My insurance isn't free but I'm not paying for it. Uncle Sam indirectly is. In this episode,
I'm going to show you how to redirect tax to pay for your life insurance.
So, my name's Doug Andrew and I've been helping people optimize their financial assets,
minimize taxes and empower what I call their authentic wealth now for more than 4 and a
half decades. And as I teach you how to redirect otherwise payable tax to causes you support like
having insurance being paid for with otherwise payable tax, at the end, I want to gift you a free
copy of my most recent bestselling 300-page book, it's called The LASER Fund. We're going through
hundreds of these books every 2 days. And so, I want you to claim your free copy. So, stay with me
and I want to enlighten you on why I think this is so important for you to be able to accumulate,
access, create tax-free income. And when you ultimately pass away, let it blossom and transfer
tax-free to your heirs. It is what I call the Laser Fund. So, I started in 1974 and I helped
many, many thousands of clients. In fact, by 1980, I was responsible for over 3,000 clients
in 13 western states. And I began to show them how to be able to redirect taxes to cover themselves
for life insurance so that in essence, Uncle Sam indirectly was paying for their insurance.
How do you do that? Now, nothing is free but I don't pay for my insurance. But first of all,
I want to make sure you understand that we don't object to insurance
benefits, do we? See, I've never had a widow or a widower turn down an insurance check. I've never
delivered a million-dollar death benefit and had a widower or widow say, "Oh, no. Thanks,
I don't need the money." No, we don't object to the benefits. We object to paying for it. In fact,
if your employer came to you and said, "Hey, we've had a banner year. We're going to offer
some additional benefits for everybody." Free life insurance. How much would you like?
As much as I can get. Yeah. See, we don't object to insurance benefits, we object to paying for it.
Now, if I can redirect otherwise payable tax to get insurance at no cost to me, I'll take as much
as I can get. Does that make sense? So, why is life insurance tax-free in the internal revenue
code? Well, it's been a sacred tax-free cash cow for over a century. 107 plus years to be exact.
And it's because when people insure themselves so that if they happen to pass away in an untimely
death, they want to leave behind the wherewithal to allow their spouse, their children to continue
with the same goals, music lessons, education, so forth that they would have provided had they
stayed around. And so, the government says, "You know what? This is taking pressure off of us as
Government to provide welfare benefits and so forth." And so, we will not tax life insurance.
Not only on the death benefit but also on the money that grows inside of an insurance policy
if it's a permanent life insurance policy. So, it will accumulate tax-free with the interest in the
dividends. And if you want to use it for living benefits, it takes pressure off of the government
to have to help out people with social security, benefits, and what have you because people outlive
their money. And so, they've allowed it to be sort of a sacred cow where if you accumulate
money inside of an insurance policy, all of the growth is tax-free, you access the money tax-free.
And when you ultimately die, it blossoms in value and transfers income tax-free. Nothing else in the
internal revenue code does that. So, we use it more for living benefits than for just the death
benefit. And this was actually the brainchild of EF Hutton. Clear back in 1980, they were not
an insurance company. They were a brokerage firm let me share with you what happened back in 1980.
But before I do that, if this is intriguing you, be sure and share with somebody who might also
appreciate watching this education. Click like, subscribe to the 3-Dimensional Wealth YouTube
channel. I post an in-depth answer to a financial question almost on a daily basis. And stay with me
to the end because I want to gift you a copy of my most recent 300-page bestselling book.
So, clear back in 1980, basically EF Hutton said, "You know what? Instead of trying to have people
make money in the market even though they were a brokerage firm, golly, you know the market goes up
it goes down. For conservative people, why don't we just bypass all of that volatility and have
people put money into insurance companies?" Because the multi-trillion dollar insurance
industry is not only the backbone of America but the backbone of the world. This is where
governments go to for help when they get into trouble. This is where one insurance company that
I put some of my money in manages as much money as the IRS clicks in taxes in an entire year.
This is where banks and credit unions take your money that you deposit in the bank. See, when you
really think about it, there's only 4 things you can do with money. You can spend it, you can lend
it, you can own with it or you can give it away. But when you put your money in a bank or a credit
union or an insurance company, it's in a lended position. Have you ever thought about it like
that? You are loaning them your money. Are they just a benevolent institution paying you interest?
No. It doesn't sit in some vault. What do they do with your money? They loan it back out again at
higher rates than they're paying you. But do you know where banks put 30 to 40 percent of their
tier-one assets? That's money they have to have on hand liquid and safe in case of a
major catastrophe, a run on the banks. In 2008, the federal government asked the 5 major banks in
America to disclose where they had their tier-one assets for liquidity and safety. It was in
insurance companies. Oft times in BOLI, B-O-L-I which stands for bank-owned life insurance. What?
