74: Canada's $2T+ Growing Debt and It's Implications with 360° Wealth Strategies' Mike Sidhu

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Welcome back to the Colonial Real
Estate Podcast.

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I'm your mortgage broker host,
Taylor Atkinson.

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And I'm your real estate agent
host, Matt Glenn.

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What's happening today, Taylor?
Big news this week and last week,

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bond market has pretty much
tanked.

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Falling off a cliff.

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That means we're rock bottom

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interest rates, right?
Yeah, yeah, that's what everyone's

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saying.

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It's really good news.

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Yeah.

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I think it adds more confidence

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and a little bit of like maybe
media presence that people you

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are, hyping know, this But we were
up.

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talking a little bit of like maybe
media presence that people are,

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you know, hyping this up.

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But we were talking a little bit

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off air before this, just what
kind of what current rates are.

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So yes, we have seen like a large
decrease from a lot of lenders,

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but it's primarily on insured
mortgages.

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So that's less than 20% down, less
than a million dollars.

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You're paying for that CMHC or
Sajan insurance.

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So most lenders have been dropping
that like, you know, last week at

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the beginning of the week, we
could get a 4.79 on a five-year

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fixed.

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Now that's 4.69.

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So sounds great.

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But then when you actually talk

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about like the nuts and bolts of
it, it's not that big of a

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decrease.

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That's not to say we're not going

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to see that continue if the bond
market stays low, but generally

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lenders want to see the bond
market stabilize for a few days

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before they lower rates.

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Otherwise, you know, we'd be

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adjusting fixed rates like twice a
day.

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So let's see how this week plays
out.

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But essentially where this came
from is some data in the States,

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their unemployment rate has been
increasing substantially so much

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to the point that they're looking
at a recession potentially is the

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word that's getting thrown around
a lot.

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So essentially when that happens,
we're talking about like economic

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stimulus and that's generally when
we're lowering rates and our bond

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markets kind of piggyback off
their economy.

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So if that continues, we will see
lower rates.

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But I mean, only a few weeks ago,
the bond market took a jump up

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because, you know, we talked about
this before the Biden and Trump

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debate.

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So it's pretty volatile.

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But anyways, great news overall.

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Let's just see if we can keep it

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going for a while.

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So I have two different clients

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have reached out to me just as
totally anecdotal, but they're

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talking about changing.

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They're still in variable

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mortgages, which are like in the
sixes right now.

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Kind of like, what are they?
Mid sixes per variable, something

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like that.

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Yeah.

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It depends on the discount on
prime.

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Yeah.

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Yeah.

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So when they called their bank
before to lock into a fixed, at

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that point, the fixed rates were
almost the same or more expensive

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than a variable, right?
So like, this is ridiculous when

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their payments started going up,
but now they come down.

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So now there's like a huge, like
one and a half, one and three

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quarter point difference between a
fixed and a variable.

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So the reason why I bring this up
is because two different clients

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have told me that they did call
their bank to try and switch over

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into a fixed, but it didn't make
any sense.

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But maybe call again now.

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Well, I mean, is the bank going to

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be the bank going to be like, yes,
I'm going to save you money by

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doing this?
I don't know.

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I guess for me, maybe it's, you
know, I'm a little bit biased, but

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as a bank, do they have to be
fully transparent?

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No, they No, they don't.

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That's why I would say you should

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call them.

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Because what's funny is right when

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the interest rates got the highest
at the start, I got a call from

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Scotiabank and they're like, you
know, Matt, we know this is hard

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on everyone.

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Do you want to lock in your

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payment to a fixed rate?
I'm like, sure.

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Went from 6.8 to 7.1, but then I'd
lock it in for four years or five

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years.

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I'd have to up my payment and then

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stick at the highest possible
point.

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That's why you're calling me.

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So obviously, no, it's not in the

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bank's best interest to do that.

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That's why I'm saying people

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should call them and ask for
different options because there

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are lots of options.

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You just have to kind of find them

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yourself.

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Yeah.

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Maybe reach out to your Yeah.

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Maybe reach out to your broker,

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work with a broker.

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Yeah.

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Yeah.

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Reach out to Yeah.

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Yeah.

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Reach to Taylor.

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Small plug there.

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But yeah, certain lenders have

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more capital to deploy than others
at certain times.

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They'll do cashback promos or
slightly cheaper rates, and

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they'll maybe hedge the market on
a certain four year fixed instead

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of the five year.

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Like they have a lot of equations

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in the background that tell them
how competitive they can be in the

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market.

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But when an existing client calls

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and just says, Hey, I want to
switch my product internally,

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they've already kind of made their
money.

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They've locked you in.

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They know for you to leave the

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barrier to exit is going to be
legal fees and appraisals and a

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headache of paperwork and if you
can qualify.

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So they may not be the most
aggressive at that time.

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But anyways, I guess what we're
trying to summarize is it's good

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in the market, what's happening,
but it's also bad for people

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because- What you're suggesting is
like refinancing completely and

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going to another lender maybe?
you're suggesting is like

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refinancing completely and going
to another lender Yeah.

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And you don't have to refinance
completely.

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You can also just switch lenders.

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You can do a insured switch

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transfer.

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If you refi, you know, it voids

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the CMHC insurance.

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If it was an insured product, like

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there's lots of little reasons why
there's different specific rates

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on specific products and clients.

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But yeah, right now it's not a bad

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time to do a quick check in and
follow up.

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And if you are working with a
broker or you're an existing

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client of mine, we track what your
current rate was to what current

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rates are.

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And if there's an opportunity to

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save money, we reach out directly
and have that conversation.

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That's why you're the broker you
are, Taylor.

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Yeah.

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You got to kind of have that

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insurance for clients that it's
not just a transaction, but you

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also then have to incorporate the
penalties to break that mortgage.

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So let's just quickly go over what
are the penalties roughly?

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Yeah.

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Really tough question to

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summarize.

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Yeah.

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Here we go.

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Coming in hot.

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If it's a variable rate mortgage,
it's generally always three months

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of your interest payment.

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So if your interest payment on

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your mortgage is 2000 bucks a
month, it would be $6,000 to break

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that mortgage.

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If it's a fixed rate, it's usually

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calculated on an interest rate
differential.

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So, you know, if you're at 6% now
and you're going to break your

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mortgage and they're going to
redeploy that money at 3%, they're

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going to charge you basically the
difference of interest that

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they're going to lose by losing
you as a client, because now that

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bank has to relend the money at a
much lower rate.

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If rates go up and you break your
mortgage, it's generally always

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three-month interest again,
because banks don't care.

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They want to get their money back
and then redeploy it at that

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higher interest.

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So now is the really critical time

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to do that planning because when
rates are dropping, that's when

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your penalty is going to increase.

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And most of the big banks

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calculate it a bit more
aggressively that And is most of

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not the big banks beneficial
calculate it a bit more

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aggressively.

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to That clients.

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is not beneficial to clients.

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All the monoline lenders are

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generally, you know, much more
affordable on their penalty

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calculation, not using posted
rates.

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So yeah, things to know when
you're deciding on a term and a

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lender, like if you want a
three-year fix because you might

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break it, well, you might be
better off with a monoline lender

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that calculates it differently.

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we One other thing we kind of

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wanted to talk about was, you
know, the news about the bond

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market came out hot and heavy and
a lot of hype behind it, which is

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good, I guess, for our industry.

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But then when we're considering

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the difference of a 0.1 or a 0.2%
cut this week, it's really not

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life changing.

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I don't know.

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Some Some of the hype on social
media was not that good for any

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industry.

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It was just the sky is falling, of

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the hype on social media was not
that good for any industry it was

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just the sky is falling sky is
falling like sell sell sell on

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sunday night on twitter it was
pretty dark and then the next day

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it rebounded completely up so what
we're talking about is the stock

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market like is the stock market
like the stock market's crashing

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well it's down three percent which
is not a lot and then it's still

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up nine percent year over year so
it's like it's doing okay i mean

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yeah i think we're gonna see a lot
of this going into elections you

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know over the next that was next
point.

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I think a lot of it was election
fueled where they just want to get

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their political points in
regardless when anything a lot of

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it was fueled where they just want
to get their political points in

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regardless when anything happens.

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So So yeah.

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But yeah, anyways, our guest
today, Michael Sadu or Mike Sadu,

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interesting guy.

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He works in the life insurance,

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wealth planning type of product,
has some insight on where the

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government is.

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And we kind of dive into the debt

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clock and where things are moving
for Canada as a whole.

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So in terms of why is it crucial
to us to keep pumping out money as

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a government and building that
debt?

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Yeah.

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So pretty interesting show.

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Give him a follow on social media.

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He puts out some interesting

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content, but I think that's just
something that goes along with our

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intro is like, Hey, there is a lot
of hype behind some of these

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things that are interesting, but
if you zoom out a little bit,

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sometimes it's just like a blip in
the radar.

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So yeah, do your own research.

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Listening to the to the show is

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doing their own research.

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Listening to this show is doing

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their own research.

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Yeah.

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Yeah.

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Yeah.

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Yeah.

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Yeah.

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All right.

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In this like every episode

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episode, is sponsored by Century
21 Assurance best brokerage in the

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Realty, my opinion.

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Okanagan, I'm there.

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I love it.

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I think you'll love it too.

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to, to have you.

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00:07:47,856 --> 00:07:50,195
21, And if you're a buyer or

253
00:07:50,195 --> 00:07:51,720
seller looking for an call Century
21.

254
00:07:51,620 --> 00:07:53,360
agent, A lot of amazing agents
there to help you.

255
00:07:53,360 --> 00:07:54,440
there to help you.

256
00:07:54,540 --> 00:07:55,880
right Yeah, Enjoy the on.

257
00:07:55,880 --> 00:07:56,050
guys.

258
00:07:56,050 --> 00:07:56,772
show, Thank you.

259
00:07:56,672 --> 00:07:58,426
welcome to the Okay, Thanks Mike,
for joining show.

