- A max-funded IUL is far more flexible
to save for college funding tax-free.
In this episode, I'm going to address the question
how a max-funded IUL is far better
than a 529 college savings plan
for your kids and grandkids.
(upbeat music)
So I'm Doug Andrew,
and I've been helping many, many thousands of people
accumulate their money tax-free
for long-term goals like retirement,
but not just retirement,
other financial goals like college funding
for your children or grandchildren.
So I'm gonna share with you
why I've never owned a 529 plan.
I never will.
Why would I when I can max fund an IUL insurance contract
and have all the benefits of a 529 plan
and a whole lot more?
So let me explain why.
There's a lot of other episodes on this educational channel
that you can check out (bell chimes)
on what my favorite financial instrument is
to accumulate money tax-free, not just tax deferred,
and then be able to access money anytime
totally income tax-free.
And then when you ultimately die,
anything that is in there,
it blossoms and increases in value
and transfers income tax-free.
There's nothing else that does that
in the Internal Revenue Code under section 72E,
7702, and 101A that have been in the Internal Revenue Code
in one form or another for over 108 years.
So I've been saying max-funded IUL.
Unfortunately over 99% of IUL policies sold in America
are not structured correctly or funded properly
to pass what I call the LASER test.
LASER is like an acronym,
and it stands for liquidity, safety,
rate of return, predictable rates of return,
and I prefer tax-free.
That's icing on the cake.
And so therefore a lot of IUL policies
cannot perform optimally as good as they could,
where you earn an average of 11 and net 10.
If you earn nine, you net eight.
If you earn 16 one year, you'll be netting 15.
If you earn 25, you'll net 24.
It's sad when I see people
not achieving the greatest internal rate of return.
So I've written several books about it,
and at the end of this episode, if you stay with me,
I want to gift you a free copy.
But as I'm talking here, if you can think of somebody
that would benefit from this, be sure and share.
Post a comment, click like,
but most importantly,
subscribe to this 3 Dimensional Wealth Channel.
It's free, and when you do, click on that little bell
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every single time I post a new educational episode,
which I do almost on a daily basis.
But stay with me until the end.
I want to gift you a copy of my most recent
300 page bestselling book called "The LASER Fund".
So let's get back to this 529 college savings plan.
Now, my wife and I, we have six children.
They're all adults now,
and we didn't pay for their college education.
They actually had to have skin in the game.
We didn't ever lead any of them to believe
that we would just pay for their college.
I've never believed in that.
We gave them equal opportunities, not equal distribution.
Oh, okay, we'll just pay for your college.
In other words, they had to study and work hard,
and if they got a scholarship,
we might match their scholarship.
If they needed help, they might borrow from the family bank
instead of a student loan,
and then they had to pay the loan back
with a nominal interest rate
once they graduated and start earning money.
Or if they couldn't pay back with money,
they would work, they would paint,
they would shampoo carpets, whatever.
And they took ownership in their education.
Why?
Well, when I went to college,
I came from a family of six, as did my wife.
Our parents couldn't afford to pay for our college.
We didn't expect them to.
And so I got all kinds of scholarships
and I worked at Kentucky Fried Chicken
30 hours a week in college.
My wife worked at a bookstore about 30 hours a week.
Frankly, we had better study habits
than most of our friends, many of which whose parents
were just shilling it out.
And they goofed off.
They didn't have any skin in the game.
So when we got married, we didn't want our children
to just think we were just gonna pay for their college.
And we gave them equal opportunities.
So again, if they got a scholarship, we might match it.
If they wanted to borrow,
and they could borrow for a student loan, but it was
a nominal interest rate (bell chimes)
and they would pay the loan back.
If they couldn't pay the loan back
when they went out and started making money
in their occupation or their vocation,
then they could work it off mowing lawns
or painting or shampooing carpet or whatever.
It wasn't just a handout.
We wanted to give them a hand up, not a handout.
And so they actually graduated
and they learned by working their way through college
and appreciating their education,
they were way ahead of a lot of their peers
that their parents would just shill it out, okay?
But, what did we do with the money
that we had in our family bank to loan them
or to match the scholarships or what have you?
We put it in a max-funded IUL or several IUL policies
because the money accumulated tax-free
and they could access it,
we could access the money totally income tax-free.
We were immune from taxes.
Inflation helped us instead of hindered us
and it was immune from market volatility.
And if I happen to die, if I would've died,
if I had 50,000 or 100,000 in there,
it would've blossomed to a half a million
or a million tax-free, and it would've taken care
of the same needs for my six children
had I not stayed around.
