This is safer and pays far more interest. In this episode, I'm going to address the question,
"What is safer than a bank or credit union to save money?" Get ready. It's probably not what you think.
Hi, my name's Doug Andrew and I've helped many many thousands of people optimize their financial
assets by increasing the liquidity, the safety and the rate of return on their money to prepare for
long-term goals like retirement. Whatever you're saving money for, whether it's a college funding
for your children or grandchildren, retirement, real estate, a vacation ,whatever your goals are, people
are concerned about safety and they should be. But, safety actually has 2 different
meanings when it comes to money. Are we talking about safety of the financial institution where
we house our money or we invest our money or are we talking about safety of principle?
A lot of people go, "Hmm. I haven't thought about that one." Safety of principal means this. Whatever
I set aside or invest, and that's the principle, my basis. I want it to be safe from loss and people go,
"Well, yeah but you've got to take some risks." Yeah, we want the highest returns at the lowest risk but
you're going to give up some safety if you're going to go for a little bit higher rates of
return. But I would like to have my cake and eat it too. I'd like to have the greatest amount of
safety possible and not have to give up on rate of return. I'm going to show you how to do that
because I want to not lose any of my principle but even further than that, any year
that I make money on my investment , I want whatever I made in a given year to be locked in and become
newly protected principal. So, if I have a hundred thousand and at the end of the year I have 150,000,
now I want the 150,000 that it grew to to never lose money from that point forward, so that all the
money you make is newly protected principle. Now, most financial advisors go, "Huh? How do you do that?"
because unfortunately, they've never been taught how to provide that safety for their clients.
I'm going to show you how you can do that. When we talk about safety of the institutions,
there are different rating agencies out there. Generally there's 5 or 6.
The rate of banks, credit unions, insurance, companies, financial institutions
on different scales and if it's an insurance company, it could be AM best. If it's simply any
corporation, it could be S&P, standard and poor's and their rating system is different than maybe AM
best. AM best may have the highest rating being A plus plus whereas standard and poor's, their highest
rating is triple A and then you have Fitch and Moody's and Weiss and all these others and so
sometimes it's confusing. So, what I like to do is look at a combined score, there's a company
called vital signs, and it rates based upon all of these rating agencies and assigns a Comdex score
of which institutions are ranked in the top 10% or the top 20% or whatever. And so, if you
were to choose a company that they rank 85, it would mean that it's in the top 85 percentile, okay?
Or a score of 90 it's the top 90 percentile. So, when you choose a company that is a legal
reserve company like an insurance company, I think those are some of the safest places to park money
because the legal reserve system. So, I believe that the multi-trillion dollar insurance
industry would be the last domino to fall if things got really bad and it's based on
actual history. So, let's go back to the great depression, for example. In the great depression,
some real estate dropped 80% in value. Did you know that? Banks closed. 40% never reopened again.
Guess how many legal reserve insurance companies went under in the great depression? 0.
Most of them came through accrediting to, 2 and a half, 3 three and a half percent. Right now
that sounds pretty good, right? What about 2008? Now, a lot of Americans don't realize in 2008 we
came so close to a total financial collapse in this country. In fact, that's why David Walker, the
comptroller for the general accountability office resigned because the Obama administration refused
to allow him to tell the American public the truth of how much trouble we were really in. Well, what
happened in 2008? 400 banks went under. 900 more were on the brink of going under, what is called
the watch list. And so, guess how many legal reserve insurance companies went under in 2008?
0, okay? That's why I put my serious cash into insurance companies. Now, not just any company
because I get very picky. I want the ones that are generous that pay great rates of return so I use
those that offer indexed universal life and you'll see why as I continue here. But in fact, the federal
government asked the 5 major banks in America in 2008 to disclose where they have their tier one
assets for liquidity and safety. Now, what's a tier one asset? Before I explain
what a tier one asset is, if this is intriguing you, be sure and share this video, click like,
comment, subscribe. Click the little bell so you'll be notified every time I post an in-depth answer
to a financial question which is almost on a daily basis and stay with me to the end, I want to gift
you a copy of my most recent 300-page best-selling book, The Laser Fund, okay? So, a tier one asset is
where banks, credit unions will have their money that's liquid, they can get to it
when they need it, maybe with an electronic transfer, phone call. It's liquid and safe
where they can grab money in case of a run on the bank. Where there's a lot of people that need money
all at once sort of like the run on banks that happened back just before the great depression.
So, this is called their tier one assets. Do you know where the 5 major banks
have 30 to 40% of their tier one assets for liquidity and safety? In insurance companies, hello?
Off times it's in BOLI, bank owned life insurance, is the acronym BOLI. Corporations disclosed they
had it in COLY. This is where I had my corporate assets, okay? Corporate owned life insurance, why?
