- Hi, Doug Andrew here.
Welcome to this episode in the series,
Does IUL Really Work?
Yeah, our goal here is to give you examples
of actual indexed universal life insurance policies
that have been structured correctly and funded properly,
because when they are,
they can perform as a superior capital accumulation tool
for goals like retirement,
or maybe college funding for your kids and grandkids,
working capital for business, real estate management,
all kinds of financial goals.
That's why I call
a property structured index universal life policy
a LASER Fund.
LASERs an acronym that stands
for Liquid Asset Safely Earning Returns.
So I have with me here, my son Emron,
he's one of the top IUL specialists in America.
He's also a co-author with me on many books.
When you watch very many of my educational episodes
or read our books,
you will discover that my favorite financial vehicle
for long term goals is a max funded IUL.
But it must be structured correctly and funded properly
so that your money will accumulate tax free.
You can access that money income tax free,
and when you finally pass away,
it blossoms and transfers income tax free,
under three sections of the internal revenue code.
Now, if you don't know about all of that,
there's educational episodes.
The purpose of this video is for Emron
to show you an example, because we have people that say,
well, this sounds good,
almost too good to be true,
do you have an illustration of actual policies
that have actually performed?
Yes, we do.
We have naysayers that say, well,
I've never seen one actually perform
like the agent illustrated.
You're about to see one that outperformed
what was illustrated.
So Emron, take it away
with this client who designed this policy, what,
about 12 years ago?
Is that about right?
- Yeah, it was,
it was back in 2010, 12 years ago.
- And he's gonna show you what happened,
and then I'm gonna come back on
and help you claim your free copy of "The Laser Fund book",
if you wanna study more
about what he's gonna illustrate,
so take it away. - Thank you.
(upbeat music)
Well, again,
excited to be with you again here today.
And going over yet another actual case study here,
where I meet this client back 12 years ago.
He's in sales and looking at wanting to make sure
he saves for his own retirement.
He was contributing to his 401k plan,
trying to get a match with his company.
We helped him stay balanced, he still has this 401k,
but he was able to start this IUL LASER Fund
to be able to have a balanced retirement approach
where he's got tax free money, not just taxable money.
So he's got some taxable and some tax free funds in here.
And we originally illustrated him putting
money in for the next, you know, 10 years.
So if he's putting money in for the next 10 years
into this life insurance policy, 10,
11 years, then he was looking at retiring.
And he actually did retire last year, so right on schedule.
We were gonna go 11 years, retire.
He did that a year ago, we're 12 years into the policy,
and he can now start taking out income
whenever he needs or wants.
He hasn't needed to take out any money outta
this insurance policy as of yet, but he knows he can.
And the great thing is we originally illustrated him
with a projected growth rate of 9.5%.
And what I wanna do is I wanna look
at the current policy statement.
So this is the current policy statement
as of right here, we look at this,
is as of May 25th, 2022.
Okay, and he started this back in May of 2010.
As we look at it, he has averaged actually 9.74%,
compared to the 9.5% that we were actually illustrating,
the maximum illustrated rate at 9.5%,
he's actually been able to outperform
that by almost 25 basis points.
But not only, that we've been able to get
some other internal things in there,
getting the cost to be able to reduce on this policy,
by making sure the cash grows,
and as we grow, we reduce the expenses.
We do that by making sure over here,
he's got a $550,000 death benefit, okay?
So he is got originally a $550,000 death benefit,
he passes away, his wife and his children
are still gonna get $550,000.
But because, as we teach in the LASER Fund
really the theory and the strategy behind here,
and if you wanted to be able to give yourself the potential
to have these same kind of results,
you need to follow the strategy.
If you step outside of the strategy
you can't expect to have these kind of results.
But if you follow the strategy, you'll set yourself up
to have the opportunity to have these kind of results here.
And so he's got currently right here,
just shy, I mean,
he is only $600 shy right here of $300,000.
So he basically has $299,417.74.
So essentially he's got $300,000
inside this insurance policy.
If he were to die,
his kids are still gonna get that 550,000,
which means he self-insured himself for $300,000.
That $300,000 is now part of that 550,000,
which allows him to only be paying for, realistically,
a $250,000 life insurance policy.
So we've been able to significantly reduce
the mortality cost on this insurance policy,
and we continue to reduce it
as this 299,000 does continue to grow.
We've had him diversified over the years,
he's had, you know,
even currently right now,
he's got $17,000 in the fixed account right now.
He's got 7.91%, or sorry,
he's averaged 7.91%, but then he's got $43,000,
or 14%, in the one year account.
He's got $143,000
in the one year high cap account right here.
