Nelson Nash said, “until people are aware of the money problems they face, they will not look for the solutions.”

Sadly, there are many problems people are not aware of, meaning they’re not looking for solutions. Why is this?  Perhaps this quote may shed some light on it.

“Five percent of the people think; ten percent of the people think they think; and the other eighty-five percent would rather die than think.” – Thomas A. Edison.

So, let’s take a quick look at the 13 problems people are not aware of – which I hope will lead you to rethink your thinking.


#1 Financing Costs

First up is that the Canadian household pays a shocking volume of interest to outside institutions every month. More specifically the interest owed to others eats up a surprisingly large percentage of their income. 

For the average person, 20% is spent on transportation, 30% is spent on housing, 45% is spent on “living” (clothes, groceries, contributions to religious and charitable causes, boat payments, casualty insurance on cars, vacations, etc.

Many of these items are financed by charge cards or bank notes. The balance is financed by paying cash for them—and thus, giving up interest that could be earned, otherwise – “opportunity cost lost”).

As a result, many are saving less than 5% of disposable income. But to be as generous as possible, let’s assume that people are saving 10% and spending only 40% on living expenses.

Overall, 34.5 cents of every disposable dollar paid out is interest, meaning there is a 3.45 to 1 ratio of interest paid out as compared to savings.

#2 Financing Outside Their Household

The 34.5 cents problem is further compounded with people financing this outside their household.

This problem is compounded yet again when most mortgages and car loans never reach maturity.

Many refinance their mortgage early which always results in extra interest being paid in penalties.

95% of the cars that are traded in are not paid for! This means, at the end of 30 months, if the car is traded, 21% of every payment dollar is interest. Even if the payer goes the full four years, the portion of every payment made is still 20%!

Despite this problem, if you will get this person together with their peers at a coffee break or some such gathering and have one of them suggest that they discuss financial matters, I can predict what they will talk about—getting a high rate of return on the portion they are saving! Meanwhile, every participant in the conversation is doing the above! What a tragedy! But that is how they have learned to conduct their financial affairs.

#3 Not Understanding Headwinds & Tailwinds

What they should be talking about are headwinds and tailwinds.

Nelson Nash in his book Becoming Your Own Banker, said the following.

“All of this reminds me of a phenomenon in the airplane world. I have been flying, as a pilot, since 1947, and I learned early on that you could not fly an airplane through a vacuum. It must go through an environment!

We have all seen the weather maps with the “HIGHs” and the “LOWs.” In the Northern Hemisphere the HIGHs turn clockwise. A large one can cover 75% or more of the U.S..

So, picture this situation: You are in Birmingham, AL with an airplane that can fly 100 miles per hour and your destination is Chicago. The only problem is that you have a headwind of 345 miles per hour! Regardless of what your airspeed indicator says, your airplane is moving toward Miami at 245 miles per hour!

If you want to go to Chicago, that’s a very good time to get your airplane on the ground—quickly! Have some patience and the air mass will move on—they always do. When the HIGH gets directly over the top of you there is no headwind. You are now covering the ground at 100 M.P.H..

And now, something called the “arrival syndrome” comes into play. More on this in a bit. You conclude that “you just can’t do any better than this. This is the ultimate situation.” Nonsense! Have more patience and the air mass will continue to move on. Now you have a tailwind of 345 M.P.H.! Plus your airplane is moving at a speed of 100 M.P.H.. Your ground speed is 445 M.P.H.! That is impressive, isn’t it? But, you see, it is much more impressive than most people think.

Everything you do in the financial world is compared with what everyone else is doing! Ninety-five percent of the American public is doing the equivalent of flying with a 345 M.P.H. headwind. If you have a 345 M.P.H. tailwind, the difference between you and them is twice the wind! That is a difference of 690 M.P.H.! Most people in this situation concentrate all their attention to trying to make the airplane go 105 M.P.H.!

Rethink Their Thinking

They would do well to spend their energy instead on controlling the environment in which they fly. You can’t do that in the airplane world—but you can in the financial world.

Canadians think about finances the wrong way and need to rethink their thinking. They need to control the “banking equation”. That’s what the book Becoming Your Own Banker is about – creating a perpetual “tailwind” to everything you do in the financial world. (There are many “financial experts” out there who are praising the matter of “getting out of debt” but they never address this fact). This is the unique message of The Infinite Banking Concept.