260
00:07:58,526 --> 00:07:59,275
How are you doing?
us.

261
00:07:59,275 --> 00:07:59,501
show.

262
00:07:59,501 --> 00:08:00,908
How are you doing?

263
00:08:00,908 --> 00:08:01,834
us. I'm doing I was just
fantastic.

264
00:08:01,834 --> 00:08:02,930
saying to you it's a little smoky
guys, here in Victoria today.

265
00:08:02,905 --> 00:08:13,219
Day of we've got a recording,
pretty big fire going on fairly

266
00:08:13,035 --> 00:08:13,235
close.

267
00:08:13,056 --> 00:08:13,340
It's funny that it's smoky in

268
00:08:13,170 --> 00:08:13,358
Victoria and not in Kelowna today.

269
00:08:13,316 --> 00:08:13,400
It's opposite day.

270
00:08:13,420 --> 00:08:13,400
Yeah.

271
00:08:14,000 --> 00:08:15,020
Jasper is on fire too.

272
00:08:15,780 --> 00:08:15,880
it seems Like, fire yeah, season's
here.

273
00:08:19,780 --> 00:08:20,182
We kind of like to start our show
with just connecting you to the

274
00:08:20,140 --> 00:08:20,190
listener.

275
00:08:20,152 --> 00:08:23,797
What's your perfect Friday look

276
00:08:23,752 --> 00:08:23,876
like in terms of work,
productivity, what gives you

277
00:08:23,846 --> 00:08:25,974
energy and then kind of leading
into the weekend for some fun?

278
00:08:25,939 --> 00:08:27,642
I'm pretty boring in terms of my
Friday.

279
00:08:27,500 --> 00:08:34,231
It looks like my Saturday looks
like my Tuesday looks like my

280
00:08:34,200 --> 00:08:34,360
Thursday, like every single day
I'm up at six, you know, there's

281
00:08:34,294 --> 00:08:39,004
the occasional day that I'll say,
yeah, no, I'm turning that sucker

282
00:08:38,825 --> 00:08:39,025
off.

283
00:08:38,827 --> 00:08:39,120
But every day up at six, and I get

284
00:08:39,030 --> 00:08:43,231
a few things prepared glass water
and a few energy vitamins and

285
00:08:43,197 --> 00:08:43,320
stuff to start the day.

286
00:08:46,500 --> 00:08:46,660
And then I'm usually going for a

287
00:08:46,597 --> 00:08:46,647
walk.

288
00:08:46,606 --> 00:08:47,720
I've got a treadmill here at the

289
00:08:47,900 --> 00:08:48,240
house.

290
00:08:50,100 --> 00:08:51,900
So I'm usually putting in an hour

291
00:08:51,760 --> 00:08:51,900
of walking.

292
00:08:51,795 --> 00:08:55,128
My health is very important to me

293
00:08:54,962 --> 00:08:55,248
because I'm a diabetic.

294
00:08:55,082 --> 00:08:55,328
I didn't choose my parents very

295
00:08:55,303 --> 00:08:55,380
well.

296
00:08:59,340 --> 00:08:59,959
So I'm a diabetic by default, but

297
00:08:59,945 --> 00:09:01,173
I find that for me, a good clean
diet and a good clean exercise

298
00:09:01,101 --> 00:09:01,560
regimen and usually walking is
fantastic.

299
00:09:01,487 --> 00:09:02,807
Walking will take my sugar down.

300
00:09:02,807 --> 00:09:04,365
Lifting weights will push it up.

301
00:09:04,365 --> 00:09:08,847
So I'll usually start with an hour
walk and I'll clear some things

302
00:09:08,847 --> 00:09:09,791
off my phone.

303
00:09:09,791 --> 00:09:11,426
I'm not doing email on my walk,

304
00:09:11,426 --> 00:09:14,389
but I am doing podcasting, TED
Talks, voice message system that I

305
00:09:14,489 --> 00:09:16,422
use, connecting with other
entrepreneurs and other advisors

306
00:09:16,322 --> 00:09:19,696
across the country from six to
seven, immediately a protein

307
00:09:19,696 --> 00:09:19,985
shake.

308
00:09:19,985 --> 00:09:22,447
And then I'll get into some

309
00:09:22,447 --> 00:09:22,628
weightlifting.

310
00:09:22,628 --> 00:09:25,262
My wife and I work out together.

311
00:09:25,262 --> 00:09:26,633
So we're doing that.

312
00:09:26,533 --> 00:09:28,143
Then I'm getting showered, getting

313
00:09:28,143 --> 00:09:30,722
ready for the day by about nine,
start blasting through emails,

314
00:09:30,722 --> 00:09:32,416
she's making breakfast or what
have you.

315
00:09:32,416 --> 00:09:35,290
We already have the day all
calendared out.

316
00:09:35,190 --> 00:09:37,039
Like I said, we're very
disciplined.

317
00:09:37,039 --> 00:09:39,139
So we meet once a week.

318
00:09:39,139 --> 00:09:41,026
We know exactly what's happening

319
00:09:41,026 --> 00:09:43,543
on both of our schedules for the
week.

320
00:09:43,543 --> 00:09:49,520
And Kate, you're going this way,
I'm going that way, or we're

321
00:09:49,740 --> 00:09:50,710
working together that day.

322
00:09:50,710 --> 00:09:53,060
But I'd like to say I look pretty

323
00:09:53,160 --> 00:09:54,649
good for 83 years old.

324
00:09:54,649 --> 00:09:55,800
So, you know, there's that.

325
00:09:55,800 --> 00:09:57,808
It resonates with, I guess, your
career, right?

326
00:09:57,808 --> 00:09:59,724
As a planner and an advisor.

327
00:09:59,624 --> 00:10:00,532
Yeah, actually, that's Yeah,

328
00:10:00,632 --> 00:10:04,512
actually, that's a really good
jumping off point because I

329
00:10:04,412 --> 00:10:08,566
believe that there's certain areas
of life, you're either going to

330
00:10:08,566 --> 00:10:12,277
have the pain of discipline or the
pain of regret is a saying that I

331
00:10:12,377 --> 00:10:13,281
really love.

332
00:10:13,281 --> 00:10:14,222
So that's true in financial

333
00:10:14,322 --> 00:10:15,921
matters, spiritual matters,
relationship matters, emotional,

334
00:10:15,821 --> 00:10:16,610
mental, and physical.

335
00:10:16,710 --> 00:10:18,299
So here's another saying that I

336
00:10:18,299 --> 00:10:21,487
love, an ounce of prevention is
worth a pound of cure.

337
00:10:21,487 --> 00:10:22,306
Gosh, mental, and physical.

338
00:10:22,206 --> 00:10:23,336
So here's another saying that I

339
00:10:23,336 --> 00:10:25,849
love, an ounce of prevention is
worth a pound of cure.

340
00:10:25,849 --> 00:10:28,358
Gosh, guys, you know, being in the
finance industry for so long, I

341
00:10:28,358 --> 00:10:30,578
see a lot of advisors that
struggle in the physical area.

342
00:10:30,670 --> 00:10:33,040
And because they struggle in the
physical area, they struggle in

343
00:10:33,140 --> 00:10:33,607
the mental area.

344
00:10:33,607 --> 00:10:34,400
Because they struggle in the

345
00:10:34,400 --> 00:10:35,760
mental area, their productivity
starts to slip.

346
00:10:35,860 --> 00:10:40,671
Then we can give more, do more
more and impact more the older we

347
00:10:40,671 --> 00:10:41,840
get, because we get really
effective.

348
00:10:41,940 --> 00:10:44,909
And we've stopped caring what
other people say and think about

349
00:10:44,909 --> 00:10:45,928
what we're doing.

350
00:10:45,928 --> 00:10:48,150
Or just like, no, this is the

351
00:10:48,150 --> 00:10:51,608
truth is I know, and I'm just
going to stand on this spot and

352
00:10:51,608 --> 00:10:52,045
deal it.

353
00:10:52,045 --> 00:10:53,501
Yeah, no, that's a good point.

354
00:10:53,501 --> 00:10:58,420
We've been talking about that, you
know, internally with some other

355
00:10:58,320 --> 00:11:03,332
groups, like, hey, what can you
prioritize right now in life?

356
00:11:03,277 --> 00:11:04,192
That's going to change and give
you a starting off point.

357
00:11:04,166 --> 00:11:05,735
And it always circles back to like
a good diet, good health, good

358
00:11:05,631 --> 00:11:05,994
sleep, just starting with the
basics.

359
00:11:05,992 --> 00:11:09,404
And then the rest of the stuff
will follow, but we get too caught

360
00:11:09,404 --> 00:11:10,712
up right now.

361
00:11:10,712 --> 00:11:12,020
And like, you know what, I'm just

362
00:11:12,020 --> 00:11:14,471
going to work on this for a little
bit more.

363
00:11:14,471 --> 00:11:17,841
I just need to get this one last
Aaron or, you know, file submitted

364
00:11:17,741 --> 00:11:18,515
or deal done.

365
00:11:18,515 --> 00:11:20,385
And it's just a snake eating its

366
00:11:20,385 --> 00:11:20,560
tail.

367
00:11:20,660 --> 00:11:22,135
One of the most successful

368
00:11:22,235 --> 00:11:25,460
entrepreneurs that I know says,
don't focus on that one area.

369
00:11:25,560 --> 00:11:28,231
He says a rising tide will raise
all ships.

370
00:11:28,231 --> 00:11:31,835
So if you think about a harbor,
and if you've got all these little

371
00:11:31,835 --> 00:11:33,970
boats in the harbor that are
different areas of your life, why

372
00:11:33,970 --> 00:11:37,140
don't you just change the tide?
You must have a must have a

373
00:11:37,140 --> 00:11:38,262
quality meme social media page.

374
00:11:38,162 --> 00:11:39,721
Just writing all these down.

