I’M goingto talk about how to become your own banker and dowhat.
Banks do to make 100 percent rates of returnup to 500 rates of return yep and then my favoriteinstrument, which I call the laser fund and howthat, can predictably double your money. Probablyevery, seven and a half years based upon my actualhistory of using this instrument ever since 1980
.And, as you do that, I’m going to show you a conceptof, safe, positive leverage, which is the abilityto own and control assets with very little ornone of your money, is tied up At risk, in that asset.Leverage, without liquidity of stupidity, and I’m going to explain that to you and then by doingthis you’ll be able to do what banks do. Borroweven, your own money at a lower rate andcontinue to earn a hundred percent or moreon that money that you borrow and you useit for your business.
But you will accumulatemillions, not just 1 million, You do thisfor 15 20 30 years and you will end uplike many of my clients, with over 10 million extradollars by learning how to become your own banker.
So, let’s start with the milk and then we’ll get tothe meat. What do banks and credit unions do whatdoes the multi-trillion dollar insurance industrydo They’re the backbone of america, by the way, If you’re not aware in the great depression, therewas a lot of real estate that dropped 80 percentin value Banks closed 40 %, never reopenedagain The legal reserve Insurance companies in the great depression all came through with flyingcolors, not one, went under in the great depression.
It’S because they have to have reserves on handthat are liquid and safe in case of a run on theirinstitution, and so in 2008, when over 400 banksin America because of the mortgage meltdown. If youremember this, There were 400 banks in America, thatwent under 900.
More were on the brink. It’S calledthe watch list going under The federal governmentwas concerned. Now a lot of americans don’t realizehow close. We came to a total financial collapsein 2008
So the federal government asked the fivemajor banks in America to disclose where they hadtheir tier-one assets for liquidity and safety.
Guess where they had it In insurance companies, andthese insurance companies, maybe just credited thema, four or five percent.
This is in 2008. So let metell you what was happening: Banks in 2008, wereborrowing OPM, other people’s money.
Meaning when we put money into a bank or a creditunion, it’s in a lended position, Are they justa, benevolent institution, paying us interest, No.They’re loaning it back. They are investing it.
But they said that we put 30 to 40 percent of itfor liquidity and safety into insurance companies. They’Re bigger they’re, stronger, See some of theseinsurance companies where I have my money managetrillions of dollars. In fact, one has as much moneyas the IRS collects in taxes in an entire year, andthat’s just one insurance company. This is where many governments go to for help when they need itis to the multi-trillion dollar insurance industry. So I just bypass the bank, put my money where thebanks put it
But what were the banks doing Theywere paying?
Let’S say one percent
Now one percentevery million, they borrow at one percent interestor that they pay one percent interest to us, Onan annual basis they’re only paying out 10 grand. They turn around and put that millionin insurance companies and earn five
That’S what they were doing in 2008, How much moreis five than one Don’t say: four, it’s five hundredpercent is five times They were paying 10 grandand. They were earning 50,000 on that money. Wouldyou hire an employee for 10 grand that may do. Anextra, 50 grand
Would you buy a widget machine, for10 grand that made you an extra 50 grand?
You bet? That’S called a 500 % return on employment costs, orequipment cost business owners get this
So that’swhat banks and credit unions do Now you can becomeyour own banker.
So my favorite instrument, whereI bank, my own money – is in a max funded indexeduniversal life insurance contract and in otherepisodes on this channel. I talk about how to takethe least amount of insurance. The IRS will letyou get away with and put in the most money.
Theirs allows and it turns into a tax-free cash cow.Where. I have averaged, I earn 11 and I need 10.I’ve actually earned an average of 9.62 percenton.
My I call them laser funds ever since I beganowning them clear back in 1980.
Now, before I go anyfurther, if this is already arousing that curiositybe sure and post a comment, click like shareit with somebody
But subscribe to this channelit’s free and I post a new educational videoalmost on a daily basis. So here we go. Let’S saythat you get it and you begin to sock away, money.In other episodes on how to stack up a millionbucks.
I talk about just systematic accumulation.You. Could stock away 5,000 a month for 120months and you’ll have a million dollars tax-freein the laser fund?
Let’S say you put in 250,000and, then added a 2,000 a month and you did thatfor 10 years you’ll end up with a million bucks.
You can rent out an apartment on Airbnb for7,000 a month which is 350 bucks, a night andyour mortgage might be or your rent might be, twothousand You suck away that five thousand You’regoing to end up with a million dollars So let’stake that snapshot in time, because I Have manymany clients that I’ve mentored that end up withat least a million dollars or more
So far so good, So let’s take that snapshot in time You now haveone million in your laser fund, your max funded IUL.
Now here’s what savvy smart business owners do.They operate as their own bank
Now, listen veryclose,
Stay with me here, You have a million dollarsand. Now you see an opportunity. Now I have manyclients that invest in real estate, So I’m goingto use an example of one of my clients. Thathis specialty is to find multi-unit apartmentcomplexes that the seller just wants out.
They’Re, tired of being a landlord fixing, toilets, they’re, beating tenants and so forth. Andthey don’t want to even fix up the property. They just want to liquidate it, So he findsthose properties and he buys them and he fixesthem up and then he turns around and flips them.He. Doesn’T like to be a landlord himself either!
