No IRS penalties, no tax, and no need to time the market. In this episode, I'm going to
answer the question. How easily can I access money out of an IUL policy? That's an indexed
universal life policy. You're going to be blown away with how easy this is.
So, I'm Doug Andrew, I've been a financial strategist and retirement planning specialist now
for more than 48 years and I've been around the block. In fact, some call me the the godfather of
IUL and whatever. Because I began using universal life when it was first introduced in 1980. Because
I used to be prior to that I started in 1974 and I had over 3,000 clients I was responsible for
in 13 western states and I was a big proponent of bite term invest the difference and
EF Hutton actually created universal life. It wasn't whole life. It wasn't term but it was
actually how to buy term and invest the difference under a tax-free umbrella. So, it's like buy term
and invest the difference on steroids and a lot of agents still don't understand that here
today. But in this episode, I'm going to address how easily you can access money out of an IUL
policy and a lot of people don't understand the term liquidity. So, this is going to teach you
that when you need to access money for an emergency, a business opportunity, whatever.
The procedure is actually much easier than most people think especially the general public. So,
if you are a licensed insurance agent selling IUL listen very close to how you can explain accessing
money out of an indexed universal life policy. So, when you need to access money out of your
IUL policy and sometimes people have been funding it as fast as the IRS allows under the
TAMRA tax citation. So let's say they have a policy that will accommodate a guideline
single premium and if you don't understand that term it's explained on other episodes and so
if you wanted to set aside five hundred thousand, dollars, a hundred thousand, a million, you know
that if that's the guideline single premium. If you put all that money in all at once
since the TAMRA law was passed in 1988. If you go to access money it's gonna trigger
tax and it's gonna be taxed LIFO, last in first out. You're gonna have to pay tax just like
you would if you were accessing money out of an IRA or 401k. Now, there won't be a 10% penalty but no
most of my students and clients they wanted to access money without triggering tax that's
one of the benefits of IUL. So, if you were putting in let's say a hundred thousand a year
and in four years and one day you finally got all of your 500,000 in. Now you've complied with TAMRA
if you were you know let's say a 60-year-old and now you have 500,000 in there and if you
earn the rates of return that I've earned averaging in that seven to ten percent range.
That half a million uh will double every seven to ten years to a million, a million doubles to
two million, two million doubles to four million, four million doubles to eight million and I've
actually had clients who 30 years ago started out with a half a million and they have eight million
today, okay. Anywhere along the line if they need to access money they know to just call me and I
send them the form. I just email them a one-page form with that particular insurance company and
it's very easy across the top they just write their name and their policy number which would be
like an account number and then there's usually two choices boxes that they can check. One says,
would you like to withdraw some money and they put in the amount. So, let's say, they have a half
a million in there and they want to withdraw a hundred thousand. Do you want to withdraw
or would you like to borrow a hundred thousand? Now, what do you think most people check? Borrow, because
they've learned how to do it the smart way. Now, be sure and check out another related episode to this
because I address three ways to access money out of an indexed universal life policy, the sad way,
the dumb way, and the smart way. The smart way is by borrowing instead of withdrawing money
and you'll understand why. But the point is this, it's one page. Most of my clients without me having
to remind them. If not, then I remind them on why the borrowing method is the smartest way to do it
and they just check the box. They sign it and they put down the address to send the
check to or the account number if they want it wired. If the insurance company allows that
and unless the address is different than the one on the insurance companies records they don't need
to verify and sometimes I've been able to arrange for an electronic funds transfer but most people
will just wait until the check is sent to them and you can request that it's overnighted and what
have you. But it is that easy to be able to just access money and if you use the loan provision
it's not like applying for a loan at a bank or credit union where you have to apply and then
wait to be approved and they check your credit and you wait two, three, four, five, six, weeks to
get approved and then get money out. See, when you access money out of where most Americans have
money accumulated IRAs and 401ks. What happens when you access the money? You have to pay tax
otherwise, you have to arrange for a loan and then you must get on a schedule instantly of paying
that loan back or else the employer is required to report that as income and you have to pay tax
if you're under the age of 59 and a half there's a 10 penalty on top of the tax. That is not usually
what people want to incur when they access money out of an IRA or 401k. Same thing if you have money
in a mutual fund or stocks or bonds if you access money sometimes you have to time the market and if
the market's down it's not a good time to sell. You want to sell high not low okay and so
that's why in IUL policy is usually the absolute best way to access money for an emergency. It's the
ultimate emergency fund in my mind. But how easy? It's one page and you simply fill out name, account,
or policy number, and check the box on how you want to access it via a withdrawal or a loan you sign it
and if it's going to the same address on record but that's it, they verify. Now, there's fraudsters
out there that'll try to do that and that's why they check the address to make sure it's going to
the proper person. But even if there are fraudsters who try to do things usually the insurance company
is very sharp in catching that and that's why they'll trace it and what have you. Let me
connect the dots on why this is such a powerful tool when you need to access money for any reason,
a business opportunity, a real estate deal, or just a flat out emergency that happens in life, a major
car repair, or anything. Now, if this is intriguing you, I'm not done here. But listen,
subscribe to this channel. It's free and when you do click the little bell and then you'll be
notified every time I post a new video which I do almost on a daily basis and I don't want
you to miss out. But if this is resonating with you be sure and share this video with somebody.
