Episode 188: The Smarter Way to Build an Emergency Fund (That Actually Grows)

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Are you treating your emergency fund like a financial afterthought — or a true wealth-building tool?

Let’s face it: stashing money away for “just in case” doesn’t exactly spark excitement. Most people either avoid building an emergency fund altogether or assume a line of credit will save the day. But what happens when access to borrowing tightens, or a true emergency hits? This episode challenges the traditional, passive approach to emergency funds — and offers a smarter, more strategic alternative that works with your wealth-building goals, not against them.

This episode is a re-broadcast from episode 54. First released in December 2023.

In this episode, you’ll discover:

• How much you really need in an emergency fund — and how to calculate it without guesswork
• Why typical advice (like keeping cash in a savings account) might actually be costing you money
• A creative, lesser-known strategy that transforms your emergency fund into a safe, flexible opportunity fund

Learn how to supercharge your emergency fund and make it work harder for your financial future — press play now.

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Calling All Canadian Incorporated Business Owners & Investors:

Consider reaching out to Kyle if you’ve been…

• …taking a salary with a goal of stuffing RRSPs;
• …investing inside your corporation without a passive income tax minimization strategy;
• …letting a large sum of liquid assets sit in low interest earning savings accounts;
• …investing corporate dollars into GICs, dividend stocks/funds, or other investments attracting cordporate passive income taxes at greater than 50%; or,
• …wondering whether your current corporate wealth management strategy is optimal for your specific situation.

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Transcript:

In this episode, we’re going to unpack emergency funds. That’s right. How much should you have in your personal or your businesses emergency fund?

We’re going to talk about tips on deciding if your emergency fund is large enough to match what the experts say is appropriate.

And we’re also going to talk about investment vehicles. And specifically, we’re going to talk about like where this emergency fund lives. Like where does, is it in your bank account? Is it somewhere else? We’re going to talk about vehicles that can actually optimize your emergency fund. So it doesn’t feel like that emergency fund sitting there kind of being wasted by just kind of waiting for that, that terrible rainy day. We’re also going to help you build that emergency fund from scratch.

so that you don’t also feel like you’re leaving money on the table. Let’s do this.

All right, my friends, here we go.

And I’ll tell you, we are super excited to dive into this topic. And, know, I’ll be honest, John, I’m hoping that people didn’t see like emergency fund and then hit the skip button because the reality is, like, I’ll be honest, I am not exactly inspired each day to get up and save into an emergency fund. It’s pretty boring.

You know, it feels like stagnant money typically. And, you know, I think for some people they would just rather get to the real money making, right? Like it’s in your mind, Hey, if I could just go out and make a bunch of money, then I hit a couple of home runs. Then it’s like my emergency fund is done. But in reality, what we really need to be aware of is that when we’re on this journey, we want to make sure that we’ve got those patio stones kind of placed firmly in front of us so that

Each step in this journey is going to be easier. It’s going to be more direct and it’s going to be more clear and concise for you. So we’re excited to dive in and John, think we’re going to be leaning on some of these quote unquote experts from the search.

sure. And if you think about it, like you’re at a, let’s say you’re, you’re at a social event, you’re, you know, you’re, you’re talking with other people and they bring up like, I’ve, I’ve had this brought up, or you hear that, you know, like I’ve got my six months, you know, expenses tucked away. Like if we, if we ever had lost our jobs, we ever had an emergency happen, we’ve got money. Whereas most people don’t actually have it. Like you, you know, most people are living paycheck to paycheck and that

There’s stats out there that say that if you had an extra $400 added to your expenses that month, most families can’t afford that extra $400. So it’s like you can’t actually, you have to borrow, you have to use your, people are using their credit cards. Like the emergency fund is like one of those things. Like I remember being at a social event and it came up and it’s like, wait, I don’t have that set up.

Like if we did have an emergency, I would have to borrow, you know, and, and that’s like, wait a minute. So it doesn’t sound so flashy. I agree, Kyle, but I feel like there’s also like that stigma. I mean, like I don’t actually have it, you know, so I’m, I’m crossing my fingers that nothing happens, you know, in that case. So, so we’re going to talk all about how to set that up, what it should be, how big should it be and the vehicles that you should be utilizing. so you don’t feel like you’re leaving money on the table, but I think this, this also started, Kyle, we were reviewing.