If you save in a 529 plan,
it doesn't self-complete if you die.
If you die, it's just gone.
I mean, the money is whatever it is in there when you die.
It doesn't blossom.
And so I often go,
why would you even participate in a 529 plan?
See, if you put money into a government 529 plan,
what are the disadvantages?
Well, the money you put in a 529 plan is tax-free
only if it's used for college funding.
Now, you wouldn't believe how many times parents have come
and they put it into a 529 plan
and then their child got scholarships, they didn't need it,
and then the child graduates and goes out
and wants to start a business or buy a home.
Now they take the money out of a 529 plan
and they have to pay tax
'cause it wasn't used for college.
Huh?
Yeah, under the LASER fund, an IUL policy,
you don't have to use the money for college
even though you sort of earmarked it for that.
You can use it for the purchase of a first home,
you can use it to start a business.
It's always tax-free.
Why would you put parameters
around a 529 plan that it's only tax-free
if you use it the way
the government says you have to use it?
To me, why do I want those restrictions?
A 529 plan is not self-completing if you die, like I said.
If I died, anything in the savings account
with the IUL policy would blossom.
If I put in
(bell chimes) the first $10,000 and I died,
it would lead behind 1,250,000 bucks
under the one that I set up, totally tax-free.
It would've funded all six of our kids' college education
if they needed to borrow or match their scholarships
if I didn't stay around.
529 plans do not self-complete if you die.
A LASER fund is totally tax-free at any time.
You don't have to use it for college.
You can put money in.
I have put money, like 50,000 or 100,000 in
and four days later pulled out 40,000.
I had a client put in 200,000 and said,
I won't touch that for 20 years.
Huh, she got in an accident the next month
and she needed 120,000 of the 200,000.
She got the money within 48 hours, totally tax-free.
It didn't trigger penalties or anything like that,
like a 401k.
A LASER fund does not restrict the contributions.
You can only put in a certain dollar amount
or a certain percent of your income into a qualified plan.
In a LASER fund, I can put in 100,000,
I can design it to accommodate 300,000.
I don't have to put that much in.
I can put in 30,000.
I can make up the other 270,000 anytime I want.
If you don't use the room in a given tax year
for a qualified plan, you lose it forever.
Why would you want all those strings attached
or those restrictions?
Is this making sense?
So you can access money out of a LASER fund, an IUL policy,
anytime for any reason.
It doesn't have to be for college.
But that's my preferred vehicle that will knock the socks
off of a 529 college savings plan.
In fact, most savvy advisors who help people
with savings accounts for colleague funding,
they advertise that they can help you with a 529 plan,
but the smart ones, they will show you why a max-funded IUL
is way better than using a 529 plan
for the reasons that I've explained and many more.
So if this is intriguing you, I actually have some stories
in my most recent bestselling book called "The LASER Fund"
that explain why this is better than a 529,
and you'll read them in here.
I wanna gift you a copy of this.
Now, how can you claim your free copy?
This isn't about selling you a book.
I'm going to pay for the book.
You simply go to laserfund.com.
What's a LASER fund?
It's a properly structured maximum-funded
indexed universal life policy
that you can use for tax-free accumulation and access
for all kinds of goals like retirement, college funding,
working capital for business, emergency funds and so forth.
And so it's like a financial Swiss Army Knife.
It's the dream solution for all kinds of goals.
Now, this is a 300 page book
and it's actually two books in one.
This side is about 200 pages comprised of 14 chapters
with all kinds of charts and graphs
if you're a left brain learner.
If you learn more by right brain stories, examples,
metaphors, you flip it over and read this one.
This is 12 chapters with 62 actual client stories.
One chapter is totally dedicated
to how to structure an IUL policy
that will knock the socks off of a 529 plan.
If you want to use your whole brain, right and left brain,
read the entire book.
And here's how you can claim your free copy.
You simply go to laserfund.com, L-A-S-E-R fund.com.
Click on the link below.
You contribute a nominal amount
towards the shipping and handling.
Just like we didn't pay for our kids college education,
you have to have some skin in the game.
You contribute towards the shipping and handling.
I'll cover the rest of that.
I will pay for the book.
I'll fire out a hard copy to you,
and there's also options there
if you'd rather listen and learn or watch and learn,
and there's even an 18 hour master class.
There's also webinars that we teach on a regular basis.
Check those out, and if you want to meet with an advisor
who understands how to help you implement this correctly,
be sure and indicate you want to meet
and talk with an advisor that can help you do it right,
because unfortunately, a lot of advisors out there
have no clue how to structure one of these correctly.
So this is about you and your brighter future.
(uplifting music)