who is the ideal candidate for a max-funded IUL policy? In this video, I'm going to explain some
powerful concepts and by the end of this video you will understand how IUL can be the dream solution
for so many financial goals like retirement, college funding, working capital for business,
or real estate, emergency funds, estate planning, pension maximization for school teachers or
police officers. You're going to be blown away. So, stay with me I'm going to show you
and give you insights into opportunities that maybe you didn't know existed before.
So, I'm Doug Andrew and I've been a financial strategist and retirement planning specialist now
for north of 48 years and so my goal is always to help you be able to see a brighter future.
So, as you proceed to learn especially with these educational videos. I want you to sort
of compare your life like to this magic coloring book right here. I want you to sort of wipe out all
preconceived ideas or what you've always thought or been taught. Because I want you to not miss out.
So, let's say that this is your book of life and I'm asking you right now to sort of suspend
your disbelief and withhold justifying why you think you can or cannot change or do something
and be open-minded to new ideas that may even seem a little bit counter-intuitive.
So, I want you to wipe it all out and so it's just like this coloring book that's just blank, okay. But
as you watch each educational video you'll begin to see opportunities in your life that maybe you
didn't realize existed before and so your book of life now will begin to have images in the physical
arena, spiritual, financial, emotional social and so forth. So, it's going to look like this one
right here that has all these images in it. But it won't be until maybe you have watched 20 episodes
that you begin to see in full living color your life filling in in a dream
future where you will not outlive your money for example. So, then your book of life will
look like this one that's all full of living color pictures. That's my goal for you in this episode.
So, you'll find that max funded indexed universal life can be designed to accommodate people who were
20 years old. In fact, I put it on my children when they were born but for young people that want to
start socking away money for their future goals like retirement or college funding for their kids
and all the way up to age 80. Now, the sweet spot for me is helping people that have sort of
made mistakes in their life financially maybe following the herd. Putting money into traditional
accounts like IRAs and 401ks. Deferring tax to some future perceived unknown advantage and they
usually go, "Well, I'll be in a lower tax bracket when I retire, right?", and they get there and they're
not. So, I'm usually trying to correct or cure a financial dis-ease because when you're not at ease
physically that's called disease. But when you're not at ease financially you have...
sort of a financial dis-ease or tax dis-ease so I like to cure those. But I'm going to show you
here that it doesn't matter what age you are. Don't rule yourself out and this can be used for
people in their 70s, it's never too late. But let me give you just a glimpse of some of the best
solutions that max-funded IUL can solve. Now, before doing this as I go through be sure and share this
educational episode with somebody who you think would benefit or post a comment so that we can
respond and we want to always be able to provide value. So, as we look at this often I've referred to
IUL as a financial swiss army knife so to speak. So, it has a lot of different tools or blades in it.
So, when we look at this financial swiss army knife it becomes the dream solution for many
financial goals such as retirement planning, death benefit. These are usually the two primary
ones because people come and they want to protect their family in the event of an untimely death
or an accident and that's just simply being responsible and accountable and so as we do this
people then can determine how much insurance they want for protection and also they're socking away
money for living benefits. Because IUL or universal life was originally designed back in 1980 for
living benefits not just the death benefit. But death benefit can be one of the objectives and
then stock it away money to accumulate it tax-free and then be able to access that money tax-free and
when you die it blossoms and transfers tax-free. It increases in value that's what I mean by blossom
and transfers income tax-free. So, these are two of the biggest benefits, most people will come
to us to look at indexed universal life. But what are some of the other solutions?
We also can use it for college savings funding for your kids, for your grandkids. I mean,
In my opinion, it knocks the socks off of a 529 college savings plan, it has way more flexibility.
If you save money in a 529 plan you can only use it for college funding. What if your children get
a scholarship and they want to use the money to go start a business or to buy their first home?
They would have to pay tax. In an IUL you don't have to do that and also if you happen to passed
away as a parent your children will still have the funds available tax-free to go to
college even if you don't stay around to save that. That's the beauty of the tax-free death benefit
but there's more. We have a lot of business owners that use max funded iul as a working capital
account, where they keep their money, accumulated that they can access on a tax-free basis
to use in their business and become like their own banker. They fund it, it's their
working capital. Why would you put money in a bank at less than one percent when the money in an IUL
has more liquidity safety and higher rates of return and it's tax-free and you can access that
money with an electronic fund transfer or a phone call, okay. So, working capital for business but also
real estate investors use this. Because I know many people who own real estate and when they're
using that money and they're getting rental income they put that rental income into their IUL policy
and then when they buy another property or what have you they can take money out and be able to
secure a new property with an earnest money or what have you and then as that begins to
produce income they put the money back into theIUL policy it's like being their own banker but
they're earning tax-free compound interest and of course on the real estate, the savvy ones know.