375
00:11:39,621 --> 00:11:41,080
I'm like, this is perfect.

376
00:11:41,080 --> 00:11:42,340
Yeah, these are good quotes.

377
00:11:42,335 --> 00:11:44,917
I mean, the rise and die is one of
my favorites for sure.

378
00:11:44,917 --> 00:11:45,117
sure.

379
00:11:45,112 --> 00:11:45,697
I love it.

380
00:11:45,697 --> 00:11:46,379
For your business then.

381
00:11:46,379 --> 00:11:47,500
Are you all across Canada?

382
00:11:47,500 --> 00:11:48,996
You're based out of Victoria.

383
00:11:48,896 --> 00:11:50,824
What's kind of your client base?

384
00:11:50,924 --> 00:11:53,395
And what are you passionate about
in terms of like providing to

385
00:11:53,395 --> 00:11:55,110
clients, managing portfolio, life
insurance, that kind of that kind

386
00:11:55,010 --> 00:11:55,357
of stuff?
Yeah.

387
00:11:55,453 --> 00:11:57,744
So I'm coming up very close to my
30th year in the finance industry

388
00:11:57,644 --> 00:11:58,326
because I'm 83, of course.

389
00:11:58,326 --> 00:11:59,640
I started when I was 53, right?

390
00:11:59,640 --> 00:11:59,912
Yeah.

391
00:11:59,912 --> 00:12:01,748
Half kind of went all course.

392
00:12:01,748 --> 00:12:04,076
I went all over, right?
I did foreign exchange.

393
00:12:04,076 --> 00:12:08,155
I worked the banking floors of
mortgage lender, commercial and

394
00:12:08,155 --> 00:12:09,836
residential mortgages for a while.

395
00:12:09,736 --> 00:12:12,047
And then in 2007, I saw kind of

396
00:12:12,147 --> 00:12:13,665
the corporate ladder getting
squishy up at the top.

397
00:12:13,565 --> 00:12:15,720
So I decided to deviate and went
into full time financial planning.

398
00:12:15,720 --> 00:12:17,315
I had already had my securities
license since 2002.

399
00:12:17,315 --> 00:12:19,243
So I had been doing a lot of
mutual funds investments and

400
00:12:19,243 --> 00:12:26,880
things of that nature for five
years and then I decided to focus

401
00:12:26,980 --> 00:12:29,407
on stuff that nobody else was
doing I was really trying to find

402
00:12:29,307 --> 00:12:31,300
a niche that nobody else was
paying attention to and that was

403
00:12:31,044 --> 00:12:34,400
estate planning succession
planning and life insurance it's a

404
00:12:34,600 --> 00:12:37,100
very open space in my opinion
because it's an underserved market

405
00:12:37,320 --> 00:12:39,029
in 2015 I started my own firm.

406
00:12:39,029 --> 00:12:41,624
My wife and I just kind of held

407
00:12:41,624 --> 00:12:46,586
hands and kind of jumped off the
cliff together and decided that

408
00:12:45,823 --> 00:12:47,578
that's what we're going to do.

409
00:12:47,578 --> 00:12:49,105
I've really focused on business

410
00:12:49,105 --> 00:12:51,548
owners, high income professionals,
real estate investors, and solving

411
00:12:51,548 --> 00:12:53,594
problems, making complex financial
issues simplified.

412
00:12:53,494 --> 00:12:54,798
If it's simple, it's clear.

413
00:12:54,898 --> 00:12:56,592
And if it's clear, it's

414
00:12:56,592 --> 00:12:56,755
repeatable.

415
00:12:56,755 --> 00:12:57,834
Your client is going to have a

416
00:12:57,734 --> 00:13:02,097
good sense of, okay, I understand
this and I'm going to move forward

417
00:13:02,197 --> 00:13:03,301
with it.

418
00:13:03,301 --> 00:13:05,144
But that takes time.

419
00:13:05,144 --> 00:13:09,677
It takes time for me to, and my
investment is into the client and

420
00:13:09,677 --> 00:13:12,402
their financial understanding and
understanding of how to reach

421
00:13:12,402 --> 00:13:14,102
financial sovereignty more
quickly, more efficiently,

422
00:13:14,102 --> 00:13:16,771
focusing on tax minimization,
control, growing, and compounding

423
00:13:16,771 --> 00:13:21,669
what you are working hard for are
kind of my passion, so to speak.

424
00:13:21,669 --> 00:13:23,899
So that's what I focus on.

425
00:13:23,899 --> 00:13:25,460
Yeah, I'm pretty passionate about

426
00:13:25,460 --> 00:13:28,480
life insurance as Yeah, I'm pretty
passionate about life insurance as

427
00:13:28,480 --> 00:13:30,228
well, even like whole life
insurance.

428
00:13:30,228 --> 00:13:32,026
I think there's a lot of benefit
there.

429
00:13:32,026 --> 00:13:35,483
But it almost feels like people
only start thinking about that

430
00:13:35,483 --> 00:13:38,563
when they're a little bit too old.

431
00:13:38,563 --> 00:13:40,654
I don't want to say too old

432
00:13:40,654 --> 00:13:44,070
because you're probably saying
it's never too old.

433
00:13:44,070 --> 00:13:47,964
But like how much more impactful
would it be if people look at this

434
00:13:47,964 --> 00:13:49,734
for their children or, you know,
even as young adults?

435
00:13:49,734 --> 00:13:52,429
Is that part of your role as well
to educate them?

436
00:13:52,529 --> 00:13:54,537
Like, hey, this is a really good
product.

437
00:13:54,437 --> 00:14:00,439
But if we started 40 years ago, it
would be a substantial difference.

438
00:14:00,439 --> 00:14:02,971
it would be a substantial
difference.

439
00:14:02,871 --> 00:14:05,625
You know, that's an excellent
point because the power of

440
00:14:05,625 --> 00:14:07,847
compounding, which Einstein said
was the eighth wonder of the

441
00:14:07,847 --> 00:14:08,178
world.

442
00:14:08,078 --> 00:14:09,802
The secret of compounding is time.

443
00:14:09,802 --> 00:14:13,024
And most people break the cycle of
compounding when it's the most

444
00:14:13,024 --> 00:14:13,322
effective.

445
00:14:13,322 --> 00:14:15,180
If we pay attention to the power

446
00:14:15,180 --> 00:14:18,836
of long-term compounding, if you
can think longer term, you won't

447
00:14:18,836 --> 00:14:23,946
be sideswiped by the matters of
urgency that seem to pop up from

448
00:14:24,046 --> 00:14:29,392
time to time, no matter what area
of life that is.

449
00:14:29,392 --> 00:14:32,560
For kids, as an example, if we're
using a whole life insurance

450
00:14:32,560 --> 00:14:35,554
contract as a way to store and
save our capital for our future

451
00:14:33,343 --> 00:14:36,739
use, gosh, this is the way I
started is I put policies on my

452
00:14:36,839 --> 00:14:38,352
kids before I put policies on
myself.

453
00:14:38,352 --> 00:14:40,205
I'm the same as same as you.

454
00:14:40,205 --> 00:14:41,773
I did the same, Mike.

455
00:14:41,773 --> 00:14:44,750
I got them for my kids and kind of
threw it away on me because you

456
00:14:44,750 --> 00:14:46,861
start to see more benefits on your
kids.

457
00:14:46,861 --> 00:14:49,687
Where we are as a society is like
instant gratification.

458
00:14:49,687 --> 00:14:53,209
Like I want to see the end result
now to make the sacrifice for the

459
00:14:53,209 --> 00:14:54,865
generational wealth is sometimes
hard to do.

460
00:14:54,865 --> 00:14:54,970
Yeah.

461
00:14:54,970 --> 00:14:56,178
So what benefits are So what

462
00:14:56,178 --> 00:14:58,374
benefits are there for a kid to
have whole life insurance?

463
00:14:58,374 --> 00:15:00,633
Well, number one is the gift of
insurance, right?

464
00:15:00,633 --> 00:15:00,866
Merry Christmas.

465
00:15:00,866 --> 00:15:06,271
Yeah, Merry Christmas.

466
00:15:06,271 --> 00:15:07,837
You've got a life insurance policy
for your children.

467
00:15:07,837 --> 00:15:08,763
So we're talking about
intergenerational wealth.

468
00:15:08,763 --> 00:15:10,685
For example, I'm setting up my yet
to be conceived great

469
00:15:10,685 --> 00:15:11,468
grandchildren or grandchildren or
great, great grandchildren.

470
00:15:11,468 --> 00:15:12,465
I'm thinking legacy.

471
00:15:12,365 --> 00:15:13,663
I'm thinking, okay, futures.

472
00:15:13,663 --> 00:15:18,562
That's the number one value or
benefit is if one of my kids has,

473
00:15:18,562 --> 00:15:24,200
God forbid, an addiction issue in
their future or a health issue in

474
00:15:24,280 --> 00:15:26,022
their future, there's a future
insurability.

475
00:15:26,022 --> 00:15:29,316
The second part is that they can
use the capital that I have set

476
00:15:29,216 --> 00:15:32,210
aside out of my after-tax income,
and that's been growing on a

477
00:15:32,210 --> 00:15:33,140
compounding basis.

478
00:15:33,040 --> 00:15:33,621
It's safe.

479
00:15:33,621 --> 00:15:38,070
I use it because I own the
policies, but at some point in the

480
00:15:38,070 --> 00:15:42,121
future, I can gift that policy as
a tax-exempt transfer under the

481
00:15:42,121 --> 00:15:43,991
rules of the Income Tax Act.

482
00:15:43,991 --> 00:15:45,229
I can transfer that policy to

483
00:15:45,229 --> 00:15:47,560
them, and they can assume both the
cash value and any debt associated

484
00:15:47,560 --> 00:15:48,603
with it at the time.

485
00:15:48,603 --> 00:15:50,260
But I'm going to use and it, I'm

486
00:15:50,260 --> 00:15:52,699
going to use it and I'm going to
use it to invest.

