Script of Full Presentation as spoken by Dan Rust with added suggestions from Jim Kindred to get people interested in reading best selling author Nelson Nash’s book, Becoming Your Own Banker.
Question to get client to want to review this power point:
Would knowing how to convert liabilities into assets be worth 20 minutes of your time learning about?
Slide 1
Your liabilities are the banks number one asset.click
Slide 2
Over the next 20 to 25 minutes I’ll illustrate some financial concepts to you clickthat when applied will be worth thousands or tens of thousands of dollars to most people.
I am going to show you how to clickpermanently keep your money clickeven after you think you have spent it.
Is that an absolutely bizarre statement or what?
Is that something you would feel is worth talking about?
Click
Slide 3
None of our ancestors dreamt that they could go outside catch electricity and put it in a glass jar.Click There first impression of that is that Click it is absolutely impossible. Click – But now Thomas Edison comes along and now look all around you, we have all different shaped and sized glass jars with electricity going through them.Click
Slide 4
Everything we have and everything we do was once considered impossible by the general public. Click
Slide 5
Read this sentence here, two times over please.
Pause while client reads this twice.
Slide 6
Click How many times do you see the letter ‘F’ in this sentence? Wait for an answer then Click
Slide 7
80% of the time 8 out of 10 people will see three.
Slide 8
Now find the word ‘OF’ Click
When you and I were taught to read phonetically for some reason we would see of with a ‘V’ I set you up. You see I know most of you are not going to see that letter ‘F’ in the word ‘OF’ And the financial institutions have kind of set us up. Click
Slide 9
There are things that we haven’t been taught or trained to see. ClickSo sometimes, what you think you see, you really do not see.
Often people say well how come I haven’t about this before, Answer: Oh, so you’re the guy that has heard of everything before? (Arrival syndrome) Great, who is going to win the superbowl.
Slide 10
Read slide, so when we change the way a person thinks, we can change the way he acts.
We are in the belief changing business.Click
Slide 11
So, do you know the Click real reason why banks have drive up windows?
Slide 12
It’s so the Click real owner gets to see it every once in a while.Click
Slide 13
The truth is, most of us have been taught to look at money the same way and Click unknowingly we miss out on opportunities for increased wealth. Click
Slide 14
Now the Banks know something that I want to help us know, Clickthis strategy has been around for over 200 years and when you learn to use this 7702 Click you can finance all those things to the right if you become your own banker.Click
Slide 15
What this is about has nothing to do with the stock marketClick, Read whole list to the clientClick
Slide 16
What do banks know that we should know? Click
What do banks bank on?
I used to bank with them. They were going under right? Why were they attractive to Wells Fargo? There tier one assets. Here is Wachovia, a 33 billion dollar company. They have 14.2 billion of that in 7702’s.
Citi Group owns a company called Primerica, that sells what? Life insurance. What type of life insurance do they sell? Term. Why do they sell Term Insurance? The company that owns Primerica has Billions of dollars in Permanent Life Insurance. They don’t buy what they sell. (Read The Pirates of Manhattan. It’s a book of love, terribly edited but information is priceless, self published.)Click
Slide 17
Why do banks put money in 7702’w Click because it is safe, it’s liquid and you’ve got tax free growth. It’s also been around for 200 years so all the kinks are already worked out aren’t they? Click,
Slide 18
Now let’s assume I’m the greatest financial advisor in the world.Click
Slide 19
And I can double your money every single year.Click
So I’ll take your dollar, next year it will be two, then it will be four then it will be eight, you see where I am going. Click
Slide 20
So twenty years later, with no taxes showing up you’re going to have one million forty eight thousand and change. You’ll think I’m a member of the family won’t you?
OK, but what if while that was happening, you were taxed on 17% of the growth every year? Now, how much money do you think you will have twenty years later? Take a guess. Clickso is that less or more than you thought it would be? $177,428. If you have your CPA run the numbers on this you will get that same number every time. What if your state and federal tax bracket was 27% like many of my clients.Click Does that number surprise you? 57,666.
Now this is important. I have worked just as hard for all three people. I have doubled their money every single year for twenty years.
So when people say I don’t know about this insurance thing they are all caught up in rate of return. Click
Slide 21
So just how important in rate of return?Click
Slide 22
Read Supreme Court Judge article, word for word.ClickAfter reading last sentence while stating ‘Folks we do have choices’.ClickThe bridge does exist. Click
Slide 23
I use it, why don’t you?