Because in a maximum funded insurance contract into an insurance company,
you don't even have to link to an index to earn 10% or higher like I have for many many years, you
can just settle for the general account portfolio of the insurance company that's usually earning
about 5%, sometimes 6%. So, back in 2008, most of the insurance companies
were earning about 6% on their general account portfolios, that's where they have their
billions or even trillions of dollars. One insurance company where I have some of my
money manages about 3 and a half trillion that's as much as the IRS collects in taxes
in an entire year, just one insurance company. Now, they diversify it and they may loan out money on
skyscrapers, shopping malls and so forth and they have it invested in double A and AAA
bonds and what have you, a little bit in stocks but they're very conservative but they earn a
general account portfolio rate in a low interest environment. Back in 2008, they were earning about
6, they keep about one of those percentage points for themselves and they're netting 5.
I can settle for just 5%. If I have a million dollars in there, I can take out 50,00
tax-free or let it sit there and compound and grow but with indexed universal life, anytime
I feel bullish about America, I can tell the insurance company, "You know what? Take the
interest on my million," in this example that would be 50,000 at 5%, "and put it in an
options budget and buy upside options in the index or indices of my choice." And so, they offer the S&P
500 or the Dow Jones or whatever, this is explained in the book I'm going to give you. And then those
options, if the market goes up double or triple, and the insurance company contractually must pay me
10% or 15% up to a cap. But, what if the market crashes and drops 40% like 2008? Nobody that owned
indexed universal life in 2008 lost any money due to market volatility. They may not have made
anything but they didn't lose. In other words the options expire worthless. You relinquish the
for sure 5% that your million was safe because your money is not at risk in the market.
So, this is where banks disclosed they had their money. So, let me connect
the dots for you if you haven't already. The last 10 or 20 years, banks have been borrowing our money.
"What? Borrow?" Yeah. Think about it. There's only 4 things you can do with money. You can spend it, lend
it, own with it or give it away. When you have money at a bank credit union or an insurance
company, it's in a lended position. Are they just a benevolent institution paying you interest? No. What
are they doing with your money? They're putting it to work. So, banks disclosed, they pay 1%
every million they borrow from us when we put it in a savings or checking account, every million
they pay 1% annually, 10,000 bucks, what are they doing? They're taking some of that and
putting it into insurance companies without even linking to an index and they're earning 5.
They're earning 50,000 tax-free on every million, they only had to pay 10,000. Would
you hire an employee for 10 grand that made you an extra 50 grand? That's a 500% return. Unemployment
cost, would you buy a widget machine for 10,000 that made you an extra 50,000. That's a 500%
return on equipment cost. This is how money works. And so what's safer than a bank or credit union?
How about putting your money where the banks and credit unions put your money to increase
the safety from triple B maybe to triple A by 6 notches higher in safety and they earn 5 times
the rate of return? Why not bypass the middleman, the bank or the credit union for long-term goals?
Any money that's earmarked for 6 months or longer down the road, why would you put it in the
bank or the credit union when you can increase the safety and the rate of return dramatically,
bypass the middleman, put it into the insurance institution and here's how you do it with what
I call the laser fund. Wow. If this is intriguing you, I've just scratched the surface, the tip of
the iceberg. So, I'm passionate about educating people on how money works. I like to keep my money
liquid so I can get to it when I need it, safe. Do you know money in a bank or credit union, if
things got really bad they could stall you up to 6 months before they give you your money out of
your checking or savings account? Did you know that? Money inside of a laser fund, I can access
much easier. I call it the last domino to fall because if things got really bad in this country,
you would have so much forewarning to be able to get your money out of the insurance
company because this is where banks have money for liquidity and safety. You could access your money
but let's say things were really really bad and you got your money. Where would you put it?
I mean, if things were that bad, the American dollar would be worthless. And so, I like to put my money
in the institution or the repository that would be the last domino to fall and if that crumbles,
the American dollar would be worthless. You better be able to grow carrots in your backyard at that
point because gold and silver is not the answer. When things are that bad? You can't eat the gold or
silver. You'll be exchanging gold for just food and so you want to make sure that you can have access
to your money if things get that bad but you can convert it to the things that will sustain you.
It's called the laser fund, liquid assets, safely earning returns. This is a 300-page book. 200 pages
are charts and graphs and explanations if you're a left brain thinker. If you're a
right brain thinker, you flip it over and there's another 100 pages with 62 actual client stories
of how people have used the laser fund to accumulate their money tax-free in the safety
of a multi-billion dollar insurance company or several companies and earn rates of return
averaging 6, 8, 10% tax-free with full liquidity safety and earning those rates
of return so that every million can generate 60, 80, 100,000 a year of tax-free cashflow. That's
where I would consider putting my serious cash for the greatest amount of safety. Go to laserfund.com,
contribute just a nominal amount towards the shipping and handling,
click on the link below and I'll pay for the book and fire out a copy to you. There's options there
if you like to listen and learn and watch and learn, here's to your brighter future.