Dave Ramsey’s seven steps to kind of financial wealth. And he’s got, he calls them seven baby steps to financial wealth. And one of those steps, you know, it’s not the first step, but one of those steps is about, you know, having that three to six months expenses in a fully funded emergency fund. And we started talking about that going like,

what are the best ways to do that? Because I think what he’s got, if you went to his website, you were listening to him speak, he’s mostly referencing that you have this like bank account that’s got this money sitting in there when he says it’s fully funded emergency fund, which means it’s like right over there, like you can actually go and withdraw from it and you can get that money. Like it’s accessible.

He’s got three to six months listed there and we started talking to like, that the best way to do that? And that’s what sparked this.

So absolutely. actually his number one step and I’ll give him that he doesn’t say like, go immediately to building this massive emergency fund, but rather step one is just to get like a thousand dollars kind of into this little start emergency fund. So he does start that process. That’s a nice quick win. You know, you and I were both talking about it. those who are watching on YouTube, can kind of

see this list of seven steps here. And basically like what he says is you can take control. Like this is his seven baby steps to becoming wealthy or financially free or to build wealth. And he says that these seven baby steps will show you how to save for emergencies, pay off all your debt for good and build wealth. It’s not a fairy tale. It works every single time. And I will be honest and say like these seven steps are fairly like

accurate. Like I would say, like, if you do these things, the problem is, is that some of these steps are pretty massive. They’re not quite a lot of commitment and it doesn’t get into sort of the, the, nuts and bolts of, know, what does that really look like and sound like for the average individual? And I’m going to argue that even though folks who are listening to this podcast are focused in their wealth building journey, what they probably, I say, probably it’s a wrong, wrong word for it, but what I might assume

many have overlooked is the emergency fund. And a lot of people do look back to their home equity line. They look at their credit card. They look at this access to capital, this access to borrowing. And they look at that as their emergency fund. And I would just argue that if we are truly on this wealth building journey, there’s a couple of things that have to happen. One thing is we’ve got to be ultra committed and being committed

to even something as I say small, but an emergency fund, three to six months of expenses for a lot of people is a big amount of money. Like it’s a big sum of money. And basically what they’re saying is like, hey, listen, if you lose a job, right, or you get laid off, or if there’s this massive unexpected expense of some type, right? I think in the U.S. that’s even more so the case with, you know, healthcare and some of those expenses that may not be

you we may not be properly prepared for here in Canada. You know, we have a little bit more of a safety net there, but the reality is, is that if I don’t have that access, then we’ve got a little bit of a problem. Now, some people might totally skip right over that and say, well, listen, I’m just gonna skip to step four, which he says is investing 15 % of my household income into retirement or into investments in general.

and you know, that could be one way of going about it, right? Like if I am aggressively saving, as long as some of those investments are still accessible, right? You could look at that little bucket as your emergency fund. So we’re not here to say there’s only one way to do this, but we do want to talk a little bit about, okay, if it’s three to six months of expenses, you need to determine like three to six months is a big difference. You know, like they’re saying it’s like either this amount or double that amount, like somewhere in there.

Right. And what is that amount? Like what is a true expense? Like of course, rent or mortgage. Sure. Car payment. Sure. Insurance. Sure. But like, if you go down the list, it’s like, are you calling, you know, groceries, you know, an expense, I’m going to Right. But I think sometimes we get a little bit, you know, maybe conservative in what our real expenses are based on our current lifestyle. So I would encourage you. gotta pay us. You gotta eat.

going back to some of our budgeting discussions that we’ve had on the show earlier, is really get a sense of how much are you really spending? Because let’s be honest, if you get into a pinch where you need to access an emergency fund, I’m gonna guess that there’s a lot going on and you’re not necessarily gonna wanna be cutting back on the grocery spending, back on all these things while an emergency is happening, right?

So these are some of the things that we want to be thinking about and just making sure that we are, again, firmly, we have a plan to place this patio stone in front of us so we can take that next step along the journey. And again, there’s various ways to do it, but today we want to unpack maybe a creative approach that we haven’t run into anyone actually doing. we’re excited to share.

That’s what we love, know, love thinking about creative uses of, you know, access to money that we can utilize, you know, because I think what I get worried about, and I think this is why people tend to shy away from, you know, the bank account that’s fully funded sitting there doing nothing, you know, like you said, Kyle, like, and this was the mindset that I had is like, hey, I’ve got a home equity line of credit. That’s my emergency fund. I’m just going to earmark.

that don’t go over this much if I’m borrowing from my line of credit to make an investment or, you know, let’s say we were buying our one of our properties, I’m using that as my down payment and I’m utilizing that to kind of create cashflow back on that line of credit. Like I was earmarking a chunk to be like, this is my emergency fund. But then it’s like, that’s great and all. And I have the access to this other capital. But I mean, like, is that the best use of that?