487
00:15:52,699 --> 00:15:55,269
I may have business expenses that
I want to pay in my sole

488
00:15:55,369 --> 00:15:56,198
proprietorship.

489
00:15:56,098 --> 00:15:57,282
My intention is to gift that to

490
00:15:57,282 --> 00:16:02,038
the kids with a lot of money in it
over time as a future, hey, don't

491
00:16:02,038 --> 00:16:03,259
worry about your retirement.

492
00:16:03,259 --> 00:16:02,703
I got this.

493
00:16:02,702 --> 00:16:06,029
With the prices of food, gas and
housing, how are they going to

494
00:16:05,929 --> 00:16:07,728
address retirement?
I think another one that resonates

495
00:16:07,628 --> 00:16:11,718
for Matt and I for real estate is
you can leverage some of the

496
00:16:11,718 --> 00:16:16,037
policies as collateral to be
approved for I think another one

497
00:16:15,937 --> 00:16:20,515
that resonates for Matt and I for
real estate is you can leverage

498
00:16:20,515 --> 00:16:25,620
some of the policies as collateral
to be approved for lending

499
00:16:25,780 --> 00:16:26,294
facilitation.

500
00:16:26,194 --> 00:16:28,379
So if your kid's going to buy a

501
00:16:28,379 --> 00:16:31,648
place in 20 years from now when
they're 20, 25 years old, it's a

502
00:16:31,648 --> 00:16:34,479
really good product to have as a
net worth requirement.

503
00:16:34,479 --> 00:16:38,534
But something I really wanted to
talk to you about today was what

504
00:16:38,534 --> 00:16:42,080
you just mentioned is inflation,
the cost of goods going up, you

505
00:16:42,080 --> 00:16:45,168
know, being a millionaire is not
being a millionaire.

506
00:16:45,068 --> 00:16:47,680
Can we talk about Canada's growing
debt, the debt clock?

507
00:16:47,780 --> 00:16:50,060
What does it mean?
What are the implications?

508
00:16:50,160 --> 00:16:54,340
It's a long conversation, but can
you try and summarize it for us?

509
00:16:54,340 --> 00:16:55,509
Yeah, we're we're screwed.

510
00:16:55,509 --> 00:16:57,628
I'll just post a question to both

511
00:16:57,628 --> 00:16:58,140
of you.

512
00:16:58,680 --> 00:17:00,293
In your life, how would you

513
00:17:00,293 --> 00:17:03,659
describe your net worth and debt?
Net worth is like all your assets

514
00:17:03,659 --> 00:17:04,270
minus your liabilities.

515
00:17:04,269 --> 00:17:04,805
is like all your assets minus your

516
00:17:04,805 --> 00:17:04,855
liabilities.

517
00:17:04,854 --> 00:17:05,362
Debt is basically spending

518
00:17:05,362 --> 00:17:05,723
tomorrow's funds today.

519
00:17:05,824 --> 00:17:06,185
Yeah.

520
00:17:06,086 --> 00:17:08,154
Your debt is your liabilities on
your financial Your debt is your

521
00:17:08,154 --> 00:17:11,493
liabilities on your financial
statement, on your balance sheet.

522
00:17:11,493 --> 00:17:14,685
So if a person had, say, a
principal residence and they had

523
00:17:14,685 --> 00:17:19,068
two or three other properties and
then maybe had half a million

524
00:17:18,968 --> 00:17:20,762
dollars in market securities,
gross net worth could be 10

525
00:17:20,762 --> 00:17:21,380
million bucks.

526
00:17:21,380 --> 00:17:23,509
And let's just say against that 10

527
00:17:23,509 --> 00:17:25,942
million dollar net worth, they had
four million dollar debt because

528
00:17:25,942 --> 00:17:27,949
they had leverage to get into
their real estate.

529
00:17:27,949 --> 00:17:23,569
So what would their net worth be?
10 minus four is?

530
00:17:23,569 --> 00:17:26,367
6. So we would say that my net
worth is $6 million.

531
00:17:26,367 --> 00:17:30,182
So the way that the government
does it, what do they say the debt

532
00:17:30,182 --> 00:17:34,149
is at right now?
About $1.3, $1.4 trillion, right?

533
00:17:34,149 --> 00:17:35,550
1.37 or something is the actual
number.

534
00:17:35,550 --> 00:17:36,810
But that's not the debt.

535
00:17:36,810 --> 00:17:38,000
That's the net worth.

536
00:17:38,100 --> 00:17:39,820
The actual debt is $2.01 trillion.

537
00:17:39,820 --> 00:17:41,667
And they have assets of $650 to

538
00:17:41,567 --> 00:17:43,932
$700 billion, which means their
net worth is minus $1.3 trillion.

539
00:17:43,932 --> 00:17:47,170
And when you put it in that
context, because words are

540
00:17:47,170 --> 00:17:49,137
important, euphemisms are really
where you find truth.

541
00:17:49,137 --> 00:17:52,212
It's not the debt, it's the net
worth of the country.

542
00:17:52,212 --> 00:17:56,239
And so my big concern is, is that
we're talking about a word that

543
00:17:56,239 --> 00:17:58,639
doesn't make sense because we
don't understand it.

544
00:17:58,639 --> 00:18:01,948
So therefore we have no, oh, well,
we've got lots of things in this

545
00:18:01,948 --> 00:18:03,735
country and therefore we're going
to be okay.

546
00:18:03,835 --> 00:18:05,022
Yeah, but it's 2 trillion.

547
00:18:05,022 --> 00:18:07,048
It's more than 2 trillion.

548
00:18:07,048 --> 00:18:09,828
Our gross debt's about the same as
our GDP.

549
00:18:09,828 --> 00:18:09,828
Our net worth is about 55% of our
GDP.

550
00:18:09,828 --> 00:18:17,249
Now, you guys would go to jail if
you had that kind of financial

551
00:18:17,149 --> 00:18:17,473
statement.

552
00:18:17,473 --> 00:18:20,275
I kind of feel like we're like

553
00:18:17,149 --> 00:18:21,846
Wile E. Coyote running off the
edge of the cliff when the road

554
00:18:21,946 --> 00:18:23,622
goes around the mountain and
you're going straight off.

555
00:18:23,622 --> 00:18:25,845
that's where I feel that we are.

556
00:18:25,845 --> 00:18:27,263
And we're somehow numbing our

557
00:18:27,263 --> 00:18:27,946
brain to the reality.

558
00:18:27,946 --> 00:18:30,306
I have serious concerns with the

559
00:18:30,306 --> 00:18:31,416
sovereign debt in this country.

560
00:18:31,416 --> 00:18:32,460
So that's Canada.

561
00:18:32,460 --> 00:18:34,940
Is there any countries that are
doing it better?

562
00:18:34,940 --> 00:18:38,140
But doesn't the US have like
something like double the debt to

563
00:18:38,140 --> 00:18:41,334
GDP ratio than Canada?
It's not not quite that bad, but

564
00:18:41,334 --> 00:18:41,994
it's bad.

565
00:18:41,994 --> 00:18:43,561
This is a nonpartisan issue.

566
00:18:43,561 --> 00:18:44,962
I'm not throwing anybody under the
bus.

567
00:18:44,962 --> 00:18:48,343
I'm just saying that this is every
political party has an excuse to

568
00:18:48,343 --> 00:18:49,845
stimulate the economy.

569
00:18:49,745 --> 00:18:51,798
From the books that I read, I

570
00:18:51,798 --> 00:18:54,232
would question the validity of
that thinking.

571
00:18:54,332 --> 00:19:00,773
Do governments need to step in?
And I would say no, because every

572
00:19:00,773 --> 00:19:05,159
time a government acts, it
prevents a entrepreneur from

573
00:19:05,159 --> 00:19:10,799
acting in the same because they're
not going to compete against an

574
00:19:10,799 --> 00:19:12,668
unlimited well of money.

575
00:19:12,668 --> 00:19:13,808
What are the consequences?

576
00:19:13,808 --> 00:19:17,825
Like, what's the downside in terms
of like, when is it going to

577
00:19:17,825 --> 00:19:20,180
implode?
How much debt or negative net

578
00:19:20,180 --> 00:19:23,582
worth can we continue to go?
I don't know if it's correlated to

579
00:19:23,582 --> 00:19:23,937
say hyperinflation.

580
00:19:24,037 --> 00:19:25,708
And we're like, OK, our fiat

581
00:19:25,707 --> 00:19:26,357
currency is gone.

582
00:19:26,357 --> 00:19:28,539
I don't know if it's correlated to

583
00:19:28,539 --> 00:19:32,583
say hyperinflation and we're like,
okay, our fiat currency is gone.

584
00:19:32,583 --> 00:19:35,439
We have to completely restart our
financial institutes or does this

585
00:19:35,439 --> 00:19:38,883
just go on perpetually?
Yeah, I think the book, The

586
00:19:38,883 --> 00:19:42,340
Deficit Myth by Stephanie Kelton,
who was the financial advisor for

587
00:19:42,340 --> 00:19:45,362
Bernie Sanders' campaign, which
said deficits are good and the

588
00:19:45,262 --> 00:19:46,180
government can spend.

589
00:19:46,180 --> 00:19:47,717
She was a modern monetary

590
00:19:47,817 --> 00:19:48,227
theorist.

591
00:19:48,227 --> 00:19:50,178
MMT, which basically said we could

592
00:19:50,178 --> 00:19:52,433
just have as much as we want.

593
00:19:52,433 --> 00:19:55,556
There's not going to be an effect.

594
00:19:55,556 --> 00:19:58,691
And there have been situations
where stimulus has not had a

595
00:19:58,691 --> 00:20:00,180
direct or immediate impact on
inflation.

596
00:20:00,180 --> 00:20:03,838
But I think that we have seen the
issue not being debt.

