The fifth of five ways to stack up an extra
million bucks. In this episode, I'm going to address how to become your own banker to make
100% returns. Get ready, it's going to blow you away. So, my name's Doug Andrew and I've been helping
people optimize assets and minimize taxes prepare for a comfortable retirement so they will not
outlive their money now for more than 48 years. But in this episode, get ready, because I'm going
to give you a sneak preview right now. I'm going to talk about how to become your own banker and do
what banks do to make 100 percent rates of return up to 500 rates of return yep and then my favorite
instrument which I call the laser fund and how that can predictably double your money probably
every seven and a half years based upon my actual history of using this instrument ever since 1980.
And as you do that, I'm going to show you a concept of safe positive leverage which is the ability
to own and control assets with very little or none 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 doing
this you'll be able to do what banks do borrow even your own money at a lower rate and
continue to earn a hundred percent or more on that money that you borrow and you use
it for your business. But you will accumulate millions, not just 1 million. You do this
for 15, 20, 30, years and you will end up like many of my clients with over 10 million extra
dollars by learning how to become your own banker. So, let's start with the milk, and then we'll get to
the meat what do banks and credit unions do what does the multi-trillion dollar insurance industry
do. They're the backbone of america by the way. If you're not aware in the great depression there
was a lot of real estate that dropped 80 percent in value. Banks closed 40% never reopened
again. The legal reserve insurance companies in the great depression all came through with flying
colors not one went under in the great depression. It's because they have to have reserves on hand
that are liquid and safe in case of a run on their institution and so in 2008 when over 400 banks
in America because of the mortgage meltdown if you remember this. There were 400 banks in America that
went under. 900 more were on the brink it's called the watch list going under. The federal government
was concerned. Now, a lot of americans don't realize how close we came to a total financial collapse
in 2008. So, the federal government asked the five major banks in America to disclose where they
had their tier-one assets for liquidity and safety. Guess where they had it? In insurance companies and
these insurance companies maybe just credited them a four or five percent this is in 2008. So, let me
tell you what was happening. Banks in 2008 were borrowing OPM other people's money. Meaning,
when we put money into a bank or a credit union it's in a lended position. Are they just
a 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 it for liquidity and safety into insurance companies,
they're bigger they're stronger. See, some of these insurance companies where I have my money manage
trillions of dollars. In fact, one has as much money as the IRS collects in taxes in an entire year and
that's just one insurance company. This is where many governments go to for help when they need
it is to the multi-trillion dollar insurance industry. So, I just bypass the bank put my money where the
banks put it. But what were the banks doing? They were paying let's say one percent. Now, one percent
every million they borrow at one percent interest or that they pay one percent interest to us. On
an annual basis they're only paying out 10 grand. They turn around and put that million
in insurance companies and earn five. That's what they were doing in 2008. How much
more is five than one? Don't say four, it's five hundred percent is five times. They were paying 10 grand
and they were earning 50,000 on that money. Would you hire an employee for 10 grand that may do an
extra 50 grand? Would you buy a widget machine for 10 grand that made you an extra 50 grand? You bet.
That's called a 500% return on employment costs or equipment cost, business owners get this. So, that's
what banks and credit unions do. Now, you can become your own banker. So, my favorite instrument where
I bank my own money is in a max funded indexed universal life insurance contract and in other
episodes on this channel I talk about how to take the least amount of insurance the IRS will let
you get away with and put in the most money the IRS 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 percent
on my, I call them laser funds ever since I began owning them clear back in 1980. Now, before I go
any further, if this is already arousing that curiosity be sure and post a comment, click like, share
it with somebody. But subscribe to this channel it's free and I post a new educational video
almost on a daily basis. So, here we go. Let's say that you get it and you begin to sock away money.
In other episodes on how to stack up a million bucks I talk about just systematic accumulation.
