How come everyone isn't doing this? By the end of this video episode, you will understand
the main reasons why everyone isn't doing this and why you may have never heard of this before.
S,o I'm Doug Andrew I've been a financial strategist and a retirement planning
specialist now for north of 48 years. I've been very blessed in my lifetime to have authored
12 best-selling books thus far. I have several more up here. But in all of my books in one way
or another I talk about how to optimize financial assets in addition to other assets on the family
balance sheet like your heritage and your beliefs and your faith and your wisdom and your knowledge
and so forth. That's why this channel is called three-dimensional wealth and why we educate
people in all three dimensions. It's like a three-legged stool. But most people have
always come to me through the financial dimension or the financial portal. Because they want to sock
away their money in the best instruments to achieve the greatest liquidity, safety, rate of
return, and tax benefits when they begin to understand that those are the key elements
of prudent investment and when they really study liquidity safety rate of return on tax benefits.
They begin to realize that traditional places where most Americans have their money like IRAs
and 401ks do not pass the liquidity safety rate of return test with flying colors and they're
only tax to further not tax-free. So, my favorite vehicle that accomplishes that is a max funded IUL
policy and if it's structured correctly and funded properly I call it a laser fund. Because
laser is an acronym that stands for liquid asset safely earning returns. My most recent best-selling
book that's been flying off of our warehouse shelves is this one called The Laser Fund.
How to diversify and create the foundation for a tax-free retirement. This isn't about selling you
my book, okay. This retails for 20 bucks but if you haven't claimed your free copy be sure and do so
by going to laserfund.com and you just contribute a nominal amount towards the shipping and handling
and I'll fire out a free copy to you. But in this book I have 14 chapters in the first 200 pages
with all kinds of charts and graphs and explanations of how this works. How to diversify
and create the foundation for a tax-free retirement. If you learn more by stories
and examples you flip it over to this side and there's about 100 pages 12 chapters with 62 like
chicken soup for the financial soul stories. But on this white side, I actually answer this question
because I've been asked it thousands of times in my career and I've been doing this for 48 years.
Doug, if this is so good how come everybody isn't doing this? Well, of course, I can be a little bit
flippant and say, "Well, how come everybody isn't your political belief or your religious belief or
how come everybody isn't thin and lean and mean and healthy?", hello? It's like because people
either choose not to learn or to be disciplined to save money or to take time to understand
how to optimize their assets and minimize taxes and so it's sort of the same reason why sometimes
people are not healthy or that people do not have the same beliefs that you do. But beyond that,
the reasons are that sometimes advisors are not trained to show you this and I address that. But in
the book, I actually have a chapter that is titled why isn't everybody doing this? Because I've been
asked the question so many times and so I'm just going to give you a brief summary of what's in
this chapter. It's chapter number 11 and I'm going to explain to you why everybody doesn't do this
and there's I think 10 different reasons in the book. So, are you ready? The first reason i give in
the book is lack of awareness. There is just not a lot out there compared to following the herd
putting money into IRAs and 401ks. In fact, there was an article a few years ago in January I think
of 2017 so that's been what five-six years ago. It was in the wall street journal and it said the
original champions of the 401k lament the day they ever came up with that idea. Yeah, because
it got away from them. They never intended it to be the primary retirement savings vehicle. Because
it's in the market people lose money. People are not in lower tax brackets when they retire and so
it doesn't behoove you to defer to some future perceived unknown advantage and so they go
what were we thinking? But it got away from them and most companies just started offering 401ks
and everybody just followed the herd and they don't take time to learn. Now, the ones who do in
my circles it's very common. Savvy investors use these all the time. But lack of awareness is the
number one reason. Number two, would be it's the path of least resistance. To be honest with you,
many times I have taught educational seminars for big firms banks and credit unions and they'll
fill up the auditorium with 400 people, 1,600 people, 2,500 people and they'll all want to come
into the banker credit union to learn about how to employ IUL policies and then all of a sudden it's
like they were baited to come in and then the bank switches them over to an annuity or a CD
and it would drive me crazy and I go, what's up? And they go, "Doug, we don't have time to educate
people on this and we don't have time to see if they qualify for an IUL policy. We just need to
herd them through. Slam bam thank you man, we don't have time for this. What they don't know won't hurt them",
and so they just say, "You know, if we just sell them a CD or an annuity all we need is their name,
address, social security number, and a check". So, it's the path of least resistance and I go,
that's pathetic. I will never do another seminar for you and I didn't. But see, it's like well
this is the path of least resistance. Setting up an iul policy takes sometimes a month or two
or three months and our advisors don't know how to do it correctly and so they just take the path of
least resistance and they just want to check their name, address, social security number. That's pretty
pathetic. The third reason is because it's too much work and that sort of leads from the last one.
Sometimes a lot of these firms just say, "You know what, if we just sell them a mutual fund
or we move their money into the market we just put it here into this ira custodial account.
They just write out a check and we're done. This is too much work. We have to schedule maybe a physical
exam. We have to go through underwriting and see if they qualify and if they don't we have to use
a surrogate. That's too much work. We just want to be paid as soon as possible, so it's too much work."
Isn't this sad? The fourth reason is that many times firms are selling the clubs instead
of the swing. What I mean by this is is if you were going to be playing in a golf tournament
let's say and you had the choice of using a professional golfer like Phil Mickelson's swing
or you could use his clubs what would you choose? Yeah, I'd rather have a swing, not the clubs.
