How many people earned 61.33% return in one year? In this episode, I'm going to address
how to make good rates of return with no downside risk. Get ready, this is going to blow you away.
So my name's Doug Andrew and I've helped many many people optimize their financial assets
throughout their entire lifetime to prepare for a comfortable retirement but also minimize
taxes. One of my favorite vehicles where I recommend that most retirees have 40
to 60 percent of their retirement assets or income come from is what I call the tax free bucket. Yep,
totally tax-free that would not include IRAs and 401ks those are only tax-deferred. So,
my favorite vehicle I call the laser fund. A laser is an acronym that I've used for years that stands
for liquid assets safely earning returns. Now people say, what is a laser fund? Well,
a laser fund is a properly structured and properly funded indexed universal life insurance contract
that is designed primarily for living benefits so that when you earn a return like I have let's say
of 11% you're netting 10% cash on cash. It is the best internal rate of return of any financial
product I know out there and I'm even talking about some of the asset management fees that
many asset managers charge which might be one percent a year and if you do the math if you
started out with a half a million and that grew to four million, eight million. Many times clients of
ours uh started out with a half a million and it doubled to a million in maybe seven and a
half years and then it doubled to two million and then doubled the four million and doubled to eight
million after 30 years. Now, if an asset manager did that that would be an average return of about
9.62%. But during that time period, they would have charged you in fees just under 1 million.
So actually, I like indexed universal life because it is the least expensive the fees on that are
usually one-tenth of what an asset manager will charge you at the end of the day and so sometimes
you get critics that say, "Oh, I've never seen an indexed universal life policy returned much
of anything", well I'm about to share with you how many people locked in gains of 61.33%
in one year from March of the year 2020 right after the Covid19 pandemic started and the market
crashed and one year later using what is called the annual point to point with no cap strategy. So
get ready and I'm going to share with you how that works and how people were able to achieve those
rates of return. At the end I'm going to show you how somebody made over a half a million dollars
in one year on an $800,000 investment. Now, before I go any further I'm going to explain
the annual point to point with no cap strategy which many clients of ours. Because the financial
advisors that I point my students to will go to these advisors and many of them will diversify
maybe up to 40 percent of their money that is inside an indexed universal life insurance policy
to this strategy and it was really unique in 2020 to 2021 because whenever you have a crash that's
an opportunity. Okay, when there's anxiety there's opportunity to link using this particular strategy
and I'll show you how people benefited from this strategy with rates of return that most people go,
"What? I've never seen a universal life policy return 61%", well some people got even 2.7 times
that number and I'll explain that in another episode. So if this is already intriguing you
I would recommend you subscribe. Click like post a comment subscribe to the three-dimensional wealth
channel. Why? Because I have over 500 educational videos and I post at least five new videos
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and stay with me to the end because I want to gift you a copy of my most recent 300 page bestselling
book called the laser fun. Let me explain a one year annual point-to-point with no cap.
When you're using indexing and I have other videos that explain indexing if you're not sure what that
is. But you're telling the insurance company to link your returns to an index of your choice
and let's just use the s&p 500 even though there's all kinds of indexes you can choose.
But the most common is the standard poor's 500. If you use a regular annual point-to-point
with a cap you're telling the insurance company, "Oh, I feel bullish about America this year",
unless they have a million dollars of cash value in the policy at the beginning of the linking
period and it could be any month of the year. But for example, let's say November the year 2011
I linked with mine because it was an election year okay and we had an incumbent president
Obama running for a second term and I've seen in history that whenever an incumbent is running for
their second term they do all kinds of fiscal and monetary policy to make the economy look vibrant
dynamic and growing so they'll be re-elected. So I knew my chances were better than not that the
economy would grow more than just the five percent interest that the insurance company will pay me
if I just leave it there and don't link it to an index. So, I linked mine November and one year
later in November of 2012 right after the election sure enough the economy had grown but they capped
me and so back then the caps were up around 16%. Even though the economy grew more than that they
capped me what's the trade-off? Well, if I guess wrong and the economy crashed because a terrorist
attack or something. Instead of losing 20 30 or 40 percent I wouldn't have lost a dime of my million
my principal's safe. It's safe in the insurance company. I didn't allow the insurance company to
invest my million in the s&p only the interest on my million. Which at that time was five percent or
fifty thousand they bought upside options in the s&p. If the market had crashed the options would
have expired worthless but my million would still be safe. Does that make sense? I relinquished the
for sure five percent when I linked. This is a safe way to participate in the market when it goes
up but not lose when the market goes down. Now, the difference between an annual point to point
with a cap and a no cap is the insurance company they might charge a threshold or a spread and so
that could be five percent it could be 10%. that's typically the range. So what that means is there
is no cap. In other words, whatever the s&p does they must pay you the increase in that one year
point to point. So let's use the example of that crash that happened in the year 2020 March when
the market dropped down more than 30 percent a lot of people panicked it was because of Covid19.
