don't let bad information rob you of one of the greatest Financial Tools in America what is it it is a properly structured Max funded index universal life when it's funded properly and it structured correctly and so uh let me show you some of the myths what I call myth conceptions about ilul and I'm going to dispel them uh in this episode get ready so I'm Doug Andrew and and I've been a financial strategist a retirement planning specialist now for five decades helping thousands of Americans uh Achieve Financial Independence prepare for long-term goals such as Retirement and preparing them so that they will not outlive their money primarily uh due to the negative impact of taxes inflation and Market volatility that's what causes most retirees to outlive their money so I make them immune from that by using Max funded index universal life now I have a lot of critics out there critics are a dime a dozen and um it's amazing as soon as they start to criticize it I roll my eyes because they simply don't know what they don't know so let's uh let's choose four of these myths out there uh the first one is that um uh the index universal life is going to implode or what they say crash and burn uh as you get older due to the cost of insurance going up I hear that and I ask go oh my Heavens you don't know what you don't know okay let me try to simplify this when you set up a a property structured um max funded index universal life uh many times of course I'm helping people that are uh between 55 and 75 years old for example because they're the ones that are beginning to realize by following the herd puty money and I rais in 401ks and what have you uh they are actually not in a lower tax bracket when they retire like they were told they were going to be and they're going to outlive their money due to the negative impact of taxes in place in a market volatility so they come to me and they want to reposition underperforming or nonperforming non-performing assets and what I mean by that is uh they're wanting to reposition assets that are uh not passing the liquidity test the safety test meaning they can lose their principle because of Market volatility or whatever the rate of return test the rate return uh you know their advisor saying well we only want you to pull up 4% the 4% rule because dalbar says the average person with uh money in the market in higher raise of 41k is only averaging 3.49% rate of return and that's why they came out with a 4% rule so they want to increase their rate of return and uh they realizing tax deferred didn't cut it they now want to switch to taxfree and so I go this is a no-brainer let's set up a Max funded index Universal I well uh um we even have whole life insurance agents that will criticize IL and say well this is going to crash and burn the cost of insurance going to go through the roof uh whole life has these guarantees I it's guaranteed not to lapse well they're having a harder and harder time having the guarantees in whole life which are now less than 4% uh doing that they can't argue that much anymore but let's not go there uh they don't know what they don't know okay first of all um if I'm going to structure it correctly and uh a 60-year-old male comes to me uh and is preparing for retirement in 5 years and uh they have a couple of hundred thousand that they will net out of getting money out of their ir and 401ks they want to get money out of their IR IRAs and 401ks in the volatile Market get the taxes over and done with sooner than later in today's lower tax brackets and then reposition the net into something that's going to be taxfree from now on and when they ultimately die uh it's it's going to reimburse them for the taxes they incurred that's that's what the strategy does I been I I've done this for thousands of people and saved School teachers a quarter of a million real estate landord landlord three4 of a million I saved a husband and wife both positions 1.2 million of unnecessary tax doing strategic rollouts we took one couple in California uh from the highest tax bracket to a 0% tax bracket in 5 years they had 6 million in IR raas of 41k we been fit the bullet in 5 years we paid a third 2 million in tax we netted 4 million into their IL they took out four ilul policies uh two on the husband two on the wife and uh in five years 4 million uh had grown and then two years later it was worth 8 million so they averaged uh about 10% and they're continuing to do that by rebalancing and so now they have $8 million now the am of insurance when they set it up to accommodate 4 million was 8 million now their cash value has grown to equal and now it's exceeding the original death benefit meaning the insurance is not costing them anything okay now technically speaking uh under the te different tax citations if they die the insurance company must pay 5% more than their cash value uh and the death benefit has to stay 5% ahead of it but the insurance company's only charging them for that little 5% so let me back up and explain this if this 60-year-old okay puts in 500,000 and uh the minimum death benefit under te and defra is a million okay now I could buy way more life insurance than a million with 500,000 that's not the objective so I'm putting in 500,000 and um I'm taking a million dollars death death benefit now I'm going to have to fund that 500,000 uh no faster than let's say five installments 100 Grand let's say the first day of the first year 100 Grand the first day of the second year in four years and one day into the fifth year I now have my 500,000 in the I policy so far so good what was the death benefit a million now if I use the increasing death benefit that's not smart for an