See, most financial advisors focus on selling you the clubs or the commodity. I buy this mutual fund
or this stock or bond or gold or silver. It's not in the commodity. It's not in the clubs
it's in the swing. It's in the strategy. Indexing is a strategy. IUL is a strategy that takes time
and they don't want to spend the time. They just want to sell you the clubs. They don't want to
take time to teach you the swing. That is sad to me. I've always been passionate about educating people.
So, what's the next reason why? Well, it's not as lucrative. To be honest with you, if somebody sets
you up as an asset manager and they say, "Oh, we only charge you one percent of whatever your account
is worth every year", they think that's cheap. They know that if they charge you one percent every
year and you started out with a half a million and if they did earn you 9.6% which is what I've earned
my clients on the average. your money will double every seven and a half years. A half a million
should double to a million and then to 2 million, 4 million, 8 million, by the 30th year.
If they charge you one percent every year they would have made a million dollars that's lucrative.
If you do an IUL policy the commission on the front end might be 20,000
30,000 at the most. But see, they want to make money year in and year out. They want you
to create a lifetime of income because they get to deduct one percent every year
whether they made money for you or not. I've never made one dime on any of the money my
clients make in their IUL policies. That's pure profit to them so it's not as lucrative. So many
advisors do not offer them because they want to make money in the long run, okay.
What are the other reasons? We go to reason number six. Well, there's a lot of advisors that say,
"Well, you should only have so much life insurance. You should only put so much money into life insurance.
Life insurance is not an investment it's for death benefit." Well, they don't understand that a maximum
funded insurance contract will knock the socks off of most IRAs and 401ks invested in the market
and I can prove it to you. The next reason is many advisors are told well life insurance is expensive.
You have the cost of insurance in there until they learn that actually when you structure an
IUL properly the cost of insurance can get cheaper as you get older. I have another episode on that. So,
it's really their lack of awareness. They don't know what they don't know but they just say,
"Oh, it's too expensive", because somebody told them it was too expensive and they never went
and checked it out. But that's a reason I hear all the time. Wel,l insurance is expensive. Why should
I don't need any more life insurance. Why should i pay for something I don't need?
Quit looking at what it is look at what it does. The insurance is actually a minuscule portion
of the money that would otherwise go out the window in unnecessary income tax. In other words,
I've never met anybody that objects to insurance benefits. If your employer came to you and said,
"Hey, this year and we have some additional benefits for everybody here. We have free life insurance. How
much would you like?", as much as I can get. We don't object to the insurance benefit, we object to what?
Paying for it. If you structure an IUL policy properly you will not be paying for it.
It will be paid for with otherwise payable income tax. Nothing's free but I'm not paying for the
insurance. It's being redirected from otherwise payable income tax if I follow the herd and put
my money in IRAs and 401ks and you will understand that when you begin to read my books. So, what's the
next reason? Well, some people say well insurance maximum funded insurance is only for the wealthy.
Yeah, Disney, Ray Kroc with McDonald's and the comptroller of the general accountability office
David Walker, JCPenney. Yeah, they use life insurance and people say, "Well, yeah, they were wealthy".
No, I have people that suck away 500 bucks a month into IUL policies. They do it for 30
years and they end up with a million dollars tax-free. It's not just for the wealthy. You
don't need a lot of money to do this. It's not just this luxury. This is sometimes your
foundational base for your financial plan. What's the next reason? Well, hardly anybody's doing this,
right? No, in my circles it's the most popular vehicle to accumulate money tax-free safely
at great rates of return. So, when they say, "Well, hardly anybody's doing this", they're talking about
the herd, the masses, that are sort of financial jellyfish. That will always have too much month
left at the end of their money and the people who really take ownership of their future take time to
learn like you're doing right now. Those are the ones who take advantage and the others miss out
because they won't take the time to learn and take ownership. What's the final reason?
Well, they usually say, "Well, even Doug Andrews says it's not an investment. So, why isn't it an
investment? If it was really truly an investment he would call it that", I'm going, you don't understand.
I don't want it to be called an investment. If you watch the episodes on this channel an investment
in the internal revenue code means it's going to be subject to tax sooner or later, a tax-deferred
IRA and 401k. I don't want to pay tax. So, it's not an investment and I don't want it to be
deemed an investment. If I stay under the sections of the code that is not an investment, it's tax
free insurance I don't have to pay tax. Also, most investments are subject to market volatility.
I don't want to lose where the market goes down and so I don't want one of those investments. So, when
they say, "Oh, well Doug Andrews says it's not an investment and don't you want to invest your money?",
no, I want a vehicle that will be tax-free and I won't lose when the market goes down. Investments
are subject to those problems I don't want those. So, it's usually because an advisor
doesn't know what they don't know. So, when people ask, well, why isn't everybody doing this?
It's basically you can't be aware of something you're not aware of. So, make sure as you claim
your free copy of the book you go into there and you can read the chapter that explains this
in detail. This is incredible and I don't want you to be going hmm how come I missed out?
Because you refused to understand how this can be a dynamic capital accumulation tool
for your long-term goals such as retirement. So, claim your free book. When you're in there you
can make an appointment to meet with an IUL specialist. It would behoove you to watch as
many of these episodes as possible. Share them, post comments, click like, and when you do that
then you'll be better prepared to see how these strategies apply with your numbers plugged in.