He's also had, or he's been able to get 28% returns
on the one year no cap.
And he's been able to average 11.66% on the five year.
And the great thing about the five year
is I haven't even actually earned interest,
we're still waiting until this August
to get interest on this $94,000.
So with it growing to 299,000 and averaging that 9.74%,
I haven't even actually finished earning interest
on that 94,000 yet.
And if we get another average or return of 11%
on that 94,000, it will easily bump that number up
to over 10% average, potentially this August.
And he's definitely very much looking forward
to seeing that.
So that's where it's at.
If he needed the income, out $299,000 right now,
if he wanted take out tax free,
he could take out a maximum policy loan of up
to $298,000, giving us the liquidity,
right, when Doug talks about the LASER Fund liquidity,
we've got the liquidity inside of this IUL here.
And we did that by making sure we followed the strategy
and maximum funded.
Now, originally his projection
looks something more like this here.
So he started again here at age 59,
year one right here, this was in 2010.
His premium schedule is looking like that right here.
Okay, so I'm gonna go ahead and zoom in on that.
So he was looking at putting in just shy of $40,000,
$39,933 in year one, year two,
and then he was dropping it down to $14,000 a year
going into the insurance policy until year 11.
And then after year 11, he was retiring,
which he did do, he retired last year on year 11,
and he can start taking out income if he needs or wants to.
But after that, he was supposed
to have $255,000 after 11 years.
Okay, 255,000, 269,000,
I'm just gonna kind of highlight
some of those numbers in right there.
So after year 11, he is supposed to have 255,000.
After year 11, he's supposed to have 269,000,
and right here, you know
we actually have $299,000 right here.
Instead of having 269,000, we have 299,000.
Like I mentioned, I haven't even actually earned my interest
on that five year account until this August.
Once I get to this August, it will even go above $300,000,
just 12 and a half years into this life insurance policy.
At the end of 13 years, he would have 283,000.
At the end of 14 years, he's supposed to have $297,000.
So realistically we're two years ahead of what we projected
for him 12 years ago.
So 12 years ago when I told him, you know,
you'll be at 269,000.
He's actually at $299,000 at that exact same period of time,
which he wasn't supposed to hit until year 14.
And that is the potential and the power of what is possible
inside of an IUL, giving this client the freedom
and the ability to be able to retire with even more funds
and resources, just shoring up his financial future
even more so than when we had started with him.
And again, to be able to pursue this,
if you want to give yourself the opportunity
to to have these similar results,
or get close to what your illustration is showing,
or you want to be able to hit that,
follow the strategies that we teach
in here on how to structure and fund an IUL correctly.
When you do that, you create a LASER Fund,
and just like this client here, 12 years later,
he is enjoying this money and other monies
in his retirement for the rest of his life, tax free.
- So thank you Emron for illustrating this.
This client has gotta be super happy?
- Oh, absolutely.
- Probably not his entire retirement,
but a great supplement to be able
to not only achieve what he was intending to achieve
by the 14th year, but do that in the 12th year.
And you haven't even added in probably
the extra 10 or 15,000 he'll get
at the end of the five year strategy, so he's way ahead.
Which also means that with that 300,000,
he doesn't need the money,
but he could probably start a payout of 25,000,
or even close to 30,000 a year, tax free,
for as long as this account lasts,
if it continued to earn the average of 9-9.75, correct?
- Correct.
- Especially by using some of the index loans
or where he's able to use a participating loan
and borrow with a lower rate
and earn a higher rate on the cash value.
- Absolutely.
And I didn't put in here,
this is actually one of three policies he has,
so he actually has three policies that are all very similar,
they all have over $300,000 in them.
So he actually has closer
to a million dollars for his retirement.
- So anyway, hopefully you're seeing,
yep, IUL really does work.
And we have many, many clients where maybe we under promised
and we're over delivering, which we love to do.
So if this is intriguing you and you want to learn more,
and you have not claimed your free copy,
you can go to Amazon and pay 20 bucks,
but I want to gift you a copy of this book.
It's flying off of our warehouse shelf.
So don't miss out,
you simply go to LASER Fund, L, A, S, E, R fund.com
or click on the link below.
You contribute a nominal amount towards the shipping
and handling, have some skin in the game.
I'll cover the rest of that, and I'll pay for the book.
I'll fire out a copy to you, there's options there also
if you would rather listen and learn or watch and learn.
We also have educational events we do on a regular basis.
But if you wanna talk to an IUL specialist
like Emron about how this can be designed
for you for your brighter future,
please take advantage of picking their brain
and having them run some illustrations for you,
because we would love to under promise
and over deliver for your brighter future.
(upbeat music)