- Is the LASER Fund legitimate?
In this video episode,
you will understand by the end
that a LASER Fund is my name
for what I call a max funded indexed insurance contract
that is structured correctly and funded properly
because I would dare say that over 99% of IUL policies
that are sold in America are not structured,
the way I'm gonna show you here,
to perform as a superior capital accumulation tool
totally tax free.
So, I'm gonna show you what I deem a LASER Fund,
which is built on the chassis of an IUL,
but why so many advisors do not understand
how to do it correctly and what makes the difference
and what makes it so magic
and why it's my favorite financial instrument.
(upbeat music)
So, my name's Doug Andrew
and I've been helping people optimize
their financial assets, minimize taxes
and empower their authentic wealth now
for north of 48 years.
As a financial strategist
and retirement planning specialist,
I've noticed that most retirees,
if they make the mistake of following the herd, so to speak,
putting money in tax deferred IRAs and 401ks in the market,
that at retirement planning
is something totally different than maybe what you did
for your retirement planning.
And so this is where I help a lot of people
get money off of their 1040 tax return
so that the IRS knows they're receiving money,
but it's cut and dried as tax free
because it's been tax free for over 108 years
in the Internal Revenue Code.
And so my favorite instrument to do this
is a maximum-funded IUL policy structured correctly
and funded properly.
And I call that, if you do that correctly
and fund it properly,
it passes the laser test, the safety test,
and the rate of return test with flying colors
and it's tax free to boot.
And very few Americans have money in instruments
at retirement that are totally tax free.
Lemme just say it this way.
Many people would come to me at retirement
and maybe they have been savers,
and they would come in and say,
"Doug, between my spouse, myself,
we have 2.6 million saved."
And so we calculate based upon the 4% rule,
and what have you that we could pull out 160,000
a year out of our IRAs and 401ks.
And we have another 40,000 maybe in social security
or defined benefit pension
because my wife was a school teacher or something,
so we have 200,000 of income.
And I go, "Wow, way to go."
And they go, "Well, you don't sound that impressed."
And I go, "Well, I see one big problem."
And they go, "Well, what's that?"
"Well, all 200,000 of this is showing up
on the front page of your 1040 tax return
and will for the rest of your life."
"You mean there's another way?"
And I go, "Yeah."
And they usually say, "Well, where have you been?
I didn't know there was another way."
I said, "Well, you probably had your head in the sand
just following the herd,
putting money into company's 401k.
Now you're having to deal with tax on the back end
because you have 200,000 of income
but you're gonna shell out 40, 50, 60,000
of that in tax every single year, the rest of your life.
And if you keep deferring and taking RMDs,
who's retirement were you planning, yours or Uncle Sams?"
And so I go, "We need to get at least 40, maybe
up to 60% or more of that off of your 1040 tax return."
"Well, how do you do that?
Is this legitimate?
Is this LASER Fund legitimate?"
I go, "Absolutely".
"How come I've never heard of it before?"
Well, in my circles, thousands of people use it
but sometimes it's not until you're hurting
because of taxes and inflation
and market volatility that people finally pay attention.
So I have to cure this problem that they have.
I wish I could have prevented the disease
I'm having to cure it.
And I'm talking about financial dis ease.
When you're not at ease physically
at a cellular level, we call that disease.
Well, a lot of people have financial or tax dis ease.
And so I've had to cure that.
I wish I could have prevented it
but I usually have to cure it.
So this is called a strategic rollout, not a rollover.
We have to get money outta those IRAs and 401ks
and get the taxes over and done with
sooner than later, and then reposition the money
into something tax free from now on,
a portfolio of IUL policies.
Then they're immune from taxes, inflation,
and market volatility
because we eliminate those dangers by using max funded IUL.
Okay?
And so when we talk about a LASER Fund,
if you structure it correctly or fund it properly, okay?
Both actually, then it passes the laser test,
liquidity, safety, ready return and tax benefits.
So when we talk about money in traditional IRAs of 401ks,
you have to deal with taxes and inflation.
And unfortunately, a lot of people will outlive their money
in those situations.