597
00:20:03,838 --> 00:20:05,731
It's who finances the debt,
whether stimulus is inflationary

598
00:20:05,731 --> 00:20:06,362
or not.

599
00:20:06,362 --> 00:20:07,812
So for example, if the government

600
00:20:07,812 --> 00:20:11,130
sells bonds in the open market,
and there's a lot of institutional

601
00:20:11,230 --> 00:20:13,147
investors, there's a lot of
private investors that would throw

602
00:20:13,147 --> 00:20:16,550
10, 30, 50, 150, $200 million to
purchase a bond issuance from the

603
00:20:16,550 --> 00:20:16,661
government.

604
00:20:16,661 --> 00:20:18,247
So if you're taking existing money

605
00:20:18,021 --> 00:20:21,959
and buying new debt with that
money, and then that money goes to

606
00:20:21,859 --> 00:20:24,869
funnel and cycle through the
economy, that's stimulating it in

607
00:20:24,869 --> 00:20:27,978
a way that the government wants to
stimulate.

608
00:20:27,978 --> 00:20:31,369
What's the alternative?
Well, that $200 million could have

609
00:20:31,369 --> 00:20:34,819
been used to purchase other bonds,
securities, where those companies

610
00:20:34,819 --> 00:20:39,131
would have stimulated the economy
in a certain way.

611
00:20:39,131 --> 00:20:42,193
I saw a really funny meme, and
government starts a toilet paper

612
00:20:42,193 --> 00:20:43,367
butt wiping campaign.

613
00:20:43,367 --> 00:20:45,645
And then five years later, people

614
00:20:45,645 --> 00:20:48,752
would say, without the government,
who would wipe our ass?

615
00:20:48,752 --> 00:20:51,076
It's this mentality that
government is inevitable or

616
00:20:51,076 --> 00:20:51,185
required.

617
00:20:51,185 --> 00:20:53,600
And I would say no. Now, that's

618
00:20:53,600 --> 00:20:54,120
non-inflationary debt.

619
00:20:54,020 --> 00:20:55,400
What is inflationary debt is when

620
00:20:55,480 --> 00:20:59,468
the Bank of Canada creates new
reserves and the Bank of Canada

621
00:20:59,468 --> 00:21:00,253
then purchases the government
bonds.

622
00:21:00,253 --> 00:21:01,177
So that's new money.

623
00:21:01,177 --> 00:21:03,181
That's new reserves going on to

624
00:21:03,081 --> 00:21:03,926
the commercial banks.

625
00:21:03,926 --> 00:21:04,581
Commercial banks, as everybody

626
00:21:04,581 --> 00:21:07,158
knows, can have an unlimited
amount of loans on top of that.

627
00:21:07,058 --> 00:21:08,301
And that's what stimulates and
inflates the economy.

628
00:21:08,275 --> 00:21:10,056
Now, with new reserves is new
money.

629
00:21:10,056 --> 00:21:10,691
and inflates the economy.

630
00:21:10,665 --> 00:21:12,480
Now, with new reserves is new

631
00:21:12,480 --> 00:21:12,682
money.

632
00:21:12,782 --> 00:21:14,699
With new money, it devalues each

633
00:21:14,799 --> 00:21:15,270
dollar.

634
00:21:15,170 --> 00:21:17,457
And so we see that as price

635
00:21:17,457 --> 00:21:17,995
inflation.

636
00:21:17,995 --> 00:21:20,630
But Ludwig von Mises said almost

637
00:21:20,630 --> 00:21:23,984
100 years ago now, most people
cannot define what inflation is.

638
00:21:23,984 --> 00:21:28,554
They see it as price inflation,
but that's only the symptom of the

639
00:21:28,554 --> 00:21:28,642
problem.

640
00:21:28,742 --> 00:21:29,694
The real problem is the creation

641
00:21:29,694 --> 00:21:31,749
of new money that goes into an
economy.

642
00:21:31,750 --> 00:21:35,096
You have to exchange more dollars
to purchase the same goods.

643
00:21:35,096 --> 00:21:38,825
So we see that as price inflation,
but it's a supply and demand

644
00:21:38,825 --> 00:21:39,253
issue.

645
00:21:39,352 --> 00:21:41,219
Economics 101 is supply and

646
00:21:41,319 --> 00:21:41,746
demand.

647
00:21:41,646 --> 00:21:44,778
The more you have a supply of

648
00:21:44,778 --> 00:21:48,072
something and the equal demand of
something, then prices will drop.

649
00:21:48,172 --> 00:21:52,749
And so when people don't want to
hold on to money, they spend it.

650
00:21:52,749 --> 00:21:53,859
That's inflationary.

651
00:21:53,859 --> 00:21:56,163
Does it also not matter where the

652
00:21:56,163 --> 00:21:59,958
debt is coming from?
I believe it was in the 70s,

653
00:21:59,958 --> 00:22:03,450
Pierre-Élis Trudeau, they decided
not to take loans from the Bank of

654
00:22:03,550 --> 00:22:03,961
Canada.

655
00:22:03,861 --> 00:22:05,984
Prior to that, there was a lot of

656
00:22:05,984 --> 00:22:09,066
interest-free loans from the Bank
of Canada to build infrastructure,

657
00:22:09,066 --> 00:22:10,436
schools, hospitals, highways, etc.

658
00:22:10,436 --> 00:22:12,700
And then we've switched from that

659
00:22:13,160 --> 00:22:14,853
to taking international money at
an interest.

660
00:22:14,853 --> 00:22:17,636
Two part question, why would they
ever do that?

661
00:22:17,636 --> 00:22:20,480
Since they've done that, we've
seen our debt accumulate much

662
00:22:20,480 --> 00:22:20,913
faster.

663
00:22:20,913 --> 00:22:21,997
We've seen much more difficult

664
00:22:21,997 --> 00:22:22,986
times with inflation.

665
00:22:22,986 --> 00:22:26,494
Why would we not try and rejig a

666
00:22:26,394 --> 00:22:30,848
little bit to go back to something
that was working prior to the 70s?

667
00:22:30,848 --> 00:22:33,862
Yeah, it's monetary policy it's
monetary policy and it's fiscal

668
00:22:33,862 --> 00:22:34,547
policy.

669
00:22:34,547 --> 00:22:36,104
So fiscal policy is government

670
00:22:36,104 --> 00:22:36,339
spending.

671
00:22:36,439 --> 00:22:39,100
Monetary policy is central bank

672
00:22:39,000 --> 00:22:39,314
policy.

673
00:22:39,314 --> 00:22:41,427
We had a really great system.

674
00:22:41,427 --> 00:22:43,933
It worked marginally from 1944 to
1971.

675
00:22:43,933 --> 00:22:48,160
And in 1971, when Nixon took the
gold standard off, we created a

676
00:22:48,160 --> 00:22:48,770
fiat system.

677
00:22:48,670 --> 00:22:50,143
Now, that fiat system said that

678
00:22:50,143 --> 00:22:55,472
the only thing giving value to
money is what the government says

679
00:22:55,472 --> 00:22:56,926
it's valued at.

680
00:22:56,926 --> 00:22:59,107
And because we put the pictures of

681
00:22:59,107 --> 00:23:01,370
the queen, everybody loves the
queen.

682
00:23:01,470 --> 00:23:03,955
So gosh, that's got to be worth
something.

683
00:23:03,955 --> 00:23:07,722
It's got to have some value in it.

684
00:23:07,722 --> 00:23:08,889
So it's going to be interesting.

685
00:23:08,989 --> 00:23:10,326
Are we going to have Charlie Bucks
coming?

686
00:23:10,326 --> 00:23:11,594
We should have Uncle Bucks coming.

687
00:23:11,494 --> 00:23:12,033
Uncle Bucks, yeah.

688
00:23:12,033 --> 00:23:15,146
I would much rather have John
Candy on my money than King

689
00:23:15,146 --> 00:23:16,751
Charles, let's be honest.

690
00:23:16,751 --> 00:23:17,313
Yeah, me too.

691
00:23:17,313 --> 00:23:21,476
So money at interest or money at
no interest, it doesn't matter.

692
00:23:21,476 --> 00:23:24,277
It's new money, right?
It's the creation of more reserves

693
00:23:24,277 --> 00:23:25,014
at the bank.

694
00:23:25,114 --> 00:23:27,049
If you take existing money and

695
00:23:27,049 --> 00:23:28,178
purchase bonds, it's
non-inflationary.

696
00:23:28,178 --> 00:23:31,825
If you take money at zero rate of
interest or 10% rate of interest,

697
00:23:31,825 --> 00:23:33,515
it does not matter.

698
00:23:33,415 --> 00:23:35,912
The issue, of course, now, and we

699
00:23:35,912 --> 00:23:39,430
just saw this come out in the
federal budget, was our debt

700
00:23:39,430 --> 00:23:42,901
interest payments because they had
to provide an incentive for people

701
00:23:42,901 --> 00:23:43,902
to purchase the debt.

702
00:23:43,902 --> 00:23:45,171
And that incentive was, we're

703
00:23:45,271 --> 00:23:48,123
going to give you a future
exchange value.

704
00:23:48,123 --> 00:23:52,281
Because if I had the choice
between buying a 5% bond and a 0%

705
00:23:52,281 --> 00:23:56,716
bond, the Bank of Canada, if they
issue a zero interest debt, can't

706
00:23:56,716 --> 00:23:59,908
dump it in have it in the open
market because nobody's taking it.

707
00:23:59,908 --> 00:24:02,200
So think of the way that the money
flows.

708
00:24:02,900 --> 00:24:05,198
Money always finds a return.

709
00:24:05,198 --> 00:24:07,647
In 1974, the Bank of Canada really

710
00:24:07,647 --> 00:24:10,487
started adopting international
central banking policy through the

711
00:24:10,487 --> 00:24:13,227
Bank of International Settlements
in Basel, Switzerland, which was

712
00:24:13,227 --> 00:24:14,627
the original Basel agreements.

