The fifth of five ways to stack up an extra million bucks. In this episode, I'm going to
address how to become your own banker to make 100% returns. Get ready, it's going to blow you away.
So, my name's Doug Andrew and I've been helping people optimize assets and minimize taxes prepare
for a comfortable retirement so they will not outlive their money now for more than 48 years.
But in this episode, get ready, because I'm going to give you a sneak preview right now. I'm going
to talk about how to become your own banker and do what banks do to make 100 percent rates of return
up to 500 rates of return yep and then my favorite instrument which I call the laser fund and how
that can predictably double your money probably every seven and a half years based upon my actual
history of using this instrument ever since 1980. And as you do that, I'm going to show you a concept
of safe positive leverage which is the ability to own and control assets with very little or
none of your money is tied up at risk in that asset. Leverage without liquidity of stupidity and I'm
going to explain that to you and then by doing this you'll be able to do what banks do borrow
even your own money at a lower rate and continue to earn a hundred percent or more
on that money that you borrow and you use it for your business. But you will accumulate
millions, not just 1 million. You do this for 15, 20, 30, years and you will end up
like many of my clients with over 10 million extra dollars by learning how to become your own banker.
So, let's start with the milk, and then we'll get to the meat what do banks and credit unions do what
does the multi-trillion dollar insurance industry do. They're the backbone of america by the way.
If you're not aware in the great depression there was a lot of real estate that dropped 80 percent
in value. Banks closed 40% never reopened again. The legal reserve insurance companies in
the great depression all came through with flying colors not one went under in the great depression.
It's because they have to have reserves on hand that are liquid and safe in case of a run on their
institution and so in 2008 when over 400 banks in America because of the mortgage meltdown if you
remember this. There were 400 banks in America that went under. 900 more were on the brink it's called
the watch list going under. The federal government was concerned. Now, a lot of americans don't realize
how close we came to a total financial collapse in 2008. So, the federal government asked the five
major banks in America to disclose where they had their tier-one assets for liquidity and safety.
Guess where they had it? In insurance companies and these insurance companies maybe just credited them
a four or five percent this is in 2008. So, let me tell you what was happening. Banks in 2008 were
borrowing OPM other people's money. Meaning, when we put money into a bank or a credit
union it's in a lended position. Are they just a benevolent institution paying us interest? No.
They're loaning it back. They are investing it. But they said that we put 30 to 40 percent of it
for liquidity and safety into insurance companies, they're bigger they're stronger. See, some of these
insurance companies where I have my money manage trillions of dollars. In fact, one has as much money
as the IRS collects in taxes in an entire year and that's just one insurance company. This is where
many governments go to for help when they need it is to the multi-trillion dollar insurance industry.
So, I just bypass the bank put my money where the banks put it. But what were the banks doing? They
were paying let's say one percent. Now, one percent every million they borrow at one percent interest
or that they pay one percent interest to us. On an annual basis they're only paying out 10 grand.
They turn around and put that million in insurance companies and earn five.
That's what they were doing in 2008. How much more is five than one? Don't say four, it's five hundred
percent is five times. They were paying 10 grand and they were earning 50,000 on that money. Would
you hire an employee for 10 grand that may do an extra 50 grand? Would you buy a widget machine for
10 grand that made you an extra 50 grand? You bet. That's called a 500% return on employment costs or
equipment cost, business owners get this. So, that's what banks and credit unions do. Now, you can become
your own banker. So, my favorite instrument where I bank my own money is in a max funded indexed
universal life insurance contract and in other episodes on this channel I talk about how to take
the least amount of insurance the IRS will let you get away with and put in the most money the
IRS allows and it turns into a tax-free cash cow. Where I have averaged I earn 11 and I need 10.
I've actually earned an average of 9.62 percent on my, I call them laser funds ever since I began
owning them clear back in 1980. Now, before I go any further, if this is already arousing that curiosity
be sure and post a comment, click like, share it with somebody. But subscribe to this channel
it's free and I post a new educational video almost on a daily basis. So, here we go. Let's say
that you get it and you begin to sock away money. In other episodes on how to stack up a million
bucks I talk about just systematic accumulation. You could stock away 5,000 a month for 120
months and you'll have a million dollars tax-free in the laser fund. Let's say you put in 250,000
and then added a 2,000 a month and you did that for 10 years, you'll end up with a million bucks.
You can rent out an apartment on Airbnb for 7,000 a month which is 350 bucks a night and
your mortgage might be or your rent might be two thousand. You suck away that five thousand. You're
going to end up with a million dollars. So, let's take that snapshot in time because I have many
many clients that I've mentored that end up with at least a million dollars or more. So, far so good?
So, let's take that snapshot in time. You now have one million in your laser fund, your max funded IUL.
Now, here's what savvy smart business owners do. They operate as their own bank. Now, listen very
close. Stay with me here. You have a million dollars and now you see an opportunity. Now, I have many
clients that invest in real estate. So, I'm going to use an example of one of my clients that
his specialty is to find multi-unit apartment complexes that the seller just wants out. They're
tired of being a landlord, fixing toilets, they're beating tenants, and so forth, and
they don't want to even fix up the property, they just want to liquidate it. So, he finds
those properties and he buys them and he fixes them up and then he turns around and flips them.
