What kinds of assets can you reposition to an IUL? By the end of this video episode, you will understand
why you can reposition underperforming or non-performing assets to increase
liquidity, safety, the rate of return, and the tax benefits, on a lot of your assets.
So, I'm Doug Andrew I've been a financial strategist and retirement planning specialist
now for north of 48 years. You probably understand if you've watched any other educational episodes
that one of my favorite vehicles to accumulate money tax-free and then be able to access the
money tax-free and when I finally die whatever I leave behind blossoms increases in value and
transfers tax-free is a max-funded IUL indexed universal life insurance policy. And so, in this
episode, I'm going to address a question that is asked off times of my educational events
that you ought to know the answer to before you meet with an IUL specialist. The question that is
asked is, "Well, what kind of assets can I reposition or what kind of money can I put into this? Is it
only my IRA 401k money?". Because maybe they watched an episode about people who have repositioned
or done a strategic rollout out of IRAs and 401ks and they go, "Well, golly, could I put money from the
bank in here or I'm selling a rental property? Can I put some of that money in here?". Absolutely.
So, let's go through and talk about the difference between non-performing assets or group of assets
and underperforming assets and the key elements of a prudent investment liquidity, safety, rate
of return, and tax benefits. Whenever people would come to me and they would get educated at one of
my seminars or webinars or what have you. Off times they would go, oh golly, something would resonate
with them and maybe they realized that their money in their IRAs and 401ks in the market was going to
be subject to tax at some point in time and they were not going to be in a lower tax bracket. Yeah,
a lot of people come to that realization and the sooner you do the better off you're going to be.
See, the main premise for putting money into IRAs and 401ks tax-deferred is oh yeah defer defer
and get a tax break on the seed money you're putting into these the contributions. Because
later on, when you harvest your money you'll be in a lower bracket. I've noticed that most people are
not in lower brackets when they retire. If they accumulated any type of a respectable
retirement nest egg they're in as high or higher bracket as they've ever been in in their life
and so they were going down the highway with one foot on the gas pedal and the other foot on the
brake pedal. They didn't know they were doing it. They were putting money in a tax-deferred account
and then actually killing their tax deductions along the way. That's the foot on the brake pedal
paying off their house and later on the kids are gone. If you're a business owner you don't
have those deductions anymore. So, you get rid of all these deductions and even if you have
a lower income in retirement you're paying as much more in taxes and so a lot of people sort
of wakes them up and so they come and they go, "Doug, I watched some of your educational videos
and I want to do a strategic rollout", now, that's not a rollover. A rollover is like going from the
frying pan of the fire. Taking money out of a 401k portfolio and rolling it over to an IRA portfolio
and continuing to defer until you're 72 and then taking out RMDs required minimum distributions
thinking you're saving tax and I can prove to you you're not doing that. When people finally wake up
they come and they go, "Doug, I need an iul policy to accommodate the money I want to roll out of
an IRA or 401k", great and then in the process sooner or later they go, "Well, wait a minute here,
this IUL policy is going to knock the socks off of if I had left my money in an IRA 401k", as far as
liquidity, I have more liquidity. I have safety of principle, when the market goes down I don't lose.
When the market goes up I get to benefit. Yeah, I earn better rates of return tax-free. I can earn
rates of return averaging you know between 6 to 10 percent tax-free. I'd have to be earning
fifteen percent in a tax-deferred IRA 401k to net you know 8, 9, 10 percent and so they get
it and they love the tax-free benefits. So, this is called the laser test. Laser is an acronym that
stands for liquid assets safely earning returns. So, why are they repositioning their IRAs and 401ks
over to a portfolio of laser funds which a laser fund is a properly structured maximum funded
indexed universal life policy? Now, if this is already resonating with you think of somebody you
can share this episode with okay or post a comment. But be sure when you meet with an IUL specialist
that you understand some of these basic things and so many times people would come and they
wanted to reposition IRAs and 401ks to do what? Increased the liquidity of the money, the safety,
the rate of return, and the tax benefits, and so it was a no-brainer. But then they would go,
well, what if I have some money other places? I go, yeah. They had their blinders on. They
were only looking at the IRA's in 401ks. So, people say, "Well, can I put other money in these?",
I'm going absolutely. Because when you take it out of an IRA or 401k a qualified plan you're putting it
into a non-qualified plan so to speak. So, you can put money from anywhere into an IUL policy.
So, this is where we start looking at people's non-performing or underperforming assets. So, what
are those? You wouldn't believe how many people would come and I would start looking at their
assets and they might have $100,000 sitting in a bank or credit union earning
under one percent interest, they're rowing upstream of the rate of one mile an hour and the current of
inflation is coming down at three, four, five, six, seven, eight, they're going backward okay and I go,
what is that money earmarked for? I remember one woman had about a million bucks in the bank.