713
00:24:14,627 --> 00:24:16,293
And, you know, you've had

714
00:24:16,293 --> 00:24:20,183
iterations now up to Basel III,
which happened in the financial

715
00:24:20,183 --> 00:24:21,692
crisis in 2008, which homogenized
international banking standards.

716
00:24:21,692 --> 00:24:25,451
So that's kind of the cliff notes
for, I mean, there's a lot of

717
00:24:25,451 --> 00:24:28,426
depth that you can dig into there,
but that's the surface level.

718
00:24:28,526 --> 00:24:30,142
Well, I guess very difficult
question.

719
00:24:30,142 --> 00:24:33,876
What is the solution?
Let's not think pessimistically

720
00:24:33,976 --> 00:24:38,824
and think, okay, we're so far
gone, but if we could make a few

721
00:24:38,924 --> 00:24:44,300
changes or as many changes as you
want, where would we start?

722
00:24:44,200 --> 00:24:48,482
We'd shove democracy away and we'd
do a monarchy shove democracy away

723
00:24:48,482 --> 00:24:50,008
and we'd do a monarchy system.

724
00:24:50,008 --> 00:24:51,960
Because kings seem to do a better

725
00:24:51,960 --> 00:24:53,085
decision making than democracy.

726
00:24:53,085 --> 00:24:54,032
No, I'm just kidding.

727
00:24:54,032 --> 00:24:56,146
Although there is some merit to
that idea.

728
00:24:56,046 --> 00:24:57,539
I think the first step, it's an
attitude.

729
00:24:57,639 --> 00:24:59,445
It's an attitude with the public
to stop depending on government

730
00:24:59,445 --> 00:25:01,099
stimulus in order to make your own
life work.

731
00:25:01,099 --> 00:25:02,627
And that's difficult when
government continues to spend.

732
00:25:02,627 --> 00:25:05,687
Gosh, I think it's Alexis de
Tocqueville that said that once

733
00:25:05,687 --> 00:25:09,734
people find that they can vote
themselves a share of the public

734
00:25:09,734 --> 00:25:11,569
treasury, all democracy is lost.

735
00:25:11,469 --> 00:25:13,725
So as long as you keep devaluing

736
00:25:13,725 --> 00:25:17,229
and debasing the currency, you're
going to have a problem.

737
00:25:17,229 --> 00:25:21,469
So the first, I believe, step is,
I know that this is part of one

738
00:25:21,469 --> 00:25:25,160
particular party's platform, is
stop government spending, like

739
00:25:25,160 --> 00:25:25,504
overspending.

740
00:25:25,504 --> 00:25:27,821
This is the dollar that you have

741
00:25:27,821 --> 00:25:28,422
coming in.

742
00:25:28,422 --> 00:25:31,959
You have a total of a dollar to

743
00:25:31,859 --> 00:25:31,992
spend.

744
00:25:32,092 --> 00:25:33,523
You cannot spend $1.25 for every

745
00:25:33,523 --> 00:25:34,256
dollar of revenue.

746
00:25:34,256 --> 00:25:35,720
And the same party's political

747
00:25:35,720 --> 00:25:38,277
platform would also suggest that
they're lowering taxes.

748
00:25:38,277 --> 00:25:40,425
So now you have a decreased
government budget.

749
00:25:40,425 --> 00:25:44,392
I think getting government out of
the way of the people, out of the

750
00:25:44,392 --> 00:25:49,415
way of the entrepreneur, out of
the way of the builder, out of the

751
00:25:49,415 --> 00:25:53,315
way of the developer, out of the
way of creative people in the

752
00:25:53,315 --> 00:25:55,518
economy that can do good things is
the essential first step.

753
00:25:55,518 --> 00:25:59,220
And that takes a mind shift in
people because now we've been

754
00:25:59,220 --> 00:26:02,097
conditioned to believe that
without government, who would do

755
00:26:02,097 --> 00:26:03,330
X?
I'm a libertarian Austrian

756
00:26:03,430 --> 00:26:04,316
economist by nature.

757
00:26:04,316 --> 00:26:07,480
I believe in freedom and liberty.

758
00:26:07,480 --> 00:26:09,640
And people always say, well, what
about this?

759
00:26:09,640 --> 00:26:13,632
And what about that?
Can we stop bombing other people

760
00:26:13,632 --> 00:26:16,796
in other countries first?
Can we stop spending money on

761
00:26:16,796 --> 00:26:18,840
that?
Can we get some accountability in

762
00:26:18,840 --> 00:26:24,238
government in terms of $55 million
or for a particular app that was

763
00:26:24,238 --> 00:26:26,122
developed over the last three or
four years.

764
00:26:26,022 --> 00:26:27,995
Can we get the $8 billion that's
unaccounted for in another

765
00:26:27,995 --> 00:26:29,446
department?
Can we get that accounted for?

766
00:26:29,446 --> 00:26:31,608
Can we recover some of these
costs?

767
00:26:31,608 --> 00:26:33,595
What about consulting fees to the
government?

768
00:26:33,595 --> 00:26:36,712
Shouldn't we be actually just
hiring at salary somebody that can

769
00:26:36,812 --> 00:26:38,938
actually do the job instead of
getting all these hundreds of

770
00:26:38,938 --> 00:26:40,989
millions and billions of dollars
of consulting fees?

771
00:26:40,989 --> 00:26:42,388
Let's get some better
accountability.

772
00:26:42,388 --> 00:26:44,115
But it seems that that's not the
appetite of the voter at these

773
00:26:44,115 --> 00:26:44,444
times.

774
00:26:44,444 --> 00:26:46,753
It's easy to demand that somebody

775
00:26:46,753 --> 00:26:47,918
else pay for what you want.

776
00:26:47,918 --> 00:26:49,942
Well, I was just going to say,

777
00:26:49,842 --> 00:26:52,611
yeah, why would you ever do that?
Why don't you just increase the

778
00:26:52,711 --> 00:26:55,774
revenue, which is increased tax?
Yeah, that was sarcasm if no one

779
00:26:55,774 --> 00:26:57,898
picked up on it.

780
00:26:57,898 --> 00:26:58,577
Yeah.

781
00:26:58,577 --> 00:26:59,681
Going on that note.

782
00:26:59,681 --> 00:27:01,296
So I mean, capital gains

783
00:27:01,296 --> 00:27:05,320
inclusion, you put out a pretty
good post.

784
00:27:05,320 --> 00:27:08,879
I was thinking the same thing, you
know, when you were posting this,

785
00:27:08,879 --> 00:27:11,615
it's essentially a cash call, you
know, for a political party that

786
00:27:11,715 --> 00:27:13,828
is probably most likely on the way
out.

787
00:27:13,828 --> 00:27:18,206
Can you talk a little bit about
the capital gains inclusion in

788
00:27:18,206 --> 00:27:21,292
terms of how does that affect us
as a country and why do you think

789
00:27:21,292 --> 00:27:21,655
that was?
Yeah.

790
00:27:21,655 --> 00:27:27,327
Let's start by defining now this
capital gains has been parsed out

791
00:27:27,427 --> 00:27:30,736
as a separate a pretty start by
defining now this capital gains

792
00:27:30,736 --> 00:27:32,140
has been parsed out as a separate
motion.

793
00:27:32,240 --> 00:27:35,947
That's important to understand so
they could pass the budget and

794
00:27:35,847 --> 00:27:39,248
make capital gains a potential
election issue saying that, oh,

795
00:27:39,248 --> 00:27:40,956
one particular party is more for
wealthy people.

796
00:27:40,956 --> 00:27:41,680
Let's be honest.

797
00:27:41,680 --> 00:27:43,348
Most people in Vancouver haven't

798
00:27:43,348 --> 00:27:44,621
become wealthy because of their
acumen.

799
00:27:44,621 --> 00:27:47,590
No offense meant by that, but it's
just most people have just sat and

800
00:27:47,590 --> 00:27:50,425
bought their house in 1960 and now
it's worth a gazillion dollars

801
00:27:50,325 --> 00:27:51,556
compared to what they bought it
for.

802
00:27:51,556 --> 00:27:53,479
Oh, look at all this money I have.

803
00:27:53,479 --> 00:27:56,124
So let's talk about what capital

804
00:27:56,024 --> 00:27:57,126
gains inclusion rate is.

805
00:27:57,126 --> 00:27:59,162
It's a separate now bill.

806
00:27:59,162 --> 00:28:04,253
First, $250,000 of any investment
gain, any capital gain, which is a

807
00:28:04,253 --> 00:28:08,324
difference in our appreciation in
the price of an asset, is going to

808
00:28:08,324 --> 00:28:10,887
be taxed at 50% up to $250,000.

809
00:28:10,787 --> 00:28:11,962
And anything claimed over $250,000

810
00:28:11,962 --> 00:28:13,940
by an individual will be included
for income calculation purposes at

811
00:28:13,940 --> 00:28:14,170
66.2%.

812
00:28:14,170 --> 00:28:16,273
So let's give you a mathematical

813
00:28:16,273 --> 00:28:16,577
example.

814
00:28:16,577 --> 00:28:17,732
That doesn't mean that for every

815
00:28:17,732 --> 00:28:20,665
$250,000 you make, you're going to
pay $125,000 tax.

816
00:28:20,665 --> 00:28:24,773
That means $125,000 is going to be
included in your income and taxed

817
00:28:24,773 --> 00:28:26,602
at your marginal rates.

818
00:28:26,602 --> 00:28:29,118
So for example, you had a cottage

819
00:28:29,118 --> 00:28:32,291
or a rental property and you made
a million dollars on it.

820
00:28:32,291 --> 00:28:34,981
Well, $750 is going to be included
at 66 and two-thirds percent.

821
00:28:34,981 --> 00:28:36,610
Do the math on that.

822
00:28:36,610 --> 00:28:37,857
It's like $400,000 something.

