- Reposition nonperforming or underperforming assets
to increase liquidity, safety, and rates of return tax free.
In this episode, I am going to give you some examples
and stories of how to optimize assets and minimize taxes
using max-funded IUL,
my favorite financial instrument, bar none.
(upbeat music)
So I'm Doug Andrew.
I've been a financial strategist
and a retirement planning specialist
now for more than 48 years.
I've been so blessed and honored in my lifetime
to have authored 12 books thus far,
many have become national bestsellers.
One, a New York Times, Wall Street Journal
number one bestseller in 2007,
it was called "Last Chance Millionaire".
And in all of my books, I'm very passionate
about helping people understand how money works,
and how to optimize assets, minimize taxes,
and empower their authentic wealth
so that they can achieve their long term goals
and not outlive their money for retirement
or working capital for business or real estate management
or colleagues funding for their kids and grandkids
estate planning, charitable giving all kinds of goals.
And if you watch very many educational episodes
on this 3 Dimensional Wealth channel
which I would recommend you subscribe, it's free
and be sure and click the little bell there.
So you'll be notified every time I post a new video
which I do almost on a daily basis
but if you watch very many of these
you'll begin to understand my favorite financial vehicle
by far to accumulate money, serious cash.
You don't wanna jeopardize losing,
totally tax free, income tax free
and then be able to access that money
including all the gain income tax free.
And then at the end of the day
when you finally pass away, when you die,
anything left behind blossoms,
increases in value and transfers Income tax free
is a max-funded index universal life insurance contract.
And if you structure it correctly and fund it properly
it qualifies to be called what I deem a LASER fund,
LASER is an acronym that stands
for Liquid Assets Safely Earning Returns, okay.
And at the end of this episode, if you'll stay with me
I'm going to gift you a copy
of my most recent bestselling 300-page book
called "The Laser Fund."
So stay with me here.
So let me talk about how IUL works index universal life.
When I would meet with thousands of clients
throughout the years, they would come in
after getting educated and they would realize
that where they had their money following the herd,
so to speak, putting money in the company's 401k or in IRAs
because they didn't know any better was maybe a good way
but a far cry from the best way to say.
And it wasn't until they came and got educated.
And of course I have a little diddy
that goes good, better, best, never let it rest.
Never let it rest till good gets better
and better gets best.
So many times I would say, well an IRA or 401k
may be a good way to go
but it's a far cry from the best way to go.
Well, people say, "Well, what's the best way to go?"
What's a better way.
Well, a better way would be a Roth IRA or 401k,
because if you think that taxes in the future
will likely be higher, which most people do,
'cause of irresponsible government spending
and the printing of money,
I can prove to you that a Roth IRA or 401k
will outperform a traditional IRA or 401k
where you would outlive your money, you would lose, okay.
And outlive your money with the same amount of money
because if you think taxes are gonna be higher
in the future, it would be better to have a Roth.
And then I disclose I've never owned an IRA
or 401k, never will.
That doesn't surprise very many people.
But then I say, I've also never owned a Roth, IRA or 401k
and I never will and they go, really?
I go, "Yeah. Why would I?"
Roths only have two benefits, okay?
They accumulate tax free
and you can access the money tax free.
You fund them with after tax dollars, okay.
Now a max-funded IUL policy has been around a lot longer
than Roths, Roth were introduced in 1997.
Max-funded IUL has been a sacred tax free cash cow
in the internal revenue code, section 72E, 7702,
and 101A that allows you to accumulate money tax free,
access it tax free like a Roth.
But when you die it blossoms and transfers income tax free,
Roth don't do that.
And it's been doing that for over 108 years, okay.
And so it also has some additional benefits
I can put in huge lump sums if I structure a LASER fund
a max-funded IUL to accommodate two or 300,000 a year
I can put that much in you can't put that much in a Roth.
If I put in only 30,000, I can make up the other 270,000
anytime I want you can't do that with a Roth.
If you don't use the room in a given year, you lose it.