Somehow or another, it never dawns on most financial experts that you can control the financial environment in which you operate. Perhaps it is caused by lack of imagination, but whatever the cause, learning to control it is the most profitable thing that you can do over a lifetime.

This is the essence of what The Infinite Banking Concept is all about—recovering the interest that one normally pays to some banking institution and then lending it to others so that the policy owner makes what a banking institution does. It is like building an environment in the airplane world where you have a perpetual “tailwind” instead of a perpetual “headwind.” Simple, isn’t it? Controlling the environment is much more productive than trying to make the airplane fly 5 miles per hour faster!”

#4 Not Knowing How Banking Works_Bank Run - Blog Featured Image 2 - DO Financial

Another problem people have is they don’t know how banking works. People have been conditioned to put their money on deposit with a bank. When they do, they no longer the owner to that money – they are now a creditor of the bank. Since the bank is now owner of this money, they have the power to loan it out plus an unlimited amount of extra money they have the power to force the Bank of Canada to print (fractional reserve lending). In doing so they can earn 990% and even more on it.

#5 Contributing to Inflation

This fractional reserve lending creates inflation. What most people don’t realize is they contribute to inflation every time they make a deposit in a deposit-taking bank. 

#6 Not Doing What the Banks Do

Now that you know how banks work this opens your eyes to this problem – not doing what the banks do. People are unaware they can create their own banking system separate from the banks. Instead of the banks earning 900% and more profits on your money you could be earning profits on your own money. Further, your money will not contribute to inflation. More on this upcoming. Money that flows away from you fails to make you financially independent.

#7 Not Understanding The Government is Not Your Friend

Most people expect the government to find solutions to the problems government created. Is this not what Albert Einstein said was the definition of insanity – “doing the same thing over and over and expecting a different result.”

Lawmakers create a problem by spending money that they do not have which results in strangling taxation. And then they trick taxpayers by using deficit budget spending where they spend money by forcing the Bank of Canada to print more money supply. More money supply means each dollar is worth less – we call that inflation – which means inflation is taxation.

#8 Not Practicing the Golden Rule

The Golden Rule – Those who have the gold make the rules! Who gas the the gold? Well, that would be the banks. Who gave their gold to the banks?  You did by doing business with them. Until people stop doing business with the banks they will continue to have the gold.  

#9 Arrival Syndrome

The Arrival Syndrome where people think they know everything there is to know. In truth we don’t know what we don’t know.

This syndrome produces a “comfort zone” that causes people to lapse into their old way of doing things using a lifetime of accumulated information that determines how one conducts oneself.

“The problem in America isn’t so much what people don’t know; the problem is what people think they know that just ain’t so.” —WILL ROGERS

To escape the Arrival Syndrome people need to open to thinking outside the box – to rethink their thing.

#10 Using the Wrong Money Management System

Another problem is people use a bad money management system that makes them Debtors and Savers.

The Debtor doesn’t have any savings or resources and is forced into borrowing. They borrow the money against their future earnings, and work toward paying it off and getting back to zero.

The Debtor hopes to have finished paying back what they owe before another need arises. They spends their lives working to pay for what they have already spent plus interest.

The Saver, being well aware of the wealth transfers inherent in borrowing at interest, will postpone a purchase until they have saved enough to pay cash in full, up front.

However, at the same time they make a purchase they also consume their savings and move back toward that zero line.

The Wealth Creator utilizes a unique approach.

They also save, but when it is time to make a purchase, they use their savings as collateral to secure a loan, preferably at a lower interest rate than they are earning on their money.

Read more about Saver, Debtor, Wealth Creator, here.

#11 Not Being Financial Literate

Almost everything taught in the financial industry to advisors or consumers about money is wrong. Lets look a three examples.

