What Is Safer Than A Bank Or Credit Union To Save Money - YouTube

This is safer and pays far more interest. In  this episode, I'm going to address the question,

"What is safer than a bank or credit union to save  money?" Get ready. It's probably not what you think.

Hi, my name's Doug Andrew and I've helped many  many thousands of people optimize their financial

assets by increasing the liquidity, the safety and  the rate of return on their money to prepare for  

long-term goals like retirement. Whatever you're  saving money for, whether it's a college funding  

for your children or grandchildren, retirement, real  estate, a vacation ,whatever your goals are, people  

are concerned about safety and they should  be. But, safety actually has 2 different  

meanings when it comes to money. Are we talking  about safety of the financial institution where  

we house our money or we invest our money or  are we talking about safety of principle?  

A lot of people go, "Hmm. I haven't thought about  that one." Safety of principal means this. Whatever  

I set aside or invest, and that's the principle, my  basis. I want it to be safe from loss and people go,

"Well, yeah but you've got to take some risks." Yeah,  we want the highest returns at the lowest risk but  

you're going to give up some safety if you're  going to go for a little bit higher rates of  

return. But I would like to have my cake and eat  