Stay in Your Lane

That was the first thought that crossed my mind when CrossFit began promoting Blauer Tactical self defense.  CrossFit founder Greg Glassman is an industry-changing visionary in the realm of fitness but being clear sighted in one domain does not necessarily transfer to others and if there is an industry rifer with charlatans than fitness, it is self defense.

But it turned out Glassman was right again.  Despite having no background in self defence, he was able to identify the best self defence methodology around.  As a lifelong martial artist and former bouncer/security guard I brought some level of expertise to my assessment of the recommended system and despite my initial skepticism, I was impressed.  Within a year Leon and I would find ourselves flying to Virginia to train among police and military trainers, high end personal defense contractors and even UN security specialists.

I do not possess the genius or clarity of vision of Greg Glassman.  My domain of expertise is quite narrow.  I study exercise, nutrition and health.  I have spent a lifetime in the martial arts.  I enjoy consuming and creating speculative fiction.  I hold degrees in Anthropology and Education and have studied and practiced Unschooling.  And I’ve been engaged in a 17-year practicum of how to run a gym and a 27-year practicum on how to survive a marriage.  Outside these domains I’m doubtful I have much useful knowledge to share.  One area I consider myself particularly weak in is the subject of finance and wealth management. 

So, it is with some trepidation that I swerve out of my lane to offer information in this unfamiliar domain.  But our mission is Empowerment and while I believe that health and fitness should be priorities, there is no denying the Empowerment that comes with taking control of your finances. 

We fell upon this strategy dubbed “Infinite Banking” accidentally.  At no time did I set out to learn about finance or wealth management.  But in seeking mentorship to help us guide Empower to sustainable business practices, Leon and I found ourselves in the company of hundreds of successful gym owners many of whom had leveraged their success to branch out into other areas such as real estate investing, breweries or just buying up other gyms and expanding their brand.  To be honest, none of this appealed to me and most of the time I tuned out whenever the conversation veered away from best practices for running a successful gym and producing better results for members.

But over the past 5 years the topic of Infinite Banking continued to dominate conversations and produce more and more converts.  I wasn’t an immediate adopter of CrossFit either.  I tend toward skepticism and prefer to sit back and observe.  I want evidence.  Over time it became impossible to ignore the fact that these small business owners were producing outsized results through this unconventional financing method.  Still disinterested, I passed it off as something unique to the American system and probably not applicable in Canada. 

Because I wasn’t paying attention, I really didn’t understand what it was all about until someone recommended the audiobook “What Would the Rockefellers Do?”  I picked it up thinking it would be a history of the Rockefellers but instead discovered it was an outline of their strategy for protecting their wealth.  This audiobook laid out exactly how the Rockefeller family has managed to maintain intergenerational wealth to the present day where other wealthy families of their times like the Vanderbilts have failed to do so.  And there it was again: Infinite Banking.  Only this time, I listened to the details.  All of it aligning with the concept of Antifragility proposed by Nassim Nicholas Taleb author of such profound books as Fooled By Randomness, Black Swan, Antifragility and Skin in the Game.  It sounded too good to be true.

So, I next listened to the original book on the subject, “Become Your Own Banker.”  What I heard was very compelling so, I sat down to have a long, investigative discussion with Chat GPT.  The AI verified that not only is this a thing, but it is a thing in Canada though very few people know about it and fewer still understand it.  Maybe Chat GPT was feeling particularly obsequious that day because it told me I was making a very wise decision by pursuing this wealth management strategy.

To be clear, this is not an investment strategy.  It is a wealth protection strategy and a way of creating financial independence.  Here are the bullet points:

1) Your money earns interest at a higher rate of return than it does in your savings account
2) 90% of it remains liquid for your use at all times for any purpose
3) It continues to earn interest on the full amount even if you borrow against it
4) You pay it back on your own time or not at all
5) It is tax free provided you set it up in compliance with current CRA regulations
6) It is less subject to market volatility than RRSPs
7) You cannot lose this amount in a divorce, bankruptcy lawsuit or other calamity, it cannot be touched, it is guaranteed
8) This strategy is available for both personal and corporate applications

How it is used:
The business owners we know are using this to give themselves car loans, make downpayments on real estate or for business transactions.  Essentially, they have become their own bankers.  For independent business owners this is a boon because banks only want to lend us money when we don’t need it.  The minute we need a loan is the hardest time to get one.  Now, they have financing available whenever required and instead of paying the bank back, they repay themselves on their own terms.  And the interest on their balance continues to accrue as if the full balance were present even if they have actually borrowed 90% of it.

Too good to be true?  I certainly thought so.  But having done the research I’ve learned that this is precisely what financial institutions do with their own money.  Chat GPT provided me with a comprehensive list of questions with which to screen potential financial advisors.  There are only a very few in Canada who do this.  Through interviews I narrowed it down to two who operate locally, one of whom came highly recommended by a business owner I know.

The first emotion I felt was anger that no one had shared this information with me before.  Finances have not been easy for my family.  So, it made me upset that this information is not more widely disseminated.  It would have made such a difference for us and our struggles.  My next thought was that I need to share this information.  I do not know a lot about wealth or finance.  But I do know that feeling in control of your financial future is an Empowering feeling and that discovering this strategy reminded me of the Empowerment I felt when I first discovered the efficacy of CrossFit.  Here is a way to take charge and be in control of your financial future.    It could make a difference for you.  So, even though I know I am way out of my lane, I felt compelled to share it with you.

Because we believe this may be life changing for some people, we have invited the referred expert to speak at Empower and answer all the questions people might have.  Stephen Devlin of MacDev Financial will host a free seminar at Empower 2pm Saturday June 21st.  Because many of our members are business owners, I have asked Stephen to also share the corporate options as well as personal.   

Invite your friends, especially invite your kids as they are the ones with the most upside potential to benefit from this strategy.  We are capping the attendance so please register on Zen Planner to hold your spot. 

Here are some reading resources if you want to learn more on your own:
1) Becoming Your Own Banker – R. Nelson Nash
2) Antifragile – Nassim Nicholas Taleb
3) What Would the Rockefellers Do? – Garret Gunderson & Michael G. Isom

Please note: I do not view the above as a stand-alone strategy to replace other more commonly known financial instruments but as a hedge against Black Swan events and a leverage tool.  Later this summer we hope to host a second seminar on investing delivered by Empower’s resident expert on the subject.  Between these two speakers we hope to provide you a wealth of knowledge balanced across different viewpoints and strategic approaches.

Saturday Team WOD

Warm Up
2 rounds (1 min each):
A. GHD Hold
B. Kneeling Hip Hinge
C. V-Ups
D. RDL

Tech
Deadlift
GHD Sit Ups

Team WOD
In teams of 4:
5 Rounds:
2 mins Partners working one at a time Max Deadlifts
2 mins Partners working one at a time Max GHD Sit Ups

Partners A&B Start on DL, Partners C&D start at GHD switch roles every 2 mins
Score = total reps completed

Open Gym Solo Version:
10 min AMRAP
10 DL @185/275
20 GHD Sit Ups