- "When there's anxiety, there's opportunity."
I just quoted my good friend Richard Rossi.
In this educational episode,
I'm going to address how did IUL perform
during the COVID-19 market crash, March of 2020,
ending March of 2021, let's say.
Get ready, if you don't understand this,
you're gonna miss out,
because many people realized gains of 61.33% tax-free,
because they understood this and the IUL specialists
that I trained, they called their clients
and told them to link
to a one year point-to-point with no cap.
Get ready and I'll explain this.
(upbeat music)
So I'm Doug Andrew.
I've been a financial strategist
and retirement planning specialist now
for nearly five decades,
helping thousands of Americans optimize assets,
minimize taxes, empower their authentic wealth.
And if you've watched very many of my episodes,
my favorite financial instrument,
especially for longterm goals like retirement,
so that retirees don't outlive their money
due to the negative impact of taxes, inflation
and market volatility is utilizing
a max-funded Indexed Universal Life insurance contract
structured correctly and funded properly,
and it turns into a tax-free cash cow
so that they can be earning an average of 11%
if they rebalance and net 10% cash-on-cash,
which means every $1 million can generate $100,000 a year
of tax-free income without depleting principal.
Now folks, I have been doing this
for years ever since Index Universal Life came out in 1997.
Prior to that I used Universal Life
starting in 1980 when EF Hutton first introduced that.
And back then interest rates were high.
I never got credited less than 11.75%
on my Universal Life from 1980 to the early 1990s.
But then interest rates started to come down
and in 1997, so that you didn't have to put your money
out in the market to make more money
they introduced Indexed Universal Life
that allowed you to participate when the market went up,
but not lose when the market goes down.
And also to be able to earn average rates of return
by doing that and rebalancing of 11 and netting 10
just like my clients did in the 1980s.
So this is incredible and if you don't understand
how to do this, I would recommend you seek out
an IUL specialist, an IUL insider.
These are a group of IUL producers
that I personally train and mentor
in our coalition and network.
So let me show you the power of what I'm talking about,
because the fact of the matter is we go through crashes.
I have another episode that shows how did IUL perform
during the 2001, 2003 market crashes
the 2008 mortgage meltdown?
How about during the great recession
from 1999 ending in 2012 when most people
barely came back to break even
and we call it the lost decade.
It was actually 12 years.
Many clients who owned Index Universal Life
doubled and tripled their money during that time period.
A million blossomed to 3 million
when most Americans who had a million in 2000
ended up with a million 12 years later.
It went down up and down and up.
And so, you don't wanna mess around with market crashes.
You wanna protect yourself.
So people ask me,
"Well, you've shown me what happened in 2001 and 2008,
what about March of 2020 when COVID-19 happened?"
Yeah, when there's anxiety that spills opportunity.
So this is what the savvy agents
my two sons are two of the top IUL producers in America
and they called their clients
who were in a position to link.
And normally you do not recommend linking
to a one year point-to-point.
That means you wait one year
and you see what the market has done
and you don't link to a one year point-to-point
with no cap most of the time,
because on the average if the market goes up 12%,
you subtract five, because there's a 5% charge
in order to do that.
So you'd only net seven.
But if the market goes up 20%
you subtract five and you earn 15, that's okay.
But see, when the market dropped 30% in one month,
that's spelled opportunity.
And so, my sons called their clients and they said,
"Link to a one year point-to-point with no cap."
Now this client wanted to stay diversified.
They weren't sure COVID-19 was scary.
So they had in their policy 6,000
that was still assigned to this particular index strategy,
another 6,000 of this one, they got 9%, 12%,
this one got 7.25%,
but they did allocate 18,000,
the total of the other three combined, the last 18,000.
So 50% of their money
because they had about 36,000,
50% of their money they linked to
the one year point-to-point with no cap.
And they wish they would've done all of it,
but you don't know, you don't have a crystal ball.
One year later, in March of 2021, they got 61.33%,
because the market was up 66.33 minus 5% threshold charge.
They netted 61.33.
On 18,000, they made $11,500
and they ended up with $29,806 for the 18,000 they had
one year earlier.
Now you wanna see something really impressive?
My son has a client that had 852,000
as a portion of his IUL.
He had more money in his IUL,
but this was the portion that was ready to link.
And my son said,
"Link to a one year point-to-point."
He said, "I'm in."
852,000, he didn't add a dime to this account.
March of 2020, he got 61.33% a year later,
because the market went up 66.33 minus 5%
he netted 61.33 tax-free.
How much did that equal?
$535,313 tax-free.
His account value went from 852,000 to 1,387,000
in one year.
That's what happened during COVID-19 during the crash
with clients who have IUL producers
who understand how to seize opportunities
when there's anxiety out there in the world, okay?
And so, this doesn't happen all the time,
but you seize these opportunities.
Now, the point I want you to understand is
if the next year the market had crashed 40%
which it didn't, it didn't do much, but it didn't crash 40%
he would never have lost the half a million he made
from 2020 to 2021.
You locked that in and you reset.
So if the next year the market crashed 40%,
he still has 1,387,000.
He may not make any money that year
but he doesn't lose any part of the 1,387,000
due to a market downturn.
That is the beauty of indexing and seizing opportunities.
So hopefully you're like, "Wow,"
that's what happens when there's anxiety.
And when COVID-19 caused the market to crash 30%,
we said link.
See, that's good news.
Most people, that was bad news,
because they had their money in the market,
they lost 30% and it took a year to come back to breakeven
and just come back and get their money back.
Here, our clients just capitalized on that.
So if this is resonating with you and you wanna learn more
I would love to gift you a copy
of my most recent bestselling book.
This is flying off of our warehouse shelves.
It's called "The LASER Fund"
and it retails on Amazon for $20.
And if you go there and purchase it,
thank you, you're gonna have to pay another maybe $10
for shipping and handling.
But I'll tell you what?
I'll gift you a copy for free.
I wanna share first of all
that it's actually two books in one.
This one, the white side is for the left brain learner.
It's about 200 pages, 14 chapters
with all kinds of charts and graphs and explanations,
if you're a left brain learner.
If you're a right brain learner
and you learn more by stories,
you simply flip it over to this side.
And this is about 100 pages
12 chapters with 62 actual client stories
of how max-funded IUL can be used for retirement,
college funding for your kids and grandkids,
working capital for business real estate management,
emergency funds, you name it, okay?
It's like a financial Swiss Army knife,
it's got all kinds of blades,
but if you wanna use your whole brain,
I would read both books.
But you simply go to LaserFund.com
or click on the link below.
You contribute a nominal amount
towards the shipping and handling.
I require a little bit of skin in the game.
And then I will pay for the book.
I'll fire out a hard copy to you
and I'll do that priority mail.
But while you're in there
if you like to listen and learn or watch and learn
there's options there for the audio and video.
You can even register
for an educational webinar that we do on a regular basis.
There's no charge for that, it's free.
And if you wanna schedule an appointment
with an IUL specialist that I oversee
and make sure they do it correctly,
you can actually schedule an appointment
in one of their slots and they will create illustrations
and show you how a properly-structured IUL policy
is deemed a LASER fund, liquid asset safely earning returns.
When you see how it may work
in your particular set of circumstances
then you'll be on the road to a brighter future.
(upbeat music)