He doesn't like to be a landlord himself either. So, just like somebody that buys and flips houses by
fixing them up he buys big apartment complexes and fixes them up and then flips them because he has
a pool of investors that want to buy apartment complexes that are fixed up and have good cash
flow. So far so good? He comes across one and it could be golly 10 million, 15, 20 million. Many
times he needs an earnest money. So, he will call me up and he'll say, "Doug, I need a million dollars
to tie up this piece of property. Send me over that form", now it's one page. I email it to him and
he has his laser fund his IUL policy and he puts his name and his policy number which is like an
account number and then it says, "Would you like to withdraw a million out of your policy or would you
like to borrow?", what do you think he does? He's smart he borrows. See, if he withdrew the million
now he doesn't have the million in his policy earning interest. That's okay, he can do that.
He doesn't have to pay tax when he withdraws it but he is a business owner. He's savvy. So, he
borrows and people go why would he borrow his own money? There's two ways he can borrow. The first way
is called a zero wash or zero cost loan. He can tell the insurance company, "You know, I think
we're headed for a recession. So, I will borrow a million", and in order for it to be tax-free
the insurance company has to charge him at least a nominal interest rate. So, that might be two percent.
So, the insurance company is charging him two percent a year which is 20 grand but
he doesn't have to write out a check for 20,000. That loan is not doing payable during his lifetime.
Because the insurance company is crediting on that collateral that million in the policy
the same two percent. So, he borrows it to they credit to it's a zero watch loan it doesn't cost
him anything to call it a loan and that's what qualifies the million to be tax-free. But he's
savvy. Usually, he will use the index loan like I do. Now, what's an indexed loan? By the way, if this is
going wow be sure and subscribe to this channel. This is just the tip of the iceberg folks. So,
he goes for the index loan which means okay you can charge me four percent or five percent of my
million. Why would you want to pay four or five percent to borrow a million out of your policy
when you could just be charged two? Because the million that is still in your policy because you
didn't withdraw it yeah, it's just semantics. You're borrowing by having your million as
collateral and now you're saying, "Okay, you can charge me five percent", he did this in 2017. He
borrowed a million out and they charged him five percent. What's five percent on a million? That's 50
grand. He didn't have to write out a check for 50 grand. Because they credited him the indexed rate
that year on the million that he left in the policy. Guess what he earned in 2017? He capped out
on his universal life at 25%, 25% on a million was 250 grand. Are you with me? They deducted 50,000 out
of the 250,000 he earned he netted 200,000 dollars of growth on the million in his policy
tax-free. He netted twenty percent return tax-free on his policy while he was using the million
to acquire an apartment complex that he fixed up and he sold and he made two or three million.
Is this blowing you away? This is how many savvy people accumulate millions of extra dollars by
accumulating in a laser fund tax-free and then becoming their own banker and borrowing money.
I don't care if you borrow money at five and you earn ten. How much more is ten than five? A hundred
percent. Would you hire an employee for fifty grand that made you an extra 100 grand? I do that all day
long. That's actually been the average is earning 100% more than the cost of borrowing out of a max
funded IUL. Some years you may not other years you may make 25%. As of the recording of this episode
last year in 2021 we had clients on their indexed universal life lock-in gains of 61.33 percent.
Yep, so let me just give you one other little aha here. Let's say you borrowed a million out of an
IUL policy at five percent and you could earn 10%. But what do you do with a million? Let's
say you go out and buy five rental properties and you only pay 20% down on each of those.
So, the rental properties now are being rented out for double what the interest payment is being charged.
So, you got this positive cash flow and you're getting some tax breaks because you're able to do
that or maybe you went to a mortgage company and borrowed it. You can leverage safely but maintain
liquidity by putting it into the IUL. So, you can take that and pay it back into the IUL policy
and you can actually end up putting money back into where over just a period of 10 years or so
you can end up with an extra 5.75 million bucks by borrowing on your IUL leveraging safely on
property and then taking the cash flow putting it back into the IUL and you're still earning
money on the original balance that was in there because you leveraged on your IUL. If your brain is
going "whoa" you need to read my book. So, here's how you can claim your free copy. This is book number
11 and it's been flying off of our warehouse shelves. It's 300 pages it's called the laser fund.
Laser is an acronym that stands for liquid asset safely earning returns. This will teach you how to
diversify and create the foundation for a tax-free retirement and you'll learn in here and on this
channel how you can accumulate an extra million bucks all kinds of different ways. But this is the
working capital account that most savvy investors use. Simply go 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. I will pay for the book. I'll fire out a hard copy to you. There's options there to listen
and learn, watch and learn, and also masterclasses 18 hours. You can also register to attend webinars
that we teach because I'm passionate about helping people like you optimize assets and minimize
tax. So, claim your free copy, read how other people do this. This will help you achieve
financial independence far safer and faster than most Americans do by following the herd putting
their money in tax-deferred IRAs or 401ks in a volatile market. That is unacceptable to me.