Well, what's that earmarked for? I was thinking about going on a trip.
I went where to the moon? Yeah, you know, sometimes people just don't realize where they can have
their money and where actually the bank had her money. Banks and credit unions if you watch other
episodes will take a portion of your money that you put in the bank and they'll turn around and
put it into insurance companies to increase the liquidity safety and the rate of return, okay.
So, just bypass the middleman. So, many times people will reposition underperforming assets
ones that are only earning one percent in a bank or credit union and put it over into IUL
to increase the liquidity, the safety, the rate of return. Sometimes people say, "Well, is it really more
liquid?", well, you're thinking the bank or credit union has a drive-up window that that means
liquid. No, that's convenience. You could actually access your money out of an insurance company
easier and more safely than you could out of a bank when the economy takes a nosedive. Banks
can actually stall you for up to six months if they want to on your money inside of a bank.
Sometimes you have underperforming assets that are earning very pathetic rates of return. Sometimes
people go, "Well, I have this rental property and I actually hate being a landlord", hey, I understand.
I'm more of one that sort of buys real estate and fixes up and flips it. I hate being a landlord
taking out the trash, fixing toilets, evicting tenants, and so sometimes people get tired of being
a landlord doing that stuff and so they want to sell. But they don't know where to put the money
that they're gonna net out of the sell of the property or maybe they're gonna get an inheritance
or a settlement because somebody hit them with their car and they're getting a couple of hundred
thousand dollars whatever it is. So, if you have an impending amount of money coming from the sell
of a piece of property or an inheritance or a settlement these are just lump sums
you can take that money and an IUL policy can accommodate it. An IUL professional can help you
comply with TEFRA, DEFRA, and TAMRA guideline. So, you don't bugger up tax-free access later. But
see, those would be assets that you may come in to in the next few years but it would be who view
to make room for it now and sort of get the clock ticking on the TEFRA, DEFRA, and TAMRA guidelines.
Because when you finally have the money you can throw in a big amount in one fell swoop instead
of starting from the moment you have the money and then having to spread it out over five years.
If you don't understand what I'm talking about be sure and check other episodes to talk about those
those tax citations TEFRA, DEFRA and TAMRA. So, the answer to the question is what kinds of assets?
Basically, any kinds of assets, underperforming. In other words, you're trying to increase the
liquidity, the safety, the rate of return, and the tax benefits. Maybe you want to get your money
out of the volatile stock market and put it into indexed universal life because you don't want to
lose when the market goes down. Which you will not lose during market downturns due to that crash
in IUL. But you will participate when it goes up. So, a lot of people reposition money because they want
to get it out of the volatile market. They want to create more predictable cash flow income rates of
return. Some want to get the taxes over and done with and convert to tax-free sooner than later.
Others will use IUL to make sure that they have more liquidity in the event of a real crisis in
this country. So, the point is this. It doesn't matter whether it's an inheritance, a lump sum,
a settlement, proceeds from the sale of property, or money sitting in a bank, or money in IRAs and 401ks.
If you want to optimize assets a properly trained IUL specialist will look at your assets
and basically ask you if you're happy with the rate of return, the safety, the liquidity on where
your money is, and anything that you think you want to increase liquidity, safety, rate of return, on the
tax benefits on. They can show you illustrations to accommodate and optimize all of those assets and
you can establish what I call a family bank with your IUL policy or you can have several policies.
Does that make sense? So, in summary, maybe youhave 100,000. You want to transfer out of
banks and credit unions. Maybe 200,000 out of IRAs and 401ks. Maybe 200,000 out of a rental home that
you're selling. So, the total of that would be 500,000 or maybe you want to set up an IUL policy to
accommodate 500 bucks a month or eighty three hundred and thirty-three dollars a month.
That's 100,000 a year or maybe a lump sum of 100,000 a year, it doesn't matter.
You can put in monthly deposits, annual deposits, lump sums, and IUL policy can accommodate
assets that you want to reposition to increase liquidity safety rate of return and tax benefits.
That's why I wrote the book The Laser Fund. This should be your textbook laser liquid
asset safely earning returns. These four pillars are liquidity safety ready return and tax benefits
and as far as I'm concerned, nothing else passes these tests with higher scores than a properly
structured maximum funded IUL policy. So, if you have not claimed your free copy of this book be
sure and do so by going to laserfund.com or click on the link below. You contribute a nominal amount
towards the shipping and handling. I'll cover the rest of that cost but I'll pay for the book and
fire out a copy to you. There's also options there for you to listen and learn watch and learn and
you can even schedule an appointment with an IUL specialist that I actually sort of authorize that
I have trained that knows how to implement these correctly. So, this is to your brighter future.