This has far more benefits. In this episode, I'm going to address the question, "What is better
than a 529 college savings plan?" When I show you, you're gonna go, "Why would
anybody ever want to put any more money into a 529 plan?" Well, I agree. You'll find out why.
So, my name's Doug Andrew and I've helped people prepare mostly for long-term goals like retirement,
optimizing their assets, minimizing taxes and so forth so they won't outlive their money,
but many people that I've worked with like to help their children or maybe their grandchildren
save for college education. Now, I have a certain philosophy about just shelling out
money for your kids college education. I required my children have some skin in the game. My wife and
I, we have 6 children. We never paid for their college, they never expected us to but we would
have matching funds. If they got a scholarship or a grant, we might give them a matching amount,
dollar for dollar or if they were able to come up with this much, we will help them or loan
them the money or what have you. But nonetheless rather than use a government 529 savings plan,
why would you want to do that if you have all these strings attached or restrictions? Let me
explain what they are and what's better. When you set up a 529 plan, basically, it's an account where
you can set aside money, of course there's limits, and the money gets to grow without paying tax,
sort of like an IRA or 401k. But you don't have to wait till your 59 and a half to access it but you must
access the money for the purpose of funding college, okay? If you don't do that, you have to pay
tax on that money. So, it's very narrow, it's only to help your children with college funding and
you say, "Well, what's wrong with that?" Well, because there are many times with our own
children and many of my clients children that they got scholarships. They worked and they
had a way to be able to get through college without having to use that money and they
wanted to use that money maybe to start their first business or to buy their first house.
You can't do that, you're gonna have to pay tax now because you didn't use it for college.
Why do you want those restrictions on the money in an account that is sort of earmarked to fund
college if you change your mind or your children don't need it for college but they could sure
use it for something else? So, people say, "Hmm, I've never thought of it that way." By the way, if you're
stocking away money in a 529 plan and you get in an accident and you die and I've seen people
that don't make it, well a 529 plan doesn't have a self-completion factor feature, something in there
that means that it's going to be blossoming instantly if you happen to die. People say,
"What are you talking about? Of course it wouldn't." Well, mine does. It's what I call the laser fund
and it has all the benefits of a 529 plan and a whole bunch more without
all the restrictions and the strings attached. So, let me show you how very successful people
will use a maximum funded indexed universal life insurance contract, which I call the laser fund,
to accumulate their money at average rates of return between 7 to 10% tax-free,
they can access that money in a time for any reason. And they can leave it behind for their
children to use for the purchase of a first home, all kinds of goals instead of being earmarked only
for college. So, let me explain it to you. If this is beginning to intrigue you, I've just gotten started,
but share this video with other people who have 529 plans or are thinking about setting
up a 529 plan, they really need to watch this video first but you know, I post an in-depth answer to a
financial question like this almost on a daily basis so subscribe. Click the little bell to be
notified because I do post something almost on a daily basis. And then at the end of this episode,
I'm going to gift you a copy of my most recent 300 page bestselling book so stay with me. Now, a
529 college savings plan is a qualified account where the government is giving you a tax break
as your money grows, you don't have to pay tax on it. I have a beatitude in my life, my family.
Blessed are the flexible for they shall not be bent out of shape, okay? 529 plans aren't flexible.
You cannot access money. I like flexibility because life is unpredictable, so as I indicated,
my favorite vehicle is called the laser fund and I want to gift you a copy of a book that will
explain this to you in more detail. But here's what I do. If I want to set aside money for goals like
college funding, I can put that into a laser fund and I can set it up to accommodate, you know, 50, 100
bucks a month, 500 bucks a month, 1000 a month, whatever I want. I don't have to put that much in,
there's no a minimum requirement. When I'm funding it, I put in the money and it accumulates tax-free.
Why? Because this is a maximum-funded indexed universal life insurance contract. You're using
a life insurance policy for living benefits, okay? You're not using that for death benefit,
you're actually funding the insurance way, way, way more than the actual cost of the insurance and
this was an idea that E.F. Hutton had back in 1980 when they designed this for living benefits like
retirement or tax-free accumulation. Why? Because for over a hundred years in the internal revenue
code, it's like a sacred tax-free cash cow. It's the only financial instrument in the internal revenue
code that allows you to accumulate your money tax-free. So, same benefit as a 529 plan, right?
You can access the money tax-free, hello? And then when you ultimately die and sometimes
people die sooner than later, unfortunately, it blossoms and transfers tax-free. So, that means
if you were stocking away $500 a month earmarked for college for your kids or your grandkids,
and all of a sudden you pass away, it would blossom into maybe a half a million or a million
dollars instantly and it would be totally tax-free. It's self-completing. A 529 plan is
not self-completing if you die. Same thing if you get disabled. People say, "How much does that cost?"
Well, nothing's free, but it doesn't cost me anything. It's being paid for with a minuscule
portion of money that would otherwise go out the window in unnecessary tax. If I put money in normal
savings accounts that are taxed as earned or even in a 529 plan if I change my mind or my children
don't need the money for college, they want to use it for something else. The laser fund, you can use
the money for whatever you want. It will not lose its tax-free status. So, it has more flexibility.
I can put in large amounts, I don't have to put in anything. I can coast, I can access money. I could
put in a $100,000 and 30 days later, I could pull out 50, 60,000. It has all kinds
of flexibility. So, people, when they learn this they go, "Why would I ever fund a 529 plan when I have
the benefits of a 529 and a whole bunch more?" Yeah, that's exactly the conclusion I've come to but do
you know the laser fund has averaged between 7 to 10% net internal rates of return tax-free
for more than 4 and a half decades? Sometimes people say, "Oh, I've never seen that. How come I've
never heard of this before?" Well, because you've never heard of it, you maybe think it doesn't exist?
Hey, I have seen thousands of these and they work beautifully for goals like college funding
but for emergency funds, for real estate management, for business working capital, for retirement. So, my
favorite vehicle is the laser fund because it allows you to accumulate your money tax-free,
you can access the money tax-free when you die, it blossoms and transfers income tax-free
and there are no strings attached. So, it's the perfect college savings plan that knocks the
socks off of a 529. So, if you would like to learn more about how this can work for you
and use it for all kinds of goals, I call it the dream solution for all kinds of goals, whether
it's college funding, retirement, emergency funds or all of those things that I just mentioned.
So, this is what I would love to gift you is a copy of this 300-page best-selling book. These have been
flying out of the warehouse. We just printed the 8th edition and it's actually 2 books in 1.
This one is about 200 pages and it contains all the charts and graphs and explanations comprising
14 chapters, that's for the left brain learners and you'll see some examples of how you can use this
for goals such as college funding. But if you learn more by stories, your right brain, you flip it over
and this one is about 100 pages, 12 chapters that give all kinds of stories and examples of how this
works. Chapter 5 of this side talks specifically about how to use the laser fund for school, for
life, for emergencies because it is the best way to be able to have your money liquid for whatever
purpose you want to use it for. Safe for market loss and in one of the safest financial industries
in the world, the multi-trillion dollar insurance industry, but earning predictable rates of return
of 7 to 10% tax-free and at the end of the day, when you pass away, because none of us are
getting out of here alive, I mean out of this life, okay? It blossoms and transfers income tax-free.
What else does that? So, click below, contribute a nominal amount towards the shipping and handling
and I'll pay for the book, I'll fire it out to you and there's options there if you want to listen
and learn, watch and learn, but this is to your brighter future as you begin to take ownership
and you control your money and you have flexibility so you won't get bent out of shape.