You could stock away 5,000 a month for 120 months and you'll have a million dollars tax-free
in the laser fund. Let's say you put in 250,000 and then added a 2,000 a month and you did that
for 10 years, you'll end up with a million bucks. You can rent out an apartment on Airbnb for
7,000 a month which is 350 bucks a night and your mortgage might be or your rent might be two
thousand. You suck away that five thousand. You're going to end up with a million dollars. So, let's
take that snapshot in time because I have many many clients that I've mentored that end up with
at least a million dollars or more. So, far so good? So, let's take that snapshot in time. You now have
one 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 very close. Stay with me here. You have a million dollars
and now you see an opportunity. Now, I have many clients that invest in real estate. So, I'm going
to use an example of one of my clients that his specialty is to find multi-unit apartment
complexes that the seller just wants out. They're tired of being a landlord, fixing toilets,
they're beating tenants, and so forth, and they don't want to even fix up the property,
they just want to liquidate it. So, he finds those properties and he buys them and he fixes
them 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 by fixing them up he buys big apartment complexes and
fixes them up and then flips them because he has a pool of investors that want to buy apartment
complexes that are fixed up and have good cash flow. So far so good? He comes across one and
it could be golly 10 million, 15, 20 million. Many times he needs an earnest money. So, he will call
me up and he'll say, "Doug, I need a million dollars to tie up this piece of property. Send me over
that form", now it's one page. I email it to him and he has his laser fund his IUL policy and he puts
his name and his policy number which is like an account number and then it says, "Would you like to
withdraw a million out of your policy or would you like to borrow?", what do you think he does? He's
smart he borrows. See, if he withdrew the million now he doesn't have the million in his policy
earning interest. That's okay, he can do that. He doesn't have to pay tax when he withdraws
it but he is a business owner. He's savvy. So, he borrows and people go why would he borrow his own
money? There's two ways he can borrow. The first way is called a zero wash or zero cost loan. He can
tell the insurance company, "You know, I think we're headed for a recession. So, I will borrow
a million", and in order for it to be tax-free the insurance company has to charge him at least a
nominal interest rate. So, that might be two percent. So, the insurance company is charging him
two percent a year which is 20 grand but he 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
on that collateral that million in the policy the same two percent. So, he borrows it to they
credit to it's a zero watch loan it doesn't cost him anything to call it a loan and that's what
qualifies the million to be tax-free. But he's savvy. Usually, he will use the index loan like I do.
Now, what's an indexed loan? By the way, if this is going 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 you
can charge me four percent or five percent of my million. Why would you want to pay four or five
percent to borrow a million out of your policy when you could just be charged two? Because the
million that is still in your policy because you didn't withdraw it yeah, it's just semantics.
You're borrowing by having your million as collateral and now you're saying, "Okay, you can
charge me five percent", he did this in 2017. He borrowed a million out and they charged him five
percent. What's five percent on a million? That's 50 grand. He didn't have to write out a check for 50
grand. Because they credited him the indexed rate that year on the million that he left in the policy.
Guess what he earned in 2017? He capped out on his universal life at 25%, 25% on a million was
250 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 policy tax-free. He netted twenty percent return tax-free
on his policy while he was using the million to acquire an apartment complex that he fixed
up and he sold and he made two or three million. Is this blowing you away? This is how many savvy
people accumulate millions of extra dollars by accumulating in a laser fund tax-free and then
becoming their own banker and borrowing money. I don't care if you borrow money at five and you
earn ten. How much more is ten than five? A hundred percent. Would you hire an employee for fifty grand
that made you an extra 100 grand? I do that all day long. That's actually been the average is earning
100% more than the cost of borrowing out of a max funded IUL. Some years you may not other years you
may make 25%. As of the recording of this episode last year in 2021 we had clients on their indexed
universal 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 an IUL policy at five percent and you could earn
10%. But what do you do with a million? Let's say you go out and buy five rental properties
and you only pay 20% down on each of those. So, the rental properties now are being rented out for
double what the interest payment is being charged. So, you got this positive cash flow and you're
getting some tax breaks because you're able to do that or maybe you went to a mortgage company and
borrowed it. You can leverage safely but maintain liquidity by putting it into the IUL. So, you can
take that and pay it back into the IUL policy and you can actually end up putting money back
into where over just a period of 10 years or so you can end up with an extra 5.75 million bucks
by borrowing on your IUL leveraging safely on property and then taking the cash flow putting
it back into the IUL and you're still earning money on the original balance that was in there
because you leveraged on your IUL. If your brain is going "whoa" you need to read my book. So, here's how
you can claim your free copy. This is book number 11 and it's been flying off of our warehouse
shelves. It's 300 pages it's called the laser fund. Laser is an acronym that stands for liquid asset
safely earning returns. This will teach you how to diversify and create the foundation for a tax-free
retirement and you'll learn in here and on this channel how you can accumulate an extra million
bucks all kinds of different ways. But this is the working capital account that most savvy investors
use. Simply go to laserfund.com or click on the link below. You contribute a nominal amount towards
the shipping and handling I'll cover the rest of that cost. I will pay for the book. I'll fire out a
hard copy to you. There's options there to listen and learn, watch and learn, and also masterclasses
18 hours. You can also register to attend webinars that we teach because I'm passionate about helping
people like you optimize assets and minimize tax. So, claim your free copy, read how other
people do this. This will help you achieve financial independence far safer and faster than
most Americans do by following the herd putting their money in tax-deferred IRAs or 401ks in
a volatile market. That is unacceptable to me.