823
00:28:37,857 --> 00:28:41,142
And $250 is going to be included
at $125, which is 50%.

824
00:28:41,142 --> 00:28:43,915
And then you'll pay your tax on
the net gain.

825
00:28:43,915 --> 00:28:47,589
In a business or trust, there is
no bottom line reduction in the

826
00:28:47,583 --> 00:28:48,020
inclusion rate.

827
00:28:48,020 --> 00:28:49,040
or in the inclusion rate.

828
00:28:49,040 --> 00:28:53,215
So on every dollar of a capital
gain, your business, your trust

829
00:28:53,215 --> 00:28:56,341
will be taxed at the inclusion
rate of 66 and two thirds percent.

830
00:28:56,236 --> 00:28:57,216
Now, why is that important in a
corporation?

831
00:28:57,216 --> 00:29:00,457
Because you're going to get taxed
at 51% in British Columbia on any

832
00:29:00,457 --> 00:29:01,194
aggregate investment income.

833
00:29:01,194 --> 00:29:02,300
Let's just say a million dollar

834
00:29:02,580 --> 00:29:05,389
gain, $666,667 is now going to be
taxed at 51% instead of $500,000

835
00:29:05,389 --> 00:29:06,089
being taxed at 51%.

836
00:29:06,089 --> 00:29:07,920
So you can see that there's a real

837
00:29:08,440 --> 00:29:10,550
focus on attacking small business,
attacking investment in this

838
00:29:10,550 --> 00:29:11,214
country.

839
00:29:11,214 --> 00:29:12,480
And to answer your question about

840
00:29:12,480 --> 00:29:15,545
why is this important for Canada
is because investment is going to

841
00:29:15,645 --> 00:29:16,003
be punished.

842
00:29:16,003 --> 00:29:17,672
So if investment is going to be

843
00:29:17,672 --> 00:29:19,841
punished, where are the foreign
investors?

844
00:29:19,841 --> 00:29:20,847
Canada relies on foreign
investment.

845
00:29:20,847 --> 00:29:23,480
It's not just our own dollars, but
it's other international global

846
00:29:23,480 --> 00:29:27,823
money that comes in and says, we
have a project in Canada.

847
00:29:27,823 --> 00:29:25,813
You're going to be punished when
you bring your money to Canada.

848
00:29:25,813 --> 00:29:28,023
Money's going to find a return.

849
00:29:28,023 --> 00:29:30,185
It's going to go towards the best

850
00:29:30,085 --> 00:29:31,082
risk-adjusted return.

851
00:29:31,082 --> 00:29:32,932
And when you factor in the tax,

852
00:29:32,932 --> 00:29:36,957
you're going to see money drain,
go to the US or other more

853
00:29:36,857 --> 00:29:38,042
tax-friendly jurisdictions than
Canada.

854
00:29:38,042 --> 00:29:41,136
Now, what's interesting and what I
posted about was this isn't

855
00:29:41,136 --> 00:29:41,860
legislated yet.

856
00:29:41,860 --> 00:29:44,613
So what's the possibility that the

857
00:29:44,613 --> 00:29:50,336
Liberals are going to say, we're
not going to pursue this motion

858
00:29:50,322 --> 00:29:50,522
anymore.

859
00:29:50,446 --> 00:29:51,142
We're going to drop it.

860
00:29:51,097 --> 00:29:51,624
And it's a margin call.

861
00:29:51,624 --> 00:29:52,678
It's a margin call on tax.

862
00:29:52,678 --> 00:29:54,191
So they're going to benefit quite
well from everybody acting before

863
00:29:54,191 --> 00:29:56,887
the June 24th deadline to have
their taxes paid in advance on

864
00:29:56,887 --> 00:29:58,642
assets that were just sitting
there.

865
00:29:58,642 --> 00:30:03,594
It kind of goes back to what
Freeland said in 2020.

866
00:30:03,594 --> 00:30:06,805
How do we activate preloaded
stimulus in people's bank

867
00:30:06,805 --> 00:30:08,365
accounts?
Same principles apply.

868
00:30:08,365 --> 00:30:11,209
Yeah, and I believe it's
detrimental to our economy to

869
00:30:11,209 --> 00:30:15,909
penalize small businesses like
that, but it's almost worse to

870
00:30:15,909 --> 00:30:20,591
have leadership manipulating the
system in order to get that

871
00:30:20,591 --> 00:30:21,735
result.

872
00:30:21,735 --> 00:30:24,230
So what did Bill Morneau Morneau

873
00:30:24,230 --> 00:30:28,583
say in his first budget?
Business owners are tax cheats,

874
00:30:28,583 --> 00:30:33,120
even though those business owners
were acting in the letter of the

875
00:30:33,120 --> 00:30:37,006
prior legislation, right?
So how could they be tax cheats if

876
00:30:37,006 --> 00:30:40,631
they were following what they were
told the rules were?

877
00:30:40,531 --> 00:30:43,664
And it's very difficult to fight
against a system that keeps moving

878
00:30:43,664 --> 00:30:47,760
the goalposts on the field and are
the referees at the same time.

879
00:30:47,760 --> 00:30:52,213
So you were saying that they
announced the capital gains tax to

880
00:30:52,213 --> 00:30:57,751
get people to move, but then in
the fall, when it goes back to

881
00:30:57,751 --> 00:31:00,108
session, they're not going to pass
the law?

882
00:31:00,108 --> 00:31:00,617
It's possible.

883
00:31:00,617 --> 00:31:02,020
It's a possibility.

884
00:31:01,920 --> 00:31:08,081
I'm not going to say that I think
that's going to happen, but it

885
00:31:08,081 --> 00:31:11,115
would be very interesting to see
the current party do that.

886
00:31:11,115 --> 00:31:15,554
I think it's about a 5% chance
that's going to happen, but

887
00:31:15,554 --> 00:31:17,790
postulating it a bit further
without further slipping down into

888
00:31:17,790 --> 00:31:21,322
the polls to say, we're going to
hammer this through and attack

889
00:31:21,322 --> 00:31:21,821
wealth.

890
00:31:21,821 --> 00:31:22,652
Oh, it's okay.

891
00:31:22,652 --> 00:31:28,464
But even if they don't go that
direction, even if they don't go

892
00:31:28,463 --> 00:31:33,489
that direction, the argument would
be, well, why wouldn't you allow a

893
00:31:33,489 --> 00:31:39,598
12 or a 24 month runway for people
to get their affairs in order

894
00:31:39,598 --> 00:31:43,007
instead of making it such a short
window?

895
00:31:43,007 --> 00:31:45,200
That's the big one.

896
00:31:45,100 --> 00:31:48,135
But you're spot on, like the

897
00:31:48,135 --> 00:31:50,484
legislation that's being changed
so frequently, so quickly.

898
00:31:50,484 --> 00:31:54,555
How can you play within the rules
if they just constantly change

899
00:31:54,555 --> 00:31:57,070
them?
We used to have a system of

900
00:31:57,070 --> 00:31:57,816
democratic process.

901
00:31:57,716 --> 00:32:00,295
We would make changes slowly over

902
00:32:00,295 --> 00:32:00,730
time.

903
00:32:00,730 --> 00:32:03,915
Now that just seems to be going at

904
00:32:04,015 --> 00:32:04,650
warp speed.

905
00:32:04,650 --> 00:32:07,335
If you have a party that knows

906
00:32:07,335 --> 00:32:09,604
that they're going out, then the
laws that they enact become

907
00:32:09,604 --> 00:32:11,818
nonsensical towards the end of
their term because they know

908
00:32:11,818 --> 00:32:13,045
they're going to lose.

909
00:32:13,045 --> 00:32:14,505
Now, 18 months or 12 months until

910
00:32:14,505 --> 00:32:16,538
the election must be called.

911
00:32:16,638 --> 00:32:18,902
Still a long time, a lot of

912
00:32:19,002 --> 00:32:22,208
runway, a lot of things can happen
between now and October 2025.

913
00:32:22,208 --> 00:32:27,686
So I'm going to shift gears into
our to shift gears into our

914
00:32:27,686 --> 00:32:28,098
wrap-up round.

915
00:32:28,098 --> 00:32:30,646
If you could buy one property in

916
00:32:30,646 --> 00:32:33,827
the Okanagan in the next 12
months, what would it be?

917
00:32:33,727 --> 00:32:34,230
What's rare?
rare?

918
00:32:34,230 --> 00:32:34,671
Lakefront, acreage.

919
00:32:34,671 --> 00:32:35,677
I love it.

920
00:32:35,677 --> 00:32:38,060
If you could give your 20-year-old
self any advice, what would you

921
00:32:38,160 --> 00:32:39,360
say, Mike?
Don't be such an idiot.

922
00:32:39,440 --> 00:32:43,335
I feel like I tell my yesterday my
yesterday self that.

923
00:32:43,335 --> 00:32:45,703
I woke up this morning and said,
yeah.

924
00:32:45,703 --> 00:32:49,354
No, I think the one piece of
advice is don't be afraid.

925
00:32:49,454 --> 00:32:52,750
Don't give in to the fear of
failure or the fear of success.

926
00:32:52,650 --> 00:32:56,923
Grow yourself, focus on you and do
whatever it takes to improve your

927
00:32:57,023 --> 00:32:58,276
life on a daily basis.

928
00:32:58,276 --> 00:32:58,507
Nice.

929
00:32:58,507 --> 00:33:02,236
And buy a damn insurance policy at
age 20 for God's sake.

930
00:33:02,236 --> 00:33:05,259
That's what I That's what I was
waiting for.

931
00:33:05,259 --> 00:33:07,816
I'm thinking we're all so bad at
sales and marketing.

932
00:33:07,816 --> 00:33:10,300
We literally just ask you, what
property would you buy?

933
00:33:10,720 --> 00:33:11,700
Lakefront, Acreage.

934
00:33:11,700 --> 00:33:12,710
Cool, right on.