Yeah, banks own life insurance. On who? Their boards of directors, their stockholders, whoever.
It's the owner of the insurance policy that gets all the tax-free growth and tax-free income,
okay? Banks own these. Do you know where corporations put a lot of their money?
COLI, C-O-L-I. Corporate-owned life insurance contracts because it's the only instrument in
the internal revenue code that allows you to accumulate your money tax-free
under section 72E ever since 107 years ago. You can access your money tax-free under section 7702.
And when you ultimately die it blossoms and transfers tax-free. Nothing else does that. So,
a lot of people who are savvy, they use it for living benefits. Long story short,
for the last 4 and a half decades, I've been earning rates of return between 7% to 10 and
11 percent. Probably averaging 9.6. Now, if you earn 9.6% your money will double about every seven
and a half years. So, I've had many people who started out with a hundred thousand and a double
double, double, double. 500 thousand. 500,000 doubled in 7 and a half years to a million.
Another 7 and a half years, in the fifteenth year, it was worth 2 million. In another 7.5 years of
the 22nd year, it was worth 4 million. And in the 30th year, it had doubled again to 8 million. Yep,
people started out with $500,000 in their insurance policy, they have 8 million now
generating between 640,000 to 800,000 a year of tax-free income. I think of one couple in
California that has that much and they only need 300,000 a year. But they're earning more
than double that. They will never outlive their money. But a lot of their friends and family
members chose to keep their money in traditional IRAs and 401(k)s and they will likely outlive
their money because it's being eroded away with taxes and now inflation and market volatility.
With indexed universal life, you're able to participate when the economy goes up the markets
are up but not lose when it goes down because your money is safely tucked in the insurance company.
And you can link your return to what the market does without your money being at risk
in the market. You need to understand how this can benefit you. So, how does all this come together?
Your money can double every 7 to 10 years based upon historical averages, I can't guarantee that
in the future. But based upon the past. Golly, it doesn't matter what you begin with. You can stock
away 500 bucks a month and in 30 years, you'll have a million-dollar nest egg that can generate
70 to 100 thousand a year of tax-free income. My 2 sons co-authored a book with me Millionaire By
30. How to have your money earning more than you do by age 32. If you understand how to do that,
your money can be earning more than you do by age 32 by following these principles. But see,
my favorite vehicle I call the Laser Fund which is a max-funded indexed universal
life insurance contract. So, when we connect all the dots here, I've been earning many years 11%
netting 10. 10 netting 9. If I earn 11 and net 10, what's that 1%? It's the cost of the
insurance that the IRS says has to be there or it will not be tax-free. It will move from
tax-free insurance in the internal revenue code over to taxable investments. A different section
of the code. No. I want to be sheltered under the tax-free umbrella of insurance. So, I have to
have insurance attached but it's not a cost when I look at it. Nothing's free. See, that 1% would be
money that I would be shelling out in unnecessary income tax if I had my money in IRAs and 401(k)s.
I would have to be earning 15% in a tax-deferred IRA or 401(k) to be able to net 9 or 10 percent
after paying the tax at the end of the day on my IRA and 401(k) distributions.
But the sad thing is most people's money in IRAs and 401(k)s in retirement is only earning about
3.5 to 4 percent. You pay tax on a 4% payout, a million-dollar nest egg in IRAs and 401(k)s
giving you 40,000 a year of retirement income before tax, you're netting 3% after tax, 30,000.
Max-funded indexed universal life, if you earn 10 and net 9, you're earning 9% net.
Uncle Sam is paying for the insurance under that illustration. It's not free but I'm not paying
for it. How much more is 90,000 a year of tax-free income than 30,000 a year out of an IRA or 401(k)
portfolio after tax? iI's 3 times as much money. it's 300% more. If this is intriguing you,
would you like to learn more? I'd love to gift you a free copy of my most recent best-selling book.
We're sending out hundreds of these almost daily and I don't want you to miss out. So,
if you go to Laser Fund, LASERfund.com or click below on this link, you contribute a
nominal amount towards the shipping and handling and I'll cover the rest of that cost and I'll
pay for the book. I'll fire it out to you. And there's also other options in there for some of
the other books if you like to learn. You can use the audio version if you like to listen and learn.
There's even an 18-hour masterclass that we teach this in depth. Because this will teach you how to
diversify and create the foundation for a tax-free retirement. And how to have uncle sam pay for your
insurance indirectly by getting better rates of return and having a minuscule portion of money
pay for the insurance that would otherwise go out the window in unnecessary tax. Does that
make sense? Are you on board? Get on board by studying and becoming empowered with knowledge.