older person when the objective is ready to return I use the level death benefit which means as I put put money in and I earn interest on that that qualifies as part of the death benefit so if I have 500,000 in that now and the original death benefit is a million and I die they're only going to pay out a million but the insurance company is only uh at risk for the remaining 500,000 uh half of that million is your own money they don't charge you for money that is yours in there they charge you for the difference between the original death benefit and your cash value so they're only charging you for half as much Insurance in as soon as four years in one day this is true for many of our clients well many of our clients have averaged 9 or 10% 99.6% into the rule of 72 means that 500,000 will double to a million uh because they're netting over that but it'll double in seven and a half years so many of my clients by 11 and a half 12 years of of the I policy their cash value has now grown to equal and exceed the death benefit why do I need the guarantees that a whole life policy offers because whole life there is no way the cash value in a whole life policy would grow to equal and exceed the death benefit by the 11th year that's why whole L people say well we have these guarantees the death benefit will be in forc why do I care when my cash value has grown to equal and exceed the death benefit I don't need any guarantees because my money equals exceeds the death benefit if that million in another 7 and a half years doubles a 2 million if I die they'll pay out 2.1 million but the insurance companies only charging me for a 100,000 of actual net amount at risk but the interest on 2 million dwarfs the cost of insurance on 100,000 this is why Insurance gets cheaper as you get older uh my clients who have had ilul for 25 and 30 years retracted back to day one if they earned an average of 11 uh their net 10 but if you took the snapshot in time of the 30th year when everybody's saying oh it's going to implode it's going to crash and burn uh if they earned 11% in the 30th year their net rate of return is maybe 10.95 the cost of insurance only drains out one uh one 12th of 1% hello it's not going to crash and burn when it's done right so when when they they criticize it I I just roll my eyes they don't know what they don't know let's go to another myth okay that level is the devil this relates to what I just explained uh so many even uh I people uh their their main you know uh customer base may be in the 30s and 40s that's okay if if you're selling uh index universal life to a 30-year-old uh then uh you can use the increasing death benefit of all they're doing they don't have any lump sums to put in they're just talking to away 500 a month but the problem is too many those agents sell iul at Target Premium if I if you uh are lucky enough to earn seven or eight you're only going to net two or three no you need to take the least amount of insurance you can get away with so that if you earn eight you net seven but you need to diversify and rebalance that's the biggest problem with most IL agents but to sit there and say level is the devil I go oh my Heavens you don't know if you're working with a a 55 60 year old like I just said a minute ago and they're going to fund it in 5 years or 10 years you take the level death benefit so that you become self-insured so that your cash value can grow to equal and exceed the death benefit really soon what about the younger person you can use the increasing death benefit uh while they're socking away 500 a month until when until they stop putting premiums in that policy then you switch to the level death benefit because if you keep the increasing death benefit it can get expensive if the agent is not rebalancing and staying Diversified so that you can earn 11 and Net 10 if you're if you're lucky to earn eight and you're netting two because you had way more Insurance you needed then the increasing death benefit will cause that policy to possibly Crash and Burn uh so the people who say level is the devil I just go bless your little heart you you have no clue what you're talking about okay now here's another myth that index universal life is simply permanent life insurance wherein the cash values are invested in an index mutual fund I'll just cut to the chase here no no see this is what Dave Rams in his team thinks uh let me just say if you uh thought that that's what indexed universal life was then in the year 2008 uh if you had your money a million dollars in an in an ilul that means um if you had it in the S&P 500 Index okay that means you would have lost 40% that year and you would have lost 40% from 2001 to 2003 when Americans had their money in an index fund like the S&P 500 in 2001 to 2003 they lost 40% it took four years to make back what they lost until 2007 for the second time in a decade they lost 40% again in 2008 it took four years until 2012 to make back what they lost if you had indexed universal life linked to the S&P 500 your money is not invested uh directly in the S&P 500 okay it's linked to an index meaning your million dos is safe in the insurance company earning the general account portfolio rate like during that era that was at least 5% anytime you want you can settle for 5% that's that's 50 Grand and uh our clients uh got that uh for um five even seven of the years uh only two years did they not but but the other years they link to an index okay now when you link to an index you're taking the interest on your million and you're giving it to the insurance company to fund an options budget your million is safe in the insurance company it's not invested in the S&P you're