Most of our advisors told their clients use the one-year point-to-point with no cap strategy
link and so they did and so their money and their insurance policy whatever was in there whatever
portion you don't have to link all of it. They linked from March of the year 2020 to March of
2021. Well, what was the increase a year later? Well, from the bottom of where it crashed until
a year later the increase was 66.33 percent , 66 percent. So, how come they only got 61.33
percent? Let me explain. When you use a strategy like this there's usually a threshold or a spread.
So, if there is no cap the insurance company because of the price of options and how they
manage this will subtract five percent maybe up to ten percent off of whatever the return
actually was. From March of 2020 to March of 2021 the market went up 66.33 percent. The spread or
threshold for many of them was 5%. So you take 5 off of the 66.33% and the net credit was 61.33
percent in one single year for the people who linked when the market went down. So you normally
don't have to worry about the volatility because when you use indexing you make money whether the
market is going up or down because it just has to be doing this. But when the market goes down
that spells opportunity when there's anxiety in the market that spells opportunity and so my sons
have many hundreds thousands of clients between the two of them and they told many of them link.
Use the one-year point-to-point with no cap strategy and several of them in March
of the year 2021 got their statement for the money that was linked during that 12-month period
and they netted 61.33% increase. Let me share with you the exact numbers
for one of those clients and what that meant they made over a half a million bucks in 12 months on
their indexed universal life policy and so many naysayers critics go I've never seen an IUL
policy do that. I'll show you a statement right now, you ready? So, this is an actual statement
we've removed the client's name for privacy of course. But this client in march of the year 2020
in his indexed universal life insurance policy his value at that point was 872,786.85
to be exact okay and my son said link to the annual point to point with no cap strategy because
of the crash due to Covid19. One year later from the bottom of March 2020 to March of 2021 that
when the market recovered it was a 66.33 increase. There was a five percent threshold spread so the
net was 61.33% it's right here. Guess what that was? On 872 000 he got credited 535,313.34.
Over half a million bucks in one year. His ending balance in March of 2021
had gone from eight hundred and seventy two thousand up to a million three hundred and eighty
seven thousand four hundred nineteen dollars. In an indexed universal life insurance policy. We had
many people experience the same gain maybe not to that magnitude others did but most of them maybe
don't have that much money in their accounts. Maybe they had three or four hundred thousand they
got the same rate of return. The point is where else could you achieve that and still protect
yourself. So that if the market had continued to nosedive they would have not lost one dime of
their 872 thousand the zero is your hero. Because you don't lose the options expire worthless.
But because you linked and you went to the no cap and you said you can charge me five percent.
Even if they charged you 10% you would have netted 10$ off of 66 you would netted 56%
return on your money in one year. Not bad, is that worth it? So, how could you learn more?
So folks, that's just one of the many strategies that's called an annual point to point with no
cap. Search this channel for other strategies like the two year the five-year participation rates.
There's all kinds of variables and if you want to diversify you diversify into superior strategies.
Diversification isn't having some of your money in some bank or credit union earning less than one
percent interest, that's not diversification. In fact, you can increase the liquidity and
safety by diversifying with superior vehicles like this. If you want to learn more how to do
this for yourself? I want to gift you a copy of my most recent best-selling book. Now, this is
called the laser fund how to diversify and create the foundation for a tax free retirement okay
and it's 300 pages it's actually two books in one this side is 200 pages 14 chapters
with all the charts and graphs if you're a left brain thinker. If you're a right brain thinker
you can flip it over this is 12 chapters 100 pages with 62 actual client stories
of how people use the laser fund not only for retirement but for all kinds of financial goals,
emergency funds, working capital for your business, real estate management,
all kinds of things. College funding this knocks the socks off of a 529 plan. If you like to use
both your right brain and left brain I would read both books but you don't have to pay $20 on
Amazon. You go to laserfund.com click on the link below laserfund.com contribute a nominal amount
towards the shipping and handling. I'll cover the rest of that cost. I'll gift you a copy for free.
There's also options there if you'd like to listen and learn or watch and learn
and you can also subscribe and be notified when we teach educational webinars on specific
topics that will help you optimize your assets. Here's to your brighter future.