Or is there other ways or other, you know, other vehicles that can do that and more. And that’s, that’s what led us down into this kind of pathway to utilize some of the tools at our disposal to, kind of, you know, get an emergency fund going, but actually allows you to do so much more. And that’s what we want to unpack here on, us being creative with our emergency fund and safe at the same time.

Yeah. And I think something worth mentioning too is like one thing and you, you know, some people who are listening may have heard people say this before, but this quote is that, you know, Ben banks and lenders are always excited to lend you money when you don’t need it. But when you do need it, they’re not excited to do it. Right. So, I mean, I’m sure anyone listening who has their own business, right? If they are a business owner, entrepreneur,

Or if you’re an investor and you’ve gone maybe full time into an investment world, right? Where you’re working out of a corp, you’re trying to expense things from your life, but now you’re not showing an income and all of a sudden the banks are saying, sorry, I don’t wanna lend to you. Well, guess what? If a real emergency happens and I’m relying on say a home equity line of credit, and let’s say interest rates are at 20 year highs as they are currently as we record this.

You know, it’s one of those things. I’m not saying it won’t work. Like it might still work just fine, but is that, is that, I guess a risk that we’re willing to take for some people we we’ve done it. We’ve been there. We’re, not perfect. That’s for sure. but we want to, again, like you said, kind of supercharge this a little bit. And I want to approach this idea of like, imagine this world. If you were able to check off this emergency fund thing while on a journey.

to something bigger and better, right? And I think for me, that’s the motivator behind this particular strategy. This particular strategy is one that again, I’m not seeing commonly used. There are some folks out there who talk about different strategies. I’m sure some people have heard about infinite banking. We’ve talked about it before on the show or bank on yourself. Like this is a very specific strategy.

And we’re gonna kind of show how you can evolve this strategy really nicely. And I wanna say that if you look at this as not necessarily building just an emergency fund, but rather building your safe asset and opportunity fund and on the journey accomplishing your emergency fund, I think it puts you in the right mindset as we enter this discussion. what I wanna make sure,

There is no misunderstanding that we are not saying that use this strategy to put all of your capital into that is not what we’re saying at all. But imagine if you could take some of that safe money, right? So I’d call it like your fixed income investments or your, maybe your bonds, right? So people talk about stocks versus bonds and what that ratio should be when you’re younger, more aggressive with the stocks. And when you’re getting older, you go more aggressive with the bond. Well,

There’s a lot of research to show that just simply using like a split like that isn’t necessarily going to be super solid. And it’s not going to, I guess, decrease the volatility in the way that you’d like to see happening, because when there’s something going on in the economy, both of them tend to, fall. So that’s not helpful. They become very correlated in bad times, right? They’re, not correlated in good times, but they are correlated in bad times. So here, what I’m picturing this as is like, again,

dual purpose. We’re going to along this journey, you’re going to accomplish your emergency fund, which is a great win. And you’re going to also increase this safer asset that’s also flexible enough to be able to be used as an opportunity fund.

Love it. So let’s dig in. Because I think, I think we were now at the edge of our seat going, okay, like, like, you know, what is this technique? Because it’s like, if, if I also build emergency fund, but also think about how do I create a safe asset? You know, some people and you had mentioned this about, you know, you know, correlation between the stock market and, and, the economy. you mean like, if I, if I build this asset,

in say one container. And then I continually build that asset after the emergency fund, five months, six months of expenses has hit its limit. You know, if I say $5,000 per month is what I need, you know, after six months, have $30,000 saved up in my emergency fund container. I could keep going with that. Maybe I stick that in the stock market, you know, and in that stock market could be an index funds, which

is safer than say picking your own stocks because it’s got a historically good return. But then you’re right, like there’s the downs and the ups and it’s like, what happens if I need that? Well, the emergency fund is like in there too or not? No, it’s over here in this container, but the rest I could continue to keep adding the 5,000 or how much I wanna put into that account every month after now I’m building towards my retirement. So that is like how I sometimes see

how you could keep the same consistency, but achieve both. You’ve got your emergency fund and you’ve got this retirement asset that’s growing. Maybe it’s in your retirement funds or maybe it’s just on its own, but I think we can do better,

