When is a person too old to benefit from a max-funded IUL? By the end of this video
episode, you will understand that the most common demographic that utilizes IUL are those people
that are actually ages 55 to age 75 even up to age 80. Even if they're not in the best of health.
So, I'm Doug Andrew, I've been helping people optimize assets and minimize taxes now for
north of 48 years. I've been very blessed to have authored 12 books my most recent is called the
laser fund. It's been flying off of our warehouse shelves and in that book I talk about my favorite
financial instrument indexed universal life and why I think it's the financial swiss army knife
that has so many uses. It's the dream solution for all kinds of financial goals
such as retirement planning or college funding for your kids and grandkids,
working capital for business, maybe for real estate management, emergency funds, pension maximization,
if you're a school teacher on and on and on. And so, when people begin to learn about how to accumulate
access and transfer their money totally tax-free in a properly structured and maximum funded IUL
which I call a laser fund, okay. Laser is an acronym that stands for liquid assets safely
earning returns. Because you're putting money into an IUL policy to increase the liquidity,
the safety and the rate of return, and the tax benefits. And so, it's my favorite vehicle
for retirement and other goals to be able to accumulate access and transfer your money totally
tax-free. Many times people will say, "When is a person too old to be able to use this?", because
many audiences people go oh and they begin to rule themselves out. In fact, it's really sad.
A lot of people go to events and they'll hear something and they immediately begin to justify
why they can't do what you're talking about. It's just sort of amazing they start to make up excuses
and this is one of the biggest ones, "Well, I'm too old", I go, really? How old are you and they go,
"Well, I'm 70", I go you're the perfect age and they go, really? I go, yeah, I'm 70 and I am yeah and I don't
color my hair. Everybody goes he colors his hair, no I don't. But see, it doesn't matter how old you are.
You probably would have a hard time getting one if you're over 80. But see, the sweet spot
for many of our clients is ages 55 to 75 and you wouldn't believe how many people in that
demographic go, "Oh, I'm too old, right?". I should have done this when I was 30. Well, yeah, it's
sort of like when people say, "Hey, when's the best time to plant a tree?", and I go, "Well, 20 years ago".
But the next best time to plant a tree is today sooner than later. Yeah, if you were 25 or 30 and
you started an IUL policy and you started talking away 500 bucks a month 30 years ago. Yeah, you'd
have a million bucks today tax-free. But you know a lot of times 30-year-olds don't know about it or
they think they know it all and whatever but they don't have the money. Later on after people have
made mistakes several times and now they know they're getting close to retirement and they
realize that there's three big dangers that will cause them to outlive their money. What are those
dangers? Taxes, inflation, and market volatility. Now, a property structured maximum funded IUL policy
will eliminate those dangers because it's tax-free. it doesn't matter what taxes go to your money's
tax-free in an IUL policy. Number two is you link your returns to the things that inflate by linking
to indexes or an index and so if inflation goes to 10 you'll likely earn 15 or higher. I've always
earned a rate of return of about five and a half percent or higher than the inflation rate at any
given time and you can watch other episodes on how it works, okay. But then you have market volatility
and indexing allows me to benefit when the market is going up but not lose when the market goes down
and my money is not invested in the market. My returns are linked to an index the market
without my money at risk in the market that's called indexing and you'll understand how to lock
in your gains and reset every year. So, you never lose in future years money you made in previous
years. That's the incredible beauty behind a max funded IUL. So, when people go golly this sounds
wonderful but golly, I'm 60. item 65 it's too late for me. I go, no it isn't. It's the perfect time.
So, what do I mean by this? In the episodes, that I record to educate people like you
I talk about how it became the brainchild of EF Hutton clear back in 1980 and it was EF
Hutton that said, "Hey, let's take the least amount of insurance that the IRS will let us get away
with and put in the most money the IRS allows", you're coming in with a backdoor approach. You
have a certain amount of money you want to save 500 a month, 100,000 a year, 500,000 whatever and
you're trying to create a policy to accommodate the money that you want to set aside so it grows
tax-free and you can take out all the growth tax-free down the road. And so, the IRS dictates
the minimum amount of insurance that's required. Those are tax citations called TEFRA and DEFRA.
