a normal financial advisor like Dave Ramsey or Susie Orman they wouldn't even understand 70% of the questions because they they don't know this they're not taught this you may become one of those sad stories that I hear all the time Mr Andrew uh our IL policy uh we put in a half a million dollars and you say that in the last s and a half years it would have doubled to a million our five 00,000 is only worth 3/4 of a million half that what's wrong and I I take about 30 seconds to look at it and I go oh my Heavens who designed this for you what is a certified iul professional so far only about 10% uh can pass a proficiency exam but if you would like to be pointed to or introduced to a certified IL professional uh I want you to reach out at the end end of this episode so that we can hook you up with somebody who knows how to do it correctly but I'm going to share with you uh what we do in order to train them and also uh how difficult this exam is so that when you uh meet with a certified U professional you'll know they do have to understand this backwards and forwards so I'm Doug Andrew uh I've been a financial strategist and retirement planning specialist now for five decades helping my own clients uh optimize assets minimize taxes and and uh Empower their authentic wealth I've helped thousands of Americans prepare for a comfortable retirement uh to make themselves immune from taxes inflation and Market volatility so they will not outlive their money uh so that they can earn an average uh rate of return between 7 to 10% or higher by utilizing property structure maximum funded iul and so that every million dollars that they accumulate can generate a 10% payout a 100,000 a year of tax-free income if they retired at age 65 without depleting principal if they live to be 120 now there's a lot of Agents or financial professionals go no way I've never seen an insurance policy do that which is sort of ridiculous to me because because they haven't seen it they think it doesn't exist which is uh as shallow of reasoning as well uh have you ever seen your brain how do you know that exists okay uh if it is structured correctly in fended properly uh it is actually the dream solution for many financial goals knocks the socks off of Bier of 401ks especially invested in the market uh it also outperforms um annuities it outperforms uh money invested in the market or even money in whole life there's a lot of whole life agents that are in in my opinion sort of brainwashed by their supervisors and then I asked them okay show me a whole life policy that can generate a 10% payout from age 65 to age 120 without uh crashing and burning depleting the policy I've yet to have a whole life agent be able to do that and so three years ago I decided to resurrect or um bring out of my Vault uh the basic training that I did for four years from 2003 to 2007 I actually put my own personal practice on the back burner uh in 2003 when my second book Miss Fortune 101 became a national bestseller and uh for uh those four years 48 months I trained over 3,000 CPAs tax attorneys financial advisors on uh the proper structure of ilul to be able to use that as a dream solution for retirement for College funding for kids working capital for business real estate Management on and on and on now what happened is some of those agents they paid $6,000 in tuition to come through my training and uh then they went out and we had 2008 happen now I would ask some of these agents uh how come uh you didn't stick with it and keep your client safe from that market downturn they said well Doug we didn't think that the market would drop 40% in one single year we know it dropped 40% over a three-year period 2001 to 2003 we never dreamed it would happen in one single year we didn't think uh you know we thought what our clients didn't know wouldn't hurt them we were wrong I guess and it did I go oh my heavens and then I discovered if they didn't use it they would lose it I created a Prof efficiency exam back then comprised of a 100 question multiple choice true and false and another 30 essay questions and uh only about 10% of those 3,000 agents could pass that proficiency exam whoa uh they needed to come through and learn better or get uh Revisited but if you don't use it you lose it and that frustrated me so after 2008 I decided you know what I'm just going to with a small nucleus of Agents uh service our own uh clients and I got down to a dozen agents uh that uh knew how to do it absolutely correctly and we operated extremely successfully uh from 2008 until uh 200 18 and 19 and then I said okay now it's time uh again for me to sell the recipe instead of selling the cake and I took my training out of the the archive and um the Vault where I sort of locked it up and I tweaked it to update it and I started an organization called ilul insiders and this is where I invite uh agents who uh are licensed to uh sell ilul to their clients to come and join us now there's only a a small handful that really want to learn how to do this correctly and professionally who will put some skin in the game and uh invest a much smaller amount than they would getting a college degree or anything like that uh but I designed this organization about three years ago from the recording of this episode and uh we have over um uh a thousand agents that have come through and joined iul insiders uh some again will not invest the time energy and resources to do it correctly they go out and they they still don't know how to structure it correctly and I just go come on but those who uh stay with and do there's about a thousand uh that have made this their primary um profession and they want to make sure that they do it correctly for their clients those are my kinds of people and so out of 5,000 iul agents that uh I have been involved with still only about 10% uh have been able to pass a proficiency exam it's not an easy exam so we updated this exam and it includes uh 12 12 extremely difficult case studies that they have to pass and also a lot of very uh intricate questions that to be honest with you a normal financial advisor like Dave Ramsey or Susie Orman they wouldn't even understand 70% of the questions because they