If they take out a mortgage they are paying a lower interest rate that's tax-deductible.
If they borrow at four and a half percent tax deductible it's a net cost of three percent in
a 33% bracket and many IUL policies average like nine. That's three times as much as they
pay in interest. So, a lot of savvy real estate investors use IUL as their working capital
account. What else? Well, an emergency fund. You know, I notice a lot of people will have 10,000
50,000, 100,000, or more sitting in a bank or credit union as an emergency fund.
Well, do you know you can bypass the middleman? What do I mean? Banks and credit unions put 30-40%
percent of their tier-one assets into insurance companies in instruments like this to increase
the liquidity and safety on the money you put in their bank. You're actually lending them your money.
So, just bypass the middleman and increase the safety by usually six notches higher, the liquidity,
and the rate of return by maybe 4 or 5 times by using an iul policy as an emergency fund.
Maybe a lump sum transfer of capital that you get from an inheritance or in a settlement or
maybe you sell a piece of property or what have you. It can accommodate lump sums estate planning
if you're wanting to use it to also take care of creditors upon your death or maybe estate taxes
or simply to set up your family bank which is what we do in our family and you can learn
more about that on other episodes. What are some other uses? Pension maximization. In other words,
if you were a school teacher retiring they will try to convince you to buy the most expensive life
insurance policy in your life by saying don't you want to share this pension of let's say
5,000 a month with your spouse in case you happen to die? Well, yeah. Well, okay, well then you'll just
be able to take 4,000 a month let's say instead of 5,000. So, you're giving up an
extra thousand bucks a month to be able to if you pass away first to have your spouse continue to
get that the rest of their lifetime. Well, you could take that difference of a thousand a month
and you could put it into an IUL policy and you'll have way more flexibility and when you die
it will blossom and leave behind far more money. But you can change beneficiaries
if your spouse happens to pass away before you do. That's why you're maximizing the pension
way more than what most states offer. Also, it's general tax reduction. So, if you have money
trapped in IRAs and 401ks and you're thinking I'm going to keep deferring and taking RMDs
rethink your thinking. You may want to get that money out faster sooner than later get the taxes
over and done with and reposition that money into something that's going to be tax-free from now on.
So, in summary, what I'm talking about here is sometimes we look at a product like baking soda
and we go oh, what can you do with this? And when I ask audiences what are some uses?
The women usually say, "Well, you can soak in the tub or take the odor out of the refrigerator", and
the men usually raise their hand and go, "Well, I clean my battery terminals with that".
Finally, somebody goes oh it's good for baking. Yeah, well see, life insurance is for life. Most
people think of it as just for death. So, as you begin to explore this don't focus on what it is
focus on what it does. Does that make sense? So, in a nutshell, hopefully, you're interested
in looking into an IUL policy because we have three big dangers in America in particular that
cause most people to actually outlive their money in retirement for example. Taxes going up.
Inflation which cuts the purchasing power of the dollar in half. Right now, about every five to
seven years and we have market volatility because of the uncertainty in the market. We eliminate
those dangers using IUL. So, in a nutshell, the three greatest opportunities with indexed universal life
is you convert to tax-free. Then it doesn't matter if taxes go up because your money is tax-free.
You link your returns to the things that inflate and so watch other episodes to understand how
you can actually outpace inflation by using indexed universal life and you also eliminate
the downside, the losses but you get to participate in the upside the gain years by using
indexing because your money's not at risk in the market. That's the beauty of IUL and of course the
three greatest strengths of an IUL policy are number one liquidity. The ability to access your
money when you need it safety of principles so that whatever you set aside you will not lose due
to market downturns and any year you make money that becomes a newly amount of protected principle.
You will not lose in future years money that you made in previous years if the market crashes.
And number three, you earn predictable rates of return tax-free. So, that's the beauty behind it
and I would recommend if you have questions make sure that you take advantage of studying the book
the laser fund. You can claim your free copy by simply going to the laserfund.com or click on the
link below. You contribute a nominal amount towards the shipping and handling and I'll cover the
rest of that and I want you to look through and understand with charts and graphs and explanations
how a laser fund can help you diversify and create the foundation for a tax-free retirement.