And so there's only three types
of income Americans pay income tax on
ever since 1986 tax reform,
the second term of president Ronald Reagan.
Earned income which would be like salaries and wages,
and you're not doing that anymore
in retirement probably.
There is passive income which is like rental income
or lease income if you own property or equipment.
But then there's portfolio income.
That's like interest or dividends.
That's investments,
and that's where most IRAs and 401ks are invested.
And you have to pay taxes on those three types of income.
Now money out of an IUL policy,
if you take it out the smart way
is not deemed earned passive or portfolio income.
It's tax free, it's just cut and dried.
And so if you have income
that does not earn passive or portfolio income,
there's nowhere on a tax return to put it.
It's not a loophole.
The IRS knows you're receiving it.
They know everything, but they know it's tax free, okay?
Now you can watch other episodes to understand this
but I have had many, many thousands
of clients who will utilize a max funded IUL,
and in the worst periods
like the great recession, 2000, 2010,
with IUL, even without rebalancing the portfolio,
they earned 7.23%, okay?
And that's if they fell asleep
and woke up 10 years later,
they would've doubled their money because 7.2
into the rule of 72 means your money
will double in 10 years.
Now, in actuality, most of my clients earned 10.07
or even 11.17 because they don't have
to sit there and earn zero,
five of those down years,
because most 10 year periods have seven up years
versus three down years.
From 2000 to 2010,
we had five lost years compared to five up years.
If you just fell asleep, you had five years where
you didn't make anything, you didn't lose,
but you didn't make anything.
The other five years you did but your average was 7.23.
See, I met with my clients annually
and so I rebalanced their portfolio.
So there were only two of the five years they earned zero.
The other three years,
they earned the general account portfolio.
We didn't link to an index.
And so they moved their rate of return
from 7.23 up to 10.07, even 11.17, okay?
Let's just use 7.2.
If you started out with 125,000 bucks one time
and you earn 7.2,
it'll double in 10 years to 250.
In another 10 years, it doubles to 500.
And another 10 years, it doubles to a million.
Okay, now let's say you have a million dollar nest egg.
Now I have actually earned 9.6.
And this has ever since 1980
when it was first introduced.
With rebalancing, I have earned some years
as high as 153% with multipliers.
Let's just be super conservative.
You don't need pie in the sky rates of return
to have a rate of return that that outpaces inflation.
So 9.62 is what I've averaged since 1980
even before index universal life came out.
At 9.6, my money doubles every 7.5 years,
you divide 9.6 into 72,
your money doubles every seven and a half years.
So a half a million.
I've had many, many clients put
in a half a million one time,
and it doubled in seven and a half years to a million, okay?
And then in another seven and a half
in the 15th year it was worth two million, doubles again,
and then it doubles again to 4 million
in 22 and a half years.
And by the end of 30 years, they have 8 million.
Yeah, we have clients with indexed universal life
that started out with a half a million,
and 30 years later, they have 8 million.
And you know, some advisors go,
"Oh, I've never seen anybody earn very much in those."
And I'm going, "Oh really?
Well, then you haven't seen our clients
in what they've been able to earn."
We have a couple in California,
we took 'em from the highest tax bracket
to a 0% tax bracket in five years.
When they got all through with their IRAs of 401ks,
we ended up with 4 million net
in a strategic rollout,
and they ended up seven and a half years later
with over 8 million.
They have 8 million and it's generating
between 600,000 to 800,000 or more a year in earnings.
They don't need that much,
they only pull out 300,000 business tax free.
And so it grows in spite of taking 300,000 out.
It grows by a half a million
because it's earning way more than they're taking out.
They will not outlive their money, but let's look at this.
People say, "Prove it to me." (chuckles)
We have thousands of statements of our clients.
We diversify our clients into superior vehicles.
Now these are some of the statements
from my son's clients,
and this is where they have maybe 20%.
Let's say they have a million bucks,
and they have 20% or 200,000 linked
to the Bloomberg US Dynamic Balance Index.
Maybe the S&P 500,
maybe the Dow Jones, maybe the NASDAQ.
See?
You diversify into superior vehicles,
and they get one annual statement on one sheet of paper.