I think so as well. up on YouTube for those who are with us, I’ve got just a couple of graphics here. We will dig into the weeds a little bit at the end, but just to make sure people are kind of understanding here, like we know that, you know, the challenge here with super, we’re going to call it supercharging your emergency fund. Okay. So we’re going to supercharge your emergency fund. And again, we’re going to almost look at it as like the emergency fund is the bonus that’s going to come out of this strategy. It’s going to be a safe strategy, a safe asset.

but also give you opportunity to continue investing beyond. So we’re gonna use the assumption like three to six months worth of expenses. And for this individual, we’re gonna call that $30,000, okay? We’re calling it that. For you, you might look at that and go like, wow, that’s way too low. For some of you might be like, that’s way too high. I’m gonna guess for many, you’ll probably say, actually, that’s kind of low, especially if we’re thinking about six months, or just use that as a starting point. And as you can imagine, for most people,

Like we’re not going to encourage you to borrow to fund your emergency fund, right? Like this is something that you’re going to have to figure out. Like what, at what pace can you reach this goal? And we’re not saying it has to be this pace that we’re sharing, but we’re going to pick a pace. We’re going to assume that over the next five years, we’re going to save $6,000 per year. And normally like, so what is that $500 per month? Some people are like, yikes. That’s, that’s a lot. If that, if you’re saying that.

I’m gonna say that you gotta pause and you gotta ask yourself, okay, well, where is this money going? If you’re maxing out investments, then I’m cool with it. You know what I mean? Like if you’re like, it’s tight because I’m contributing like a significant amount to investments of some type, then you’re off the hook, okay? And maybe you’re already in a position where those, you have access to some of those funds, making sure some of them are liquid enough. Fantastic, or you might want to pivot to this strategy.

This might be something if you want to add a little bit of that safety, right? I know for, we’ve talked about it on the podcast before, you my first 10 years in this journey, I guess 15 years in this journey, you know, I did a lot of learning. I did a lot of risk taking and like, as I get older, I turned 40 this year. As we end 2023 here, I turned 40 and now I start to look and go, hmm, over the next 10 to 15 years,

I definitely want to make sure that I’m not as exposed to say volatility, right? So a strategy like this is helpful for someone like myself. know John, you’ve been thinking the same thing as well, just to have some, you know, and for us, these X golden handcuffers, right? These people that had pensions and are now not necessarily relying on a pension. It’s like, I like looking at this tool as a way to help me replace my pension with certainty.

while doing all the extra bonus stuff with my growth sort of assets, right? So these are things that we might be thinking about as we look at this strategy. in, you know, usual result here, 6,000 for the next five years, that’ll help us fund. You’ll normally get to 30,000. And John, you had mentioned earlier, it’s like, and the part that hurts people’s soul is like just watching it sit there.

Yeah, let’s be honest. It’s actually losing money. Like it’s actually going down in value. It’s going down in how much it can buy and purchasing power, right? Inflation has been very high. It’s been very hot. Hopefully it does come down. It’ll probably never get to 2 % as you know, the U S fed and the bank of Canada are hoping that’s their goal. The reality is it’s always floating higher than that, even though they try to bake it as something that’s that smaller.

So it’s losing, losing maybe to bank fees, losing to all these other factors. So we’re gonna improve on this a little bit and we’re going to bring back, friends, you remember it, episode 20, we talked about the magic compounding or money printing machine, right? This far whole life policy, which is a super safe asset and it grows at a very consistent, I say consistent, it definitely does vary. However,

It never goes backwards. It’s never going to earn 10 % a year. It’s never going to earn, you know, 0 % a year. It’s going to be somewhere over time, compounding at around this like 4 % mid 4 % range, which over any 20 year period tends to be around where rates are or where inflation is. If you look at real inflation. So it’s going to keep up with inflation and continue growing and

remain accessible to you so that you can use it as a, either as a safety fund or as an opportunity fund. So let’s look at what happens here. Okay. So we fire in 6,000 a year for the first five years. John, we have reached our goal because guess what? We put our 30,000 in like that part is easy. It’s just more or less you set yourself the goal, pick that number and we open up a participating whole life.

insurance policy has to be structured in a very specific way so that there is cash value, more emphasis on the early cash value of this policy. So this would be similar to a policy you might see in a bank on yourself or a infinite banking type policy, that sort of thing. We use these types of policies for many of our strategies. And I’ll tell you, based on the projections using the illustrations from last year’s dividend rates that were shared,

And keeping in mind, dividend rates should be going up over the next couple of years because all interest rates have risen. So over time, you’ll see policy dividend rates following suit. And we were coming out of a historically low interest rate environment. So when we look at this and go, okay, after five years, the cash value is just over 30,000. Like some people are looking like, Kyle, I thought we were supercharging this thing, right? And it’s like,

We are, but guess what? Like all good things, right? It takes time. It takes a little bit and we’ll call it kind of like real estate investment. takes time for those fixed costs at the beginning to start this new business or start this new strategy. And it’s after year five, when you start to see the beauty. Right. But he hit that first goal.