relinquishing the interest on your million so they can buy upside options in the index you choose so they'll have the wherewithal to credit you 8 1216 see in that Great Recession our clients uh two years one got credited 177% capped out the other one in 2009 CT out at 16% um they only capped out two of those years uh the other three years uh they they got a nice rate of return but by rebalancing they didn't have five years of zero where they they didn't make anything but they didn't lose because we had them switched back over to the general account portfolio rate at at their annual reviews and they ended up getting credited 5% and that's why our clients were able to move from 7.23% up to 11.17% by rebalancing so there could be nothing further than the truth and um unfortunately agents do not understand indexing it's different than an indexed fund okay and I'm going to show you how you can study this now the the final myth I want to talk about is when using the banking concept how to become your own Banker uh that whole life insurance is superior and I go oh dear okay now can you use whole life yeah but it's whole hum in my opinion with whole life um unless you're taking risk with variable whole life um you're borrowing your money out of the insurance policy and you're going to be lucky to earn one and a half 2% greater than their charging you yeah that's works but oh my heaven you could be using the banking concept on steroids um so for example most of our clients uh they use the banking concept and let's just use a million dollars of cash value and you can extrapolate from that they usually will uh leave the cash value in the insurance uh policy in the company and they'll borrow from the insurance company based upon that collateral and uh they can use a zero wash loan where they borrow at 2% get credit at 2% but if you understand the banking concept and you think uh you know the economy is going to go up you use an index loan so that's where you pay a higher interest rate like four or 5% let's even take 5% uh many times I've paid five and my clients have paid 5% but they don't have to write out a check for that on a million dollars that's 50 Grand but on the average on the million that they left in the policy as collateral to borrow a million of 5% they get credited uh 10 and 11% let's just say 10 how much more is 10 than five it's 100% more they're making 100% more than the cost of the funds they're not making a two-point spread they're making a fivepoint spread so to speak they're making uh 50,000 taxfree on their million while they're using it for whatever they're doing in their business or the real estate but it's not just that uh in 2017 I had a client a business owner who borrowed a million at 5% and that year he got credited 25% he kept out at 25% sometimes you get credited 61% when we use a one-year pointto point with no cap but in 2017 he said Doug this is incredible uh I was willing to pay 5% in hopes that I would get credited 10 he paid five they deducted 5% from the 25% they credited him on his million so his million got credited 25 5% that's 250 Grand he had a mil 250 Grand minus 5% which is 50 he ended up netting a,2 200,000 he made 20% 200 Grand taxfree on his money while he was actually using the million to make about 3 million uh he was buying a a strip M fixing it up and flipping it for a $3 million profit you show me any whole life policy that does that and protects you in case you guess wrong in the market Market goes down because you can't do that uh with variable whole life and protect yourself in case the market drops 40% or you will lose so uh IL is like uh the banking concept on steroids those are just four myths I could go through dozens of them but um uh you need to make sure you learn the truth and so I would recommend you study my book the laser fund which is actually two books in one this white covered side is is about 200 Pages 14 chapters with all the charts and graphs and explanations if you're a left brain learner if you're more of a right brain learner you can flip over to this one the orange covered side there's about 100 Pages 12 chapters with 62 actual client stories okay uh or you can use uh both your uh right and left brain but uh you ought to begin to understand this or you're going to miss the boat whether you're an advisor or you're a member of the general public so uh don't let bad information r rob you of one of the greatest Financial Tools in America because you get you buy into this misinformation out there and so I want to dispel those myths simply go to laser fund.com or click on the link below contribute a nominal amount towards the shipping and handling I'll cover the rest of that and I'll pay for the book I'll fire out a hard copy to you via priority mail but while you're in there claiming your free copy if You' like to listen and learn or watch and learn there's uh those uh formats available uh you can register for register for a free webinar that we teach on a weekly basis uh but if you want to talk to an ilul professional that's been certified uh and it's not an easy exam you you don't get certified by passing this exam with a 70% or even an 80 or 90 you have to pass it with 100% before you become certified and uh so if you want to schedule an appointment when you're claiming your book you can do that and you will be talking with a certified IL professional so that it's done correctly instead of correctly like I've been alluding to here okay so this is not about me this is about you and your brighter future claim your free copy of the book and I'll see you on the other side of your brighter future [Music]

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