  1. Compound interest is great advice. Warren Buffett says compound interest is an investors best friend. Albert Einstein says it’s the 8th wonder of the world. Money that fails to compound fails to make you financial independent. Despite this truth, the financial industry promotes stock market investing over compound interest because it generates a lot of revenue for financial institutions.
  2. Paying cash is not cheaper than financing.  The truth is paying cash is the same when you add all the growth that money would have earned for you had you not redeemed it.
  3. The financial industry tells you RRSPs are the best way to save for retirement. But they are not! The worst asset you can own is a tax-infected asset. Many are not aware you can pay up to 23x more in tax with RRSPs than the tax you paid. And when you need income from a RRSP you are forced to interrupt lifetime compound interest.
#12 Not Knowing What They Want

Studies show people want ALL of the following things that the financial industry is not providing them:

  • High Interest Savings
  • High Risk-Adjusted Return
  • Consistent Rate of Return
  • Conservative (Safe)
  • Liquid
  • Guarantees
  • Tax Benefits (Tax Free)
  • No Market Volatility
  • Yields Income in Addition to Capital Gains
  • Control
  • Easily Transferable
  • Easy to Manage
  • No Hidden Fees or Penalties
  • Reputable (legal)
  • Private
  • Low Fees
  • Preferred Creditor Protection
  • Does not contribute to inflation
  • Guaranteed Borrowing with no invasive credit check
#13 Not Knowing the Better Solution

At the beginning of this article, Nelson Nash said, “until people are aware of the problems, they will not look for the solutions.”

Since you were not aware of the above problems, its unlikely you were aware of the solution.

The solution is not new. It’s been around for over 200 years – and it works very well. Because its old some will think something old is not effective. New is always better, right? Well, my 40-years of experience and real-life examples, leads me to say old is better.

The only financial vehicle that does everything people want is specially designed high interest savings dividend-paying life insurance.

WATCH MORE HERE: IBC Part 1: PROBLEMS – A CPA’s Perspective | The Money Masters – The Rise Of The Bankers


Specially Designed High Interest Savings Dividend-Paying Life Insurance

If you’ve looked at life insurance before, this is unlike anything you’ve seen!

I’m fully aware of the stigma those with a conflict of interest have created – that life insurance is a terrible investment. Let’s stop there – life insurance is not an investment because it has no risk.

Despite that, many will be surprised to learn that life insurance savings returns after fees and taxes historically over the long term are very good – almost as good as stock market indexes after fees and taxes.

And because life insurance has no risk, that makes it the best risk-adjusted return in the world – significantly better than the stock market risk-adjusted returns.

That’s why banks are the largest owner of life insurance in the world. Its called BOLI (bank owned life insurance). Look it up.

Privatized Banking

While life insurance is the foundation, privatized banking is the how to use life insurance to become your own banker so people can retain the banking function in their lives. Nelson Nash calls this Infinite Banking.

CFP Endorsed

As a CFP (Certified Financial Planner), knowing what I now know about high interest savings life insurance, I am obligated to recommend it to clients where the fit is right.  For many the fit will be right.

WATCH MORE HERE: IBC Part 2: SOLUTION – A CPA’s Perspective | IBC Part 3: CASE STUDIES – A CPA’s Perspective | Paying cash vs IBC – A CPA’s Perspective | Is IBC a scam? A CPA’s perspective
Acceptance of Truth

According to Arthur Schopenhauer, all truth passes through three stages. First its ridiculed. Second, it is violently opposed. Lastly, it is accepted as self-evident.

Those with a conflict of interest have and will continue to ridicule and violently oppose life insurance. In time, it will be accepted as the perfect investment.

This said, its not an either-or decision. Life insurance and other financial vehicles can co-exist.

My Passion

My passion is to help people find more freedom in their lives. My 40-years of research and experience concludes that specially designed dividend-paying life insurance is the worlds best financial solution to problems people are not aware they have.

The wealthy have used life insurance for over 200-years and still do today. This list includes the Rockefellers, Ray Kroc, Walt Disney, Jim Pattison, Ted Rogers, US Presidents including Joe Biden, and the author of the book Becoming Your Own Banker, Nelson Nash.

Those who have read his book have said it illuminated problems they never saw before, and a solution they never knew was possible.

More and more doctors, dentists, professionals, business owners, white-collar, blue-collar are also doing this.


For those who are tired of doing the same thing and continually waiting for better results that don’t show up, let me encourage you to be open to rethink your thinking and do your own research. Then connect with us for a refreshingly different conversation.


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