Exactly. I was just about to say that. If you’ve already hit your first goal, which is to have the 30,000 over the course of that five years, if you’ve set this up using your trusted advisor, you’ve hit goal one. Goal one is you have $30,000 available for you to use in the case of an emergency in this policy.

Yeah, exactly. And if you’ve done this, if you followed through, you were committed, right? Month after month, you throw in like say 500 in, or maybe you did a lump sum, 6,000 each year annually. You can do it either way. I think probably chunking it up might be easier to commit to, right? But you’ve made this goal. So you’re like, whoa, I’m the best, right? So normally you’d be done with this fund and you could still be done with this fund and decide that, guess what? I’m going to just now.

take some of that money and invest it somewhere else. Or you might be thinking to yourself, you know what? I’ve already got some other investments growing. Or maybe you’re looking and saying, well, mean, $500 a month isn’t as much as I should be investing. Many say investing 15 % of your income into investments per year is sort of a good goal to have. We always suggest if you can do more, that’s only gonna make your life better in the

Um, but ultimately like you can make that choice. However, if you choose this and you say, I’m going to keep this as this opportunity fund and I can take you to send that $6,000 into this participating whole life policy. And I do that for another five years. We’re not going to show the entire year by year here. We’re just going to show this growth. It’s like, when you see in year 10, all of a sudden you’re like, okay, I’ve done it 10 years. It’s easy to see that you’ve put 60,000 in.

It’s grown in value to $71,814. And the beauty is, as we mentioned back on episode 20, that a participating whole life policy is one of the safest assets out there, which means that the insurance company has contractually guaranteed to you, John, that if you want to borrow against this policy, not take money out of the policy, borrow it against. You can take money out, but…

that may trigger a taxable event. may cause the policy to now end and the compounding now stops. If I borrow against that, I can decide to take that money and I can put it into some other opportunity. That’s why we say it’s kind of like an emergency fund that’s now morphed into an opportunity fund.

but also no questions asked is the benefit of the policy loan, right? So you, you, all you’re going to do is you’re going to call up your advisor or you’re going to call up the, the, the, the insurance company who’s, you know, policy this is with and say, Hey, I want to have, you know, $70,000 of my cash value as a policy loan and boom.

they’re going to write you a check with no questions asked, which is different than saying going to the bank and asking for a loan or, you know, getting, you know, renegotiating a mortgage to pull equity from that. You’ve got now your $30,000 sitting there as your emergency fund, but now you have an extra $41,000 in this kind of opportunity fund.

Yes, absolutely. And the beauty is, that at about, know, if I continue doing this, when I hit about year 12, you hit a spot where the dividends typically, typically are high enough each year where you can literally stop funding the policy if you choose. But I’ll argue that when you get to that point, that’s where the machine becomes most powerful and you’ll probably want to continue. The only reason why you would stop and say, Hey, listen, just

send the dividends to pay the policy. I’m not gonna put any more money into this thing and just let it ride. It will just continue to compound at that four to four and a half, 5 % rate depending. It’ll continue doing all those things, but you’re losing that extra gas that you could put in the engine, right? By throwing in that extra money. So it’s actually nicer to be able to throw in more money later so that you get the benefit and you still have that access. John, you had mentioned.

They don’t ask any questions. The only thing they ask you is where do you want to put it? Right? What account do you want to put it? And you get up to 90 % of the cash value. Now, some people are like, want a hundred. Sure. You can collapse the policy. Say, listen, I just want $71,814. Send it to my bank account. No problem. No issues. The only thing they ask you is where do you want it to go? But now you’ve now sold your machine. Like the compounding machine has now been sold. You can do it all you want. You will be.

subject to tax over and above the $60,000. So you have made money here. So this now becomes an investment instead of a tax sheltered machine that upon death will pay out a tax free benefit. And we’re talking about this in a personal name. The benefits are so much better inside of a corporation as well. Not saying it’s not worth to do personally in this sort of context, but just keep that in mind is that

This is a tax sheltered machine. And the goal should be that this thing only is closed when the person whose life it is insured on passes away, right? I know that’s kind of sad to think about. You’re like, Oh man, let’s look at how this thing grows though, John. get to year 20, I put in 120,000 and now this thing’s grown to 191,000. And again, this is super safe. So

We’re not saying put all of your money in this or all your eggs in this basket, but if you want to accomplish one goal and then continue to have sort of this safe place and an opportunity fund that you can use when the right opportunity arrives, right? So you go, holy smokes, there’s this great opportunity to invest in this building over here. I could pull money from here, use that as the down payment and then take the cashflow from the building and start funneling it back to the policy loan. I don’t have to do that.