they don't know this they're not taught this and no wonder they criticize something that they don't understand because they've never been taught how it's done correctly okay so I don't follow them in some ways except that they poooo something they simply don't understand well uh this proficiency exam is designed to certify iul agents and so uh we have those that are going through this this very in-depth training to become a a certified IL professional now if I were a member of the general public I would want to be hooked up with one of these certified iul professionals to make Absolut sure that the IL policy that I was setting up was done correctly in funded property why uh I'll just cut to the chase uh there are many many ilul agents that ignorantly they just don't know what they don't know that go out and um they ask you how much you can sock away on a monthly basis let's say 500 a month thousand a month and then uh they uh actually Outsource the illustration to somebody in their company uh who then uh determines the death benefit to accommodate 500 a month or thousand a month in savings but they don't know what they're doing they don't realize how to structure it correctly it's amazing how many of those uh people that prepare illustrations do not know what they're doing so so what does this mean at the end of the day it means this that uh if it's done correctly then by rebalancing and diversifying with annual reviews you move your chances from getting an average rate of return from maybe 7% up to 11% that's huge but if you don't then you might be lucky to get 7% average rate of return on an IL policy but here's the other big difference your net internal rate of return what's that you can't believe how many AG just don't even know what that means internal rate of return means cash on cash rate of return as if the insurance was free because a lot of people came to me not particularly wanting or needing life insurance death benefit they wanted the best financial instrument to accumulate money uh that would uh outperform irer 411k is invested in the market that's where I could earn 11 and Net 10 because mutual funds and IR of 401ks you have to earn 15 or 16% to Net 10 after taxes and fees at the end of the day if it's not structured correctly with the amount of death benefits uh squeezed Down Under the teer def Tamar Tech citations which we teach uh if you were lucky enough to earn seven you might only net three in other words 4 percentage points are gobbled up in the cost of the insurance because they didn't structure it correctly is that why you uh took one out to net a 3% rate of return you might as well have followed the herd and put your money in an IR a 41k almost you would still probably barely outperform those at the end of the day but folks you want to move from let's say 7% up to 11% or even 14% by diversifying and rebalancing we teach that but if you're going to earn 11 you want to net over 10 cash on cash I have averaged 11.17 netting 10.07 that's taking the least amount of insurance the IRS will let you get away with under te and defer tax citations okay and funding it as fast as the IRS allows under the Tamara tax citation when you do that then you can accumulate your cash values to where for most of my clients through the years the uh cash value in the ilul policy grew to equal or exceed the death benefit Within 12 to 15 years this is what whole life agents don't understand they go well whole life has guarantees in there so that the death benefit um will stay in force for uh as long as you live well if my cash value in an ilul policy uh grows to equal and then exceed the death benefit by the 12th year or the 15th year uh if I started out with the death benefit of a million and my cash value grows to a million and then to two million uh why do I need guarantees of a death benefit when my cash value exceeds the death benefit because now there is no cost for the insurance except a minuscule portion that keeps uh if you happen to Die the payout 5% greater than the cash value it is the best way to buy term and invest the difference uh and it blows uh the the normal buy term invest the difference out of the water you can't believe how many agents don't know how to do what I just said and so the the whole purpose of this is knowing how to do it correctly so that you have a better chance of earning an average return in that 10 11% range but netting within 1% of the gross rate of return retroactive back to day one it also uh will help you understand how to be able to access that money totally tax-free and become your own Banker so if you're interested in making sure that an iul policy is structure collecting and funded property I would strongly recommend that you reach out to us go to I insiders.com or threedimensional wealth.com and we can point you to an advisor that has actually gone through and passed a proficiency exam and if they've done that they know what they're doing if not you may become one of those sad stories that I hear all the time Mr Andrew uh our IL policy uh we put in a half a million dollars and you say that in the last s and a half years it would have doubled to a million our 500,000 is only worth three4 of a million half that what's wrong and I I take about 30 seconds to look at it and I go oh my Heavens who designed this for you oh our nephew uh uh my brother-in-law he had a he had an insurance license why was that an expensive relationship and so now they have to start over and I we have to correct uh and and make sure it's structured correctly don't make those mistakes seek out an iul professional that is certified that has proven by passing a proficiency exam if you do that you will not regret it so if you're a professional watching this episode right now you need to connect with iul insiders go to I insiders.com and uh register for an educational webinar join our organization get certified so that you can learn how to do it correctly and do the best job for your clients that's my goal I want iul to be a household word I want people to be able to understand that if it's done correctly it knocks the socks off of traditional accounts like IRAs and [Music] 41k
Tax-Free Retirement Planning