Slide 24
We teach folks not only Click where that bridge is but how it works and to use it. That is my purpose.Click
Slide 25
The average American today is spending 54 to 64 cents of every dollar they earn on Click taxes and interest.Click
Slide 26
So if there is someway of getting some of that money backClick
Slide 27
TAX FREE I don’t mean tax deferred, I mean tax freeClick
Slide 28
Clickwhen do you want to know about it? Wait and make sure the client says right away, then you know you are on the right path with themClick
Slide 29
So let’s take a closer look at how this infinite banking concept works. Click
Slide 30
We all go through what we call the wheels of life, it looks something like this, we start out around here and we end up looking something like this. but of all these years of using wheels to get around, 60 of them are in a car and we will finance these cars for 44 of those 60 years.Click
(This is similar to the illustration in Nelson’s book)
Slide 31
So Clickwe know we can have use of a vehicle these three ways. Are we familiar with these three ways? Sure we are. I am going to compare these three ways with the infinite banking concept way.Click
Slide 32
This will be an apples to apples comparison as we start off. No Down Payment, No Trade-in, No Inflation.Click
Also we will be … read through the 4 financial considerations……Click
Slide 33
So remember, you don’t have to be rich to start a bank you just have to start some place and start to accumulate those funds. I’ve got college students who have come to my office because they found my books floating around campus and they would say boy I would sure like to do this but I don’t have the money.
I always suggest $50 a monthand they would almost have a hissy fit. And yet they will go out their way to tell me about the great deal they got, $360 a month they are paying for their outback car. And I say well golly, if you would sell that and buy something in the paper that will get you from point A to point B while you are going to school, when you graduate you can buy your outback with your bank.And some of them did that. And all of a sudden they are feeding their bank with $300 or so dollars a month and drive a dependable car worth $1,200 dollars or so.Click
Now you can lease the car and we checked some leases but because of penalties and mileage and other issues we couldn’t exactly tie that number down. We did find though that the average ranged between $168,000 and $208,000 and so I stabbed it in the middle and put $175,000. That’s what you have lost.
Click
If you buy the car we can tie that number right on. It is $138,000. And reason will tell you
Click
Now you can go ahead and pay cash. You are still going to lose over 44 years $116,000 dollars. Notice all these are below the black line and they are all in the red. ClickClick
We want to compare this with the Infinite Banking Concept way.Click
Slide 34
ClickTo see how it adds up there are a few things we have to do first
Click #1 the capitalization phase. You make regular annual or monthly payments to fund it just like you would a business. Becoming Your Own Banker is a business. You are starting a business.
#2 Now after you have gotten your 10,500 in the bank Clickyou can buy your car.Click#3 Now things start to change. You start to recycle payments into your bank on a monthly basis and things really start to change. Click
Slide 35
Because you will not be below this black line, you will be up here…and Forty four years later you will have $552,000 tax free dollars there. Have you invested one penny? You have simply financed a car a different way. You have not put at risk one single dollar have you?
And remember, this is only one car. After four years you will never have to go to a finance company again, because you are recycling and recycling your money back into your own bank.
Do you have kids? How many cars have you bought for your kids? Or your spouse? Or yourself for that matter?
How many cars have you financed so far? This is one car. What if you financed two cars? Would this number be twice as large? Or what if you financed a $30,000 car instead of a $10,000 car? Do you see what we are saying?
______
(Question: paying back more than putting in MEC – Ans: And wouldn’t it be terrible if you had so much money you actually had to open up a new branch office, just like every other bank in America?)
(Question: If someone says I can get 1% down the road so why would I want to pay myself 8%? Ans: Whose bank are you building? Yours. Where does the money end up? Are you going to get offended if you’re going to wind up with more money in your bank because you didn’t listen to the jingles on the TV about 1% or 0%)(Another answer: You are not just recapturing that interest rate, you are also recycling the principal and maintaining that liquidity. We are going to capture and recycle CASH.)
Let me clarify - you are not borrowing from yourself. You are borrowing from a company that you own. For example, If I owned stock in Bank of America, and I borrow money from Bank of America, am I borrowing my money? No, I am borrowing their money. We will clarify this further down the road.