But if I put in 300,000
and I needed to go grab four days later, 200,000, let's say,
I can do that out of a LASER fund.
You can't do that with a Roth.
You have to wait five years until you're 59 and a half.
There's all these strings attached, okay?
But Roths do not allow you to grow your money
by using indexing where you get to benefit
when the market goes up but not lose a dime
during the market downturns or crashes, okay?
'Cause most people have their money in the market
and they lose.
With indexing your money is not at risk in the market.
And then at the end of the day, as I mentioned,
Roths don't blossom when you die.
If I died tomorrow in an accident
every million I might have in a portfolio
of LASER funds would double to about 2 million
in transfer tax free to my wife, my kids, my grandkids
at church, or a charity, whoever I wanna leave it to
there's not a Roth around that will do that.
And naturally people go, "Well, 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 our money
that would otherwise go out the window
in unnecessary tax if I follow the herd
and put money in like IRAs or 401ks or even Roth, okay.
Now let's get back to stories
of how I would help these people.
So they would come in after learning this
and they'd say I want one of those LASER funds.
Well, then I begin the process
of analyzing the underperforming or non-performing assets.
And if they didn't know they would tell me all their assets
but many times they already figured out
what they wanted to reposition.
So let me give you three general categories
that happen over and over and over again.
People would come in and they'd go, oh my heavens,
we have a hundred thousand dollars sitting in a bank
or a credit union for our emergency fund.
This knocks the socks off of the bank or credit union
and it's been sitting there for years, earning less than 1%.
We could be earning 5, 6, 7, 8, 9% tax free
on our emergency funds.
And I, we can access the money just as readily
or more readily in the event of a major catastrophe
in America, by having it in an IUL policy,
instead of at the bank
where they can stall you for six months if they need to
from giving you your money.
Most people don't realize that.
Yep, if I were you, I would only keep maybe 60, 90 days
of income on hand of the bank.
And then say, well, let's reposition
a hundred thousand over here to the IUL policy, okay.
And then I'd say, what other assets?
And they'd say, well, you know,
we've been hanging onto this rental property
but it is like an albatross around our neck.
We hate being a landlord, fixing the toilet,
evicting tenants, taking out the trash,
and we're just tired of being landlords.
But if we sell it, we're gonna have to pay a capital gain.
I go, well, I got news for you.
It would probably be better to pay
the capital gain tax today at the lower rates
because it looks like tax revenues,
as of the recorded of this episode, you know,
Joe Biden has been very interested
in getting rid of the step up
and basis on long term capital gains
and doubling the capital gain tax rates.
So if that's where they're going
it would behoove you just to bite the bullet,
pay the capital gain and take the net after tax
and put it into an IUL policy.
And so many times people would say, oh yeah
we're gonna get probably a net out
of about $200,000 after tax out of this rental property.
We didn't know what we were gonna do with it.
And we don't wanna be a landlord again
and jump from the frying pan into the fire.
And I'd say, "Well, let me accommodate it
into this IUL policy."
And they go, "I don't have to be a landlord anymore?"
"Nope." And they were actually shocked
when they saw that it would generate greater growth
and net spendable income at the end of the day
than the rental property, okay.
And so that would be another 200,000
and then they would go, you know, Doug,
we're now 60, 62 is not gonna be a 10% penalty
if we access money out of our IRAs of 401ks
but the money's in the market.
And when we heard you talk about,
hey, the last place you want your money when you retire
is in your tax deferred IRAs of 401ks
and continuing to defer to your 72
and then starting RMDs,
Required Minimum Distributions, yeah.
For most Americans that's the worst advice I've ever heard.
You're delaying the inevitable.
You are procrastinating paying tax
and you're actually not saving tax.
You are compounding it and if you do the math
we have a software program that shows you
the amount of tax you'll pay by deferring till you're 72.
And then taking out RMDs Required Minimum Distributions
to avoid the 50% penalty if you don't take it out.
A lot of people don't know there's a 50% penalty
by the IRS on top of the tax
if you don't start accessing money
out of IRAs of 401ks, yeah.
They want that money out and taxed before you die.