You don’t have to do that, but I would argue why wouldn’t you do it? And then ultimately at some point when you are ready to start taking money back, you can decide to start paying yourself this tax free income by leveraging this policy. So it is such a fantastic machine. And just to give people an idea of what’s possible.

All right, we’re not going to go in depth, but if anyone is curious about this strategy, I really encourage that you reach out to us over at investedteacher.com forward slash discovery. but ultimately I ran a scenario just showing like we’re not S and P guys. Like, so we wouldn’t necessarily do this, but we do use this strategy with real estate. Okay. So that’s how we do it. We just pick something. We’re like, listen, most people are probably invested, you know, in the market somehow the average rate of return is about

10.76 % over the last 50 years. That’s on average. So that means some years are way negative. Some years are way above that and it averages out. We’re just going to pretend it’s nice and smooth, even though it’s not. And in that sixth year, once that fund has been created, if I start taking all the additional available cash value and I borrow it, okay. So I take my 90 % that I can borrow. I’m going to have to pay some interest on that, right?

And I’ve accounted for that here. And those who are on YouTube, you can see this spreadsheet and reach out to me if you want it, I’ll send it to you if you want. And you want to, you know, analyze it yourself if you’re a fact finder like me, but ultimately, as you see here in the sixth year, that’s the first year I started investing in the SMP. I don’t have a ton to invest. I only have $3,700 to invest. by year two now that fund gets bigger and bigger. I, my fund now grows to 10,000.

By the time I get to year 10, which is only four years into investing, right? My five years to invest. And then I guess, sorry, another five years investing in the market. I’m up to 34,000 in that S and P 500 fund. And when I compare, if I did the same by just socking away 6,000 a year in my emergency fund, and then starting to take the 6,000 that I put in the policy and I put it straight into the market,

When I go all the way down, you’re going to notice that upon death, when this death benefit pays out tax free, I’m going to have a net death benefit that is always going to be significantly higher than if I was to just go straight into the S and P. So this is like the supercharged machine here that we have. Like I’d like to call it like super compounding because I have this compounding emergency fund.

And by the time we saved that value up, I’m now going to take that and then compound it over here in an even more aggressive compounding machine. Again, not our strategy to go into the S &P, but it doesn’t matter what the asset class is. If you compare the rates, you’re going to find something similar taking place, right? So the beauty is if let’s say I’m lucky enough to live until I’m, you know, let’s call it, I’ll say 80.

80 years old. I hope I live longer than that. The average person lives longer than that. Uh, I am going to walk out. I did this strategy consistently every year and our assumptions remain the same about the S and P 500, my, uh, net death benefit is going to be $2.3 million. If I use the supercharged strategy, whereas if I decided to just save my emergency fund and then invest the rest, uh, I would be left with 1.9.

million. So we’re looking there and the longer you go, the bigger the gap becomes. If I make it to a hundred, that would be amazing. I’d be at 15.4 and change million and doing it without the supercharge. I’d be at 14.8 million. Now that’s with one possible example. You can imagine if you’re a real estate investor thinking about investing in other alternative assets, maybe your private lending.

and you take some of that investment and you take your cashflow and put it back on the policy loan, these numbers are going to explode from here. But if this has intrigued you, I’m always geeked about it. I’m sure people can hear it in my voice. Reach out to us at investtheteacher.com forward slash discovery. And I’d be happy to run your specific scenario for you and describe some of the nuances here that you might be wondering.

Well, we hope that this snapshot of what’s possible around your emergency fund provided you a little bit of value. We hope that in this episode that you were gonna learn about how to start your emergency fund, how to make sure that it was used so that you’re not leaving money on the table, and then what vehicles we can use to supercharge it. And we hope that you got that snapshot here in this episode today. So.

Canadian Wealth Secrets is an informative podcast that digs into the intricacies of building a robust portfolio, maximizing dividend returns, the nuances of real estate investment, and the complexities of business finance, while offering expert advice on wealth management, navigating capital gains tax, and understanding the role of financial institutions in personal finance.

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