(Every single time you are comparing Infinite Banking to any other type of ‘investment’ or place to hold money, you are always comparing the worst case scenario in banking with the best case scenario in the lost opportunity cost. Dave Ramsey always says get a good mutual fund. What’s a good Mutual Fund, 10% 12%? really? He is not talking about the last 10 years where MF’s have gone nowhere. He is talking about best case scenario.)
(we are not creating money out of thin air. You have to go through the capitalization phase. There is no way around it and some people just don’t have the money to do that. Two things you must have, assets and discipline))
Back to presentation:
We are showing you worst case scenario. One loan for one car, every four years. Is there a way that we can make this better? Yes. We can always make it better by seeing the ‘F’’s. You can’t see the ‘F’’s yet.Click
Slide 36
Financing impacts everything we do, it just does.Click
You will either pay interest to the banks to lease and finance things or Click you’re going to be losing interest that you could have been gaining but you paid cash for something. Click
Slide 37
The reason we do those is becauseClick we don’t have enough money so we lease it or finance it, we want the business write off, Click We pay cash for things because we had making the payment and paying the interest Click For most peoplethese cycles of leasing and financing and paying cash, never end. Because you and I have never been taught by anybody that there is a fourth way to finance cars, we are stuck in a rut. Click
Slide 38
Think about it. ClickWhen you make a paymentClickas you are leasing and financing things from banksClickor Clickwhen we pay cash for items ClickDo You Ever See That Money Again?ClickIt is goneClickBut what if you owned the bank? Click
Slide 39
You had total control of your money, Click now as you are financing leasing and paying cash Click all go back into your bank. Click
Slide 40
You’re going to recapture every dime for yourself. Click and it grows there Clicktax free. Click
Slide 41
Here’s what happens when you own your own bankClickAll that money goes back to your bank Clickinstead of their bank.
Slide 42
You’re going to earn Click triple compound interest. Click Interest on the money you paid into your bank Click also you will earn interest on the money you would have paid to other banks and Click you earn interest on that interest, all of which I find interesting.Click
Slide 43
Remember what was involved when you had to borrow money from the other bank?Click
Fill out the applicationClick
Submit financialsClick
Submit tax recordsClick
Commit collateralClick
Then we get to
Wait and wish
Wish and wonder
Wonder and worry Click
Basically, you and I have to prove we Click don’t need the money before they’ll loan it to us.
Are you happy about that? Click
Slide 44
But, what’s involved when you have to borrow money Click from your bank…..? Click
It’s really tough, you actually have to pick up the phone Click, you have to tell them how much you need, Click They cut you a check and you’ll have it in within 3 to 5 business days. Click
There is no qualifying, no lines , no worry because Click
Slide 45
It’s your money Clickin your bank and you can borrow it however and when ever you want.Click
If you want your money to come to you Taxable? Sure, sure you can do that. Click if you want it to be tax deferred, you can do that, every body is. Click but if you want your money to be available to you tax free Click the infinite banking concept is the only way you can regularly and dependably do that. Click
Slide 46
It’s almost an unfair comparison but Nelson loves to make this and so do I, Click you see if you miss a payment to the other banks Click they send out these folks. Do you recognize them? Nelson did some geneological research and looked at K9 ancestory, you don’t need them on your porch. Click
Slide 47
But if you missed the payments you make, not a problem, now you’re in control of your money, are you going to foreclose on yourself? I don’t think so.Click
Slide 48
Read all the words about Retirement. Click
Slide 49
Many of these concepts are new to you, they may seem confusing and complex but we want folks to relax. Click You don’t have to understand every single component of a car in order to Click
Slide 50
drive it, do we? Click
Slide 51
We teach how to Click Become Their Own Banker Click
Slide 52
Next time you make a payment, ask yourself Click Whose banking system do you want to build? ClickTheirs or Yours? Click
Slide 53
Understanding these principles will easily put a fortune back into your hands and will be available to you and grow for you Click tax free. Click
Slide 54
Likewise not understanding these principles will result in lost wealth, there is no way around it. CLick
Slide 55
So if you are open to the idea of learning how to Become Your Own Banker Click Would you be willing to invest 3 1/2 hours in yourself and $25 to learn how? Click
Slide 56
Before you and I could learn to drive this car we had to read this manual right, Click so before you can become your own banker you have to read this book. Click That is step one. Click
Slide 57
Step two - you will have phone access to a qualified advisor that will be able to answer any and every question that you have.Click