designed for maximum cash available as soon as possible.
There are certainly several ways to set up these life insurance policies that defer cash for a long time. Now, they tend to have bigger death benefits down the road, but they're really leaning on the cash early on. We don't do that. Importantly, how many banks are you looking for that are trying to defer the use of their cash? Good point. That's right. So, yeah, if you're thinking like a bank, you're not going to want to defer how much cash you have available.
That goes completely against the velocity of money. Exactly. So the second thing is obviously in order to get a life insurance policy you need to be insurable. So that's determined insurability and whether it's on a favorable basis or not. Lots of people are insurable but not necessarily on a favorable basis. It's getting better these days.
Yeah, it certainly is getting better. And we've got certain companies that are way better than others at insuring people that are, what we say is, not 100 % healthy, say. But if you're not insurable, what happens then? Well, that doesn't mean you're out of the game. Because if you have an insurable interest in anyone else, as long as they're upright and breathing and you have what we can attest as an insurable interest.
then you can insure somebody else and you keep control because you end up being the owner of the policy or your business or whatever. So ones are willing to go through the underwriting themselves. Exactly. So especially with business owners, there's lots of times business owners will insure. In fact, I just did one a couple of months ago. The owner of the company is insuring a key person and the company owns the policy and it's cash rich.
So Thirdly, guess the the biggest the biggest thing really is to find the available cash flow and Capital to actually get these things started because you know when it comes to banking you think those banks came out of thin air No, they didn't they they got capitalized themselves by by investors and or themselves I guess the beginners on banks. I'm not well researched on how the Canadian banks started up. But the key here is finding the cash flow and or capital available. And we've become a bit of experts on that. you know, as I tell lots of people, it probably on average, like there's anywhere from a thousand to $5 ,000 a month that we find people are losing unknowingly and unnecessarily. And what does that mean? Well, unknowingly means it's not your fault, unnecessarily means opportunity. we can find that money and channel it in a way to start your own banking business, then you're going to be better off. We can help capitalize this policy without you changing anything in your lifestyle because this is money that, again, was getting away from you that wasn't being used on your daily life.
Exactly. yeah, we never want to interrupt your or burden your lifestyle or change your lifestyle. The only way we want to change your lifestyle is to enhance it and and if we can find ways to to do that great and the other side is existing capital like there's lots of there's lots of clients I have that I've had money invested in various ways or saved and And we just pick away at that over time and cycle it through again understand that banking is about movement of money.
So by choosing to say, okay, I've got an investment here call it $100 ,000 and I'm going to cycle it through an insurance policy. That doesn't mean you're giving up whenever you're investing in. That just means that we're cycling it through. So you just put it right back into the same thing you want. Or you may find other opportunities. The reality is, we know how to make this an and asset.
And that's really what the cycling part is, is that's how we multiply your wealth, is taking your existing, what you're doing, and adding to it. And adding to it without changing your life. Well, I want to talk a little bit about this because I just wanna do a little word at the end here about when you are capitalized and opening your doors
I mean, this is obviously jumping ahead here, but understand what we're talking about here is we are saving money and when you're deploying it that could be in any several investments like we've already talked about the key to this is understanding yourself as an investor what is Attractive to you and what is makes sense to you and what are you well researched in. Period. You do not want to invest in anything you do not understand.
So it goes right back to Warren Buffett when you're talking about investing, Rule number one is never lose money. Rule number two, never forget rule number one. All right, thanks everybody for tuning into this week's podcast on the Magnify Wealth podcast with Scott Gannon. Let's see you again next week. Have a great week, everyone.