Post a comment, click like, but stay with me to the end because I want to gift you a copy of my most
recent 300-page best-selling book called The Laser Fund. Let me give you an example of several times
when I've had clients who have accessed money and I have a very sophisticated client. He's a real
estate investor and he usually buys these huge apartment complexes and he will find those that
are distressed that need to be fixed up and the seller just wants out they're retired or whatever
and so he makes it a win-win. He doesn't buy the property for himself. He buys the apartment complex
maybe for 20-25 million or whatever and he buys it and he fixes it up and then he flips it and he
sells it because he has a whole pool of investors who want apartment complexes once they've been
fixed up and he just makes the money on just like somebody who buys and flips houses. So, many times,
he will call and say, "Doug, I need a million dollars out of my IUL policy", because he has several
million and I'll say okay and I send him the form. In fact, now he just says email me the
form or I've still got a copy of it. He puts his name, his policy number, at the top of the form and
then he checks which box withdraw or borrow. He always borrows so be sure and watch the episode on
why this works? But let me just give you a sneak preview. So, in 2017, the market was up. He borrowed
a million dollars out of his policy. Why would you borrow your own money? Well, because he wants to put
it back. If you withdraw it sometimes you're restricted on putting it back. But why would
you borrow and pay interest? He can borrow at zero a net cost he could borrow at two percent
and they'll credit him two percent. But instead, he borrows and says, you can charge me 5%.
So that year they charged him five percent on a million on his statement, that's 50 grand. Why
did he borrow? Because it was an index loan he understands this. That year he got credited 25%
on the million that he did not withdraw it's still sitting there. It was the collateral that
the insurance company used to let to loan him a million using the million he had there.
So, he earned 25% on his million that he did not withdraw. That's $250,000 of tax-free interest
and they subtracted the $50,000 loan fee and he netted 20% or 200,000 of growth on his IUL policy
while he was using that million in his business to make a lot of money flipping apartment complexes.
This happened again in 2021. We had people borrow money at five percent out of their policies and
they earned 32 percent some even earned 61.33 percent on their cash values in their policy while
they were using their money for other purposes. Does that blow you away? It ought to. So, in summary,
money in an indexed universal life policy in my mind is way more liquid than money trapped in IRAs
and 401ks that will sometimes require that you pay tax and even penalties to the IRS or money
trapped in the market because then you have to time the market. I don't have to worry about
that. I borrow the money out and I keep earning interest on the cash that I did not withdraw
and this is how money works. So, if this is intriguing you, I want you to learn
more. So, I'm going to gift you a free copy of my most recent best-selling book and you'll read
stories and examples of how people use IUL for all kinds of purposes but what one of the
big reasons is because it's so liquid. This is my 11th book it's called the laser fund
and it's actually 300 pages two books in one. This side the white side has 14 chapters 200 pages
with all the charts and graphs and explanations of how to diversify and create the foundation for
a tax-free retirement or other goals. If you learn more by stories you flip it over and read this one.
This is 12 chapters 100 pages with 62 actual client stories and all you need to do is
click on the link below laserfund.com go to laserfund.com. You contribute a nominal
amount towards the shipping and handling and I will fire out both of these in one book
to you and uh you contribute a nominal amount I will pay for the book and then there's other
options in there to listen and learn watch and learn. But check out some of the educational
courses that are in there especially retire by design. You can attend virtual classes of that
we hold on a periodic basis. Don't miss out. This is your key to a brighter future with more liquidity.