So they can tax you again when you do die.
And so this software shows people
how much they're gonna pay in tax by stringing it out
to their life expectancy and their spouse's life expectancy.
And then it passes down to their kids.
And now those children have to get the money out
and pay the tax within 10 years.
They can't turn it into their own IRA or 401k forever, okay.
And so they realize, you know what
it'd be better to just bite the bullet, pay the tax
in today's lower rates, reposition it into a LASER fund.
So that might be 200,000.
So let's just use that simple example.
We have a hundred thousand we're repositioning
that's underperforming in a banker credit union
earning less than 1%.
We wanna increase the liquidity, safety,
and ready return on that money.
We're taking, let's say a couple of hundred thousand
out of a rental property.
So you don't have to be a landlord anymore.
And we're gonna put that into the IUL policy strategically.
And then we also have a strategic rollout
maybe over a five year period from those IRAs and 401ks
getting the taxes over and done with sooner to later
and reposition it into something
that's gonna be tax free from now on.
And oh, by the way, when you finally do die,
it will blossom and reimburse you
for the taxes you did pay by many fault, okay?
And so they go, this is a no brainer.
So that would be a grand total of $500,000.
So a properly trained professional
will then structure a strategic plan
to be able to accommodate that 500,000,
it's called the guideline single premium
and calculate the minimum amount of insurance
based upon IRS rules.
These are acronyms they're TEFRA and DEFRA
based upon your age and gender and health.
You're taking the least amount of insurance.
The IRS will let you get away with
and you're putting in 500,000
and then you wanna put it in as fast
as the IRS allows, okay?
And so under TAMRA, the most we could put in
would be about 100,000 a year for five years.
And now we've complied with TAMRA.
And now I have repositioned in five years
500,000 of underperforming or non-performing assets
to do what, increase the liquidity,
the ability to access my money.
If it's in the apartment complex
I have to wait and sell it or refinance it.
I can access money now really easy
with a phone call, if I need to.
I'm increasing the liquidity, the safety dramatically, okay.
The rate of return usually dramatically
and it's totally income tax free.
And at the end of the day it will blossom
and transfer tax free when I die.
It's a no brainer.
And so this is what I mean
when people come in to optimize assets
they reposition underperforming or nonperforming assets.
And we've done this with people for a million, 10 million,
or more where we are simply asking them
what assets do you want to increase?
The liquidity, the safety and the rate of return
and the tax benefits and let's structure
an IUL contract, a LASER fund
to accommodate that transition
so that you can accumulate money safer, better, smarter,
and not outlive your money.
And when they see the effects over 10, 20, 30 years,
they realize it's double, triple, or greater
what they would've had, had they kept their money
where it was at before they met us.
Does that make sense?
So if you wanna read stories about this
and see actual examples
I wanna gift you a copy of my most recent bestselling book
that's been flying off of our warehouse shelves.
It's called "The Laser Fund".
This will teach you how to diversify
and create the foundation for a tax free retirement
but also how to use a LASER fund
which is a property structured maximum-funded IUL policy
to be used for all kinds of goals, emergency funds,
working capital for business and on and on and on.
And so here's how you can claim your free copy.
Don't go to Amazon and she out $20 or more
I will gift you this book.
And it's 300 pages, 200 pages is this side
which has the charts and graphs.
But if you're a right brain learner
you can turn it over to this side.
And this is 100 pages 12 chapters
with 62 actual client stories.
If you wanna read both that's 300 pages
but this will become like your reference manual
to optimize assets and minimize taxes.
And as you do this, you'll be able to read and learn,
but there's options when you go to laserfund.com,
that's L-A-S-E-R fund.com or click on the link below
you contribute a nominal amount
towards the shipping and handling.
I cover the rest of that.
I pay for the book and fire it out
but you can also get audio and video if you want.
And also check out some of the online educational webinars
and you can even request an appointment
to see how these strategies can apply to you
by talking to an IUL specialist.
So be sure and check all of that out
but this is about you and your brighter future.
(upbeat music)