And it shows, oh, this 200,000
of your million got credited this year, 14.89.
Another 20%, fifth of your money got credited
10 and a quarter.
Another got 15.07 and another eight and another 13.
See that's diversification.
We don't know at the beginning of the year
which one's gonna outperform the other
but, hello, you do the average of that, it's over 10%.
We've been doing this for years.
A another client statement,
same basic concept.
They diversified in five, 14.89,
16 and a half, 10 and a quarter, 15.07, 13.
These are actual statements.
We have thousands of these statements from our clients.
And yet there are critics out there,
they go, "Oh, I've never seen one do that."
Well, because you've never seen it.
You don't exist.
You don't think it exists.
You know, have you seen your brain?
How do you know that exists?
That's such stupid reasoning to me.
Here is an example of clients in the year 2021.
Now, when you have an advisor
that understands what they're doing,
they will meet with you annually, okay?
And so what happened in March of 2020?
The COVID 19 pandemic caused the market to begin to crash.
It dropped 30% in March of 2020.
Now, when there's anxiety, there's opportunity.
My two sons called their clients and said,
"Hey, link to a one year, point to point, no cap."
Now that normally is not a strategy
they will use, because if you choose a no cap,
there's no cap to your return,
that means that the insurance company
is gonna subtract five percentage points.
So if the market goes up 15, you'll only net 10.
If it goes up 10, you'll only net five.
But they knew the chance that the market
would do very well after a 30% loss,
that it's worth 5% on the back end.
So they told their clients to take some
or all of their money
and link it to a one year, point to point, no cap.
So in March of 2021, you can't see this
but this is a statement in March of 2021.
This client had 6,100
in the one year index account with a cap, okay.
And they got credited 9% on that.
They had another 6,300 in a high cap index,
and they ended up with 12% return on that one.
They had another 6,100 in a high part index.
And so they got seven and a quarter,
but they chose to put 18,000.
So when you add all this up,
they had, you know, three times as much
in that one as the others.
And they got 61.33% because the market
from March of 2020 to March of 2021 went up 66.33%
minus the 5% spread.
They net at 61.33%.
So you added all up and this is their rate of return.
It was phenomenal.
Now we had some clients that said,
"Oh, I'm gonna do the whole thing."
This is a client who started out
in March of 2020 with $872,786.
And in the year from March 2020 to March of 2021,
they got 61.33%.
They made 535,000 tax free.
On top of their 872,
they ended up one year later with 1,387,000.
They made a half a million.
It also means that if the market crashed
the next year, they would not lose one dime
with this million 387.
You lock in that gain and you reset.
If the next year, the market crashes,
you do not lose one dime of a half million
you made the year before.
Now, I won't even show you the statement
of the client who used a multiplier.
That's another strategy that I explain
on other episodes, but some people got 2.7 times that.
Many clients got 153% gains in one single year.
That is the strategy.
So when people say, "Is this LASER Fund legitimate?"
How much more legitimate can you get
than actual proof that this works?
This is one of the most dynamic strategies
I could ever share with you.
If you wanna learn more so that you don't miss out,
make sure you read and study this,
and also find an advisor
that can help you implement this correctly.
So this is my 11th book.
It's called "The LASER Fund."
How to diversify and create the foundation
for a tax-free retirement.
If you go to laserfund.com,
L A S E R fund.com and you contribute
a nominal amount towards the ship in and handling,
you have to have some skin in the game yourself,
I will cover the rest of that cost
and I will pay for the book,
and I'll fire out a hard copy to you.
300 pages of charts, graphs, and explanations.
You flip it over and there's over 62 client stories
in 12 chapters on this side.
So whether you learn by left brain or right brain,
it's all covered in this book.
But here's the key, you will be able to listen and learn,
watch and learn if you want,
check out some of the webinars in there.
But if you want me to point you
to an advisor who understands how to do this correctly
so that it is legitimate,
because the reason why you probably think it isn't
is because you're looking
at policies that were not structured correctly.
This is about you and your brighter future,
and I don't want you to make any mistakes
that you have to have undone down the road.
Do it right the first time.
(gentle ambient music)