So, just like somebody that buys and flips houses byfixing them up. He buys big apartment complexes, andfixes them up and then flips them, because he hasa pool of investors that want to buy apartmentcomplexes that are fixed up and have good cashflow.
So far so good
He comes across one and itcould be golly: 10 million 15 20 million Manytimes. He needs an earnest money, So he will callme up and he’ll say “ Doug. I need a million dollarsto tie up this piece of property.
Send me overthat form”. Now it’s one page. I email it to him. Andhe has his laser fund, his IUL policy and he putshis name and his policy number, which is like anaccount number and then it says “. Would you like towithdraw a million out of your policy or would youlike to borrow
“, what do you think he does He’ssmart?
He borrows
See if he withdrew the millionnow, he doesn’t have the million in his policyearning interest. That’S okay, he can do that.He doesn’t have to pay tax when he withdrawsit, but he is a business owner.
He’S savvy So heborrows and people go. Why would he borrow his ownmoney There’s two ways he can borrow The first wayis called a zero wash or zero cost loan.
He cantell the insurance company “. You know, I think we’re headed for a recession.
So I will borrowa million” and in order for it to be tax-freethe, insurance company has to charge him at least anominal interest rate
So that might be two percent, So the insurance company is charging himtwo percent a year, which is 20 grand buthe doesn’t have to write out a check for 20,000.That loan is not doing payable during his lifetime.Because.
The insurance company is crediting onthat collateral. That million in the policy the same two percent
So he borrows it to theycredit to it’s a zero watch loan. It doesn’t costhim anything to call it a loan and that’s whatqualifies the million to be tax-free But he’ssavvy. Usually he will use the index loan like I do.Now.
What’S an indexed loan By the way, if this isgoing wow be sure and subscribe to this channel,
This is just the tip of the iceberg, folks, So he goes for the index loan, which means okay, youcan charge me four percent or five percent of mymillion. Why would you want to pay four or fivepercent to borrow a million out of your policywhen? You could just be charged two Because themillion that is still in your policy because youdidn’t withdraw it yeah, it’s just semantics.You’re borrowing by having your million ascollateral and now you’re saying “. Okay, you cancharge me five percent”.
He did this in 2017.
He borrowed a million out and they charged him fivepercent. What’S five percent on a million, That’s 50grand, He didn’t have to write out a check for 50grand Because they credited him the indexed ratethat year on the million that he left in thepolicy.
Guess what he earned in 2017, He capped out on his universal life at 25 %, 25 % on a million was250 grand. Are you with me?
They deducted 50,000 out of the 250,000. He earned he netted 200,000 dollars of growth on the million in his policytax-free. He netted twenty percent return tax-freeon his policy, while he was using the millionto, acquire an apartment, complex that he fixedup and he sold, and he made two or three million
Is this blowing you away? This is how many savvypeople accumulate millions of extra dollars byaccumulating in a laser fund, tax-free and thenbecoming their own banker and borrowing money.I, don’t care if you borrow money at five and youearn ten
How much more is ten than five A hundredpercent
Would you hire an employee for fifty grandthat made you an extra 100 grand?
I do that all daylong That’s actually been. The average is earning100 % more than the cost of borrowing out of a maxfunded IUL. Some years you may not other years, youmay make 25 %. As of the recording of this episodelast year, in 2021, we had clients on their indexeduniversal life, lock-in gains of 61
33 percent Yep. So let me just give you one other little aha here, Let’s say you borrowed a million out of anIUL policy at five percent and you could earn10 %.
But what do you do with a million Let’ssay you go out and buy five rental propertiesand. You only pay 20 % down on each of those
So the rental properties now are being rented out fordouble what the interest payment is being charged. So you got this positive cash flow and you’regetting some tax breaks because you’re able to dothat – or maybe you went to a mortgage company andborrowed it
You can leverage safely but maintainliquidity by putting it into the IUL, So you cantake that and pay it back into the IUL policyand. You can actually end up putting money backinto where over just a period of 10 years or soyou can end up with an extra 5.75 million bucksby borrowing on your IUL leveraging, safely onproperty and then taking the cash flow puttingit back into the IUL and you’re still earningmoney.
On the original balance that was in therebecause, you leveraged on your IUL
If your brain isgoing “ whoa”, you need to read my book, So here’s howyou can claim your free copy. This is book number11 and it’s been flying off of our warehouseshelves. It’S 300 pages. It’S called the laser fund.Laser is an acronym that stands for liquid assetsafely earning returns.
This will teach you how todiversify and create the foundation for a tax-freeretirement and you’ll learn in here and on thischannel, how you can accumulate an extra millionbucks, all kinds of different ways, But this is theworking capital account that most savvy investorsuse Simply go to laserfund.com or click On thelink below
You contribute a nominal amount, towardsthe shipping and handling I’ll cover the rest, ofthat cost
I will pay for the book I’ll fire out ahard copy to you. There’S options there to listenand, learn, watch and learn and also masterclasses18 hours. You can also register to attend webinarsthat. We teach because I’m passionate about helpingpeople, like you optimize assets and minimizetax, So claim your free copy read how otherpeople do this
This will help you achievefinancial independence, far safer and faster thanmost Americans do by following the herd, puttingtheir money in tax-deferred, IRAs or 401ks ina volatile market.
That is unacceptable to me..