If you don't understand them make sure you watch episodes that address those. So, you take the least
amount of insurance you put in the most money the IRS allows as fast as they allow that comes under
the TAMRA... tax citation. When you adhere to TEFRA, DEFRA, and TAMRA your money grows tax-free
and you can access the money tax-free. You don't have to wait till you're 59 and a half or age 72.
You can take out money anytime you want and it's totally tax-free. People go, this sounds
so incredible but golly it would have been far better if I would have started this when I was 30.
Well, yes and no. But see, if you're 60 TEFRA, and DEFRA, gives parity. They go, what's parity?
That means equality. Meaning, because EF Hutton designed this to be for living benefits.
When they pass those tax citations parity means it doesn't matter if you're 60 years old. You can get
the same rate of return as a 20-year-old athletic marathon-running female. If you're 79 years old you
can get the same rate of return. So, for example, if in a given year if the index credited me 11%
I want to net 10, okay. That one percentage point is not tax it's the cost of the insurance
that the IRS says has to be there in order for it to be tax-free. But to me, it's not a cost because
it's going to blossom at the end of the day and transfer tax-free. It's actually a benefit not
a cost. But that one percent is money that would otherwise, go out the window in unnecessary income
tax. If I follow the herd and put money in IRAs and 401ks I'd have to earn 15 percent
in an IRA 401k to net 10 percent after paying tax. I only have to earn 11 and an IUL to net 10.
because the 10% is tax-free. So far so good and people say, "Well, yeah, but the cost of insurance
is going to be sky high if you're 60 compared to when you're 20." Now, parity means the amount
of insurance that is required under TEFRA, DEFRA gets lower every year older you are. So, that if
you're 60 you can set up an IUL policy that earns 11 and that's you 10 just like the 20-year-old.
The 20-year-old has to have more insurance but they probably don't have as much money as you do.
But if you're 79 years old even with health issues but you still qualify you can earn 11 and that 10
just like a 60-year-old just like a 20-year-old. Because the amount of insurance that you are
required to have is less the older you are and the longer you keep the policy if you watch another
episode then pretty soon you're self-insuring and the cost of insurance actually goes
down the amount of insurance at risk that you're paying for gets less and less as you get older.
So, no it doesn't matter how old you are. If it's designed correctly and funded properly
it's incredible, it's never too late. But what if you are too unhealthy? What if you've just
had quadruple bypass surgery. Sometimes you can wait five years and then qualify but then you can
own an IUL policy on your spouse, your kids, or your grandkids. I have an episode that talks about you
use the surrogate because the owner of the IUL gets all the tax free accumulation and tax-free
access. So, when people say when is a person too old I say, never. Sometimes somebody has come to me and
they were 85. I can't put an IUL on their life but they can own one on their adult children's lives.
I do this all the time. My kids own them on me. I've owned them on my in-laws and my father.
I couldn't on my mother she had heart disease. But see, the owner of the contract gets all the
tax-free accumulation. So, you can own one on other people and you can qualify even with some health
issues clear up until age 79 or 80 and you can squeeze down the death benefit to perform so
that you can earn 11 a net 10 just like a 20 year old. Yeah, if you started earlier it might be better
to have done this your whole life. But you start now and it will always be better than
if you waited and said, "Well, I don't qualify". No, you can implement the strategies of an IUL no matter
how old you are. Does that make sense? Be sure you claim your free copy of this book and if this is
resonating post a comment. We want to know what you need to understand better, share, click like.
But more important than anything make sure you claim your free copy of this book. The laser fund
has been flying off of our warehouse shelves and it retails for 20 bucks you don't need to pay that.
I'll gift you a copy for free but you do have to contribute a nominal amount towards the shipping
and handling when you go to laserfund.com. You can click on the link below and you cover some of the
shipping and handling and I'll pay for the book and fire it out and this has 14 chapters with all
kinds of charts and graphs. You even flip the book over and there's 12 more chapters that contain 62
actual client stories. When you study and you watch these episodes you'll be better informed than to
meet with an IUL specialist to see how these strategies apply with your numbers. So, it would
behoove you to watch as many of these educational videos as possible before you meet with an IUL
specialist so you can start the conversation up here instead of down here. Does that make sense?