935
00:33:12,610 --> 00:33:16,460
We should be like, oh, hey, I've
got an awesome property you should

936
00:33:16,460 --> 00:33:17,610
check out.

937
00:33:17,510 --> 00:33:18,004
Yeah, exactly.

938
00:33:18,004 --> 00:33:19,549
What advice would you give your
younger self?

939
00:33:19,549 --> 00:33:19,796
Insurance.

940
00:33:19,796 --> 00:33:21,613
I first learned about insurance in

941
00:33:21,613 --> 00:33:24,889
2002 when I took my securities
course course and it was two

942
00:33:24,889 --> 00:33:25,299
pages.

943
00:33:25,299 --> 00:33:27,824
And then I took my LOQP in 2007

944
00:33:27,824 --> 00:33:31,784
and I'm like, okay, well, I see a
need for term and maybe a need for

945
00:33:31,784 --> 00:33:31,928
permanent.

946
00:33:31,928 --> 00:33:33,182
It's a total other podcast we'll

947
00:33:33,182 --> 00:33:35,397
have to do on that because there's
so much depth of information about

948
00:33:35,497 --> 00:33:37,160
how to achieve financial
sovereignty using the right policy

949
00:33:37,360 --> 00:33:40,492
with the right structure once you
have some of your other financial

950
00:33:40,492 --> 00:33:44,211
affairs like it has to be suitable
yeah right and you have to have a

951
00:33:44,211 --> 00:33:47,610
need for insurance it kind it kind
of goes hand in hand it's becoming

952
00:33:47,610 --> 00:33:51,292
a much stronger tool or asset when
we're talking about capital gains

953
00:33:51,292 --> 00:33:54,586
included like stuff like that it's
just everything else is kind of

954
00:33:54,586 --> 00:33:57,657
starting to be taken off the board
in terms of where the opportunity

955
00:33:57,657 --> 00:33:57,948
lies.

956
00:33:57,948 --> 00:33:57,657
And it's really pushing into that

957
00:33:57,657 --> 00:34:00,781
tax planning, generational wealth
planning side, which leads you

958
00:34:00,781 --> 00:34:01,877
back to insurance.

959
00:34:01,877 --> 00:34:02,924
But like you said, whole nother

960
00:34:02,924 --> 00:34:03,073
podcast.

961
00:34:03,073 --> 00:34:04,718
Next question, what is your

962
00:34:04,718 --> 00:34:06,826
favorite charity or how do you
give back?

963
00:34:06,826 --> 00:34:10,340
So So I served on the board of the
Boys and Girls Club of Greater

964
00:34:10,400 --> 00:34:10,684
Victoria.

965
00:34:10,684 --> 00:34:12,956
I was very passionate, especially

966
00:34:12,956 --> 00:34:16,784
very sad, but we had the only safe
house for sexually exploited youth

967
00:34:16,784 --> 00:34:19,399
in the province at the time.

968
00:34:19,399 --> 00:34:22,520
I decided to leave the board for a

969
00:34:22,520 --> 00:34:28,068
few reasons, but one of them is
they didn't need me around the

970
00:34:28,068 --> 00:34:28,902
table to make decisions.

971
00:34:29,003 --> 00:34:30,829
They needed me to go work my butt

972
00:34:30,829 --> 00:34:32,371
off to write them checks.

973
00:34:32,371 --> 00:34:34,808
to go work my butt off to write

974
00:34:34,808 --> 00:34:35,130
them checks.

975
00:34:35,130 --> 00:34:37,172
So I really see the Boys and Girls

976
00:34:37,172 --> 00:34:38,895
Club as being a valuable resource
for youth.

977
00:34:38,895 --> 00:34:40,587
I'm passionate about youth.

978
00:34:40,587 --> 00:34:42,047
I'm passionate about the sanctity

979
00:34:42,047 --> 00:34:42,739
of childhood.

980
00:34:42,960 --> 00:34:43,465
So that's close.

981
00:34:43,565 --> 00:34:44,389
So that's close.

982
00:34:44,389 --> 00:34:45,819
I love that one.

983
00:34:45,819 --> 00:34:46,408
Yeah.

984
00:34:46,408 --> 00:34:48,338
All right, Mike, how can Taylor or

985
00:34:48,338 --> 00:34:50,083
I or our listener help you?
Look, I think the biggest thing

986
00:34:50,183 --> 00:34:52,371
that you can start thinking about
is get politically involved.

987
00:34:52,371 --> 00:34:55,556
I'm at a point in my journey being
on this planet and being a

988
00:34:55,656 --> 00:34:57,418
Canadian that whole time for 83
years now.

989
00:34:57,418 --> 00:34:57,825
Just kidding.

990
00:34:57,791 --> 00:34:59,488
I'm 51 and I would love to see

991
00:34:59,588 --> 00:35:02,340
young people get involved in
understanding what policies

992
00:35:02,240 --> 00:35:05,108
support your candidate, not what
virtue signaling, demographically,

993
00:35:03,846 --> 00:35:06,523
gender-based voting, all that sort
of stuff.

994
00:35:06,493 --> 00:35:07,600
I'm voting because she's my ethnic
background.

995
00:35:09,500 --> 00:35:10,484
I don't believe in that.

996
00:35:10,484 --> 00:35:12,580
I believe in looking at the policy

997
00:35:12,740 --> 00:35:14,625
and not the person because people
will fail you.

998
00:35:14,625 --> 00:35:15,860
Policies and processes will not.

999
00:35:16,140 --> 00:35:17,899
So number one, get politically

1000
00:35:17,899 --> 00:35:20,959
involved, at least to a point
where you can educate yourself on

1001
00:35:20,959 --> 00:35:22,963
what's going on in this country.

1002
00:35:22,963 --> 00:35:24,388
Number two, take care of yourself.

1003
00:35:24,388 --> 00:35:25,918
I really love the idea of strong
relationships, strong bonds of

1004
00:35:25,918 --> 00:35:27,913
relationships, especially within a
family or something like that.

1005
00:35:27,913 --> 00:35:30,960
So treat your kids and your
significant other as if they were

1006
00:35:30,960 --> 00:35:33,260
gold, because in reality they are.

1007
00:35:33,152 --> 00:35:34,599
I would love for people to be

1008
00:35:34,599 --> 00:35:35,960
involved in their financial
literacy and sovereignty.

1009
00:35:35,960 --> 00:35:39,240
And you can check out a number of
sites that we've got going on in

1010
00:35:39,660 --> 00:35:44,626
order to help people specifically
using the proper use of a whole

1011
00:35:44,626 --> 00:35:46,854
life insurance contract to achieve
financial sovereignty at

1012
00:35:46,854 --> 00:35:47,062
ibcanadagroup.com.

1013
00:35:47,062 --> 00:35:49,962
Got a lot of YouTube videos going

1014
00:35:49,962 --> 00:35:50,169
on.

1015
00:35:50,169 --> 00:35:52,855
We got a lot of stuff.

1016
00:35:52,755 --> 00:35:53,997
So there's lots of different
resources.

1017
00:35:53,997 --> 00:35:57,100
I really care about holistically
the whole person.

1018
00:35:57,360 --> 00:36:00,081
So if you vote for something
stupid, I get to blame you.

1019
00:36:00,081 --> 00:36:05,389
That might be my favorite quote of
the day for you, but you said a

1020
00:36:05,389 --> 00:36:06,647
lot of good ones.

1021
00:36:06,647 --> 00:36:08,173
You might be stupid.

1022
00:36:08,173 --> 00:36:08,391
Yeah.

1023
00:36:08,391 --> 00:36:08,682
Yeah.

1024
00:36:08,682 --> 00:36:11,371
You might be stupid, so I can
blame you.

1025
00:36:11,371 --> 00:36:12,949
Or not blame me at all.

1026
00:36:12,949 --> 00:36:13,138
Yeah.

1027
00:36:13,138 --> 00:36:13,327
Yeah.

1028
00:36:13,327 --> 00:36:14,270
Well, it has been something.

1029
00:36:14,270 --> 00:36:17,257
I don't know if it's just our age
or just the fact that we're

1030
00:36:17,257 --> 00:36:19,347
getting a little bit closer to the
election.

1031
00:36:19,347 --> 00:36:23,414
But yeah, it's something Matt and
I are trying to educate ourself

1032
00:36:23,414 --> 00:36:25,210
and our listener more on as well.

1033
00:36:25,210 --> 00:36:26,267
So, yeah, I appreciate your time.

1034
00:36:26,267 --> 00:36:29,584
We'll obviously put a bunch of
stuff in the show notes and would

1035
00:36:29,584 --> 00:36:34,260
love for our listener to connect
with you and on YouTube as well.

1036
00:36:34,360 --> 00:36:35,037
So, yeah.

1037
00:36:35,037 --> 00:36:37,129
Hey, guys, this has been a blast.

1038
00:36:37,229 --> 00:36:40,623
Thank you for allowing me to just
riff a little bit, talk about what

1039
00:36:40,482 --> 00:36:41,825
I'm passionate about and for your
hospitality.

1040
00:36:41,825 --> 00:36:42,461
It's been great.

1041
00:36:42,461 --> 00:36:43,310
Thanks Thanks Mike.

1042
00:36:43,310 --> 00:36:44,865
Well, have a great day.

1043
00:36:44,865 --> 00:36:47,410
Hopefully it's not too smoky for

1044
00:36:47,410 --> 00:36:47,552
you.

1045
00:36:47,552 --> 00:36:49,673
Keep in touch and we'll talk to

1046
00:36:49,673 --> 00:36:50,663
you soon.

1047
00:36:50,663 --> 00:36:52,389
Thanks and God bless Thanks and

1048
00:36:52,289 --> 00:36:52,996
God bless guys.

1049
00:36:52,996 --> 00:36:53,561
Thank you.

1050
00:36:53,561 --> 00:36:53,915
guys.

1051
00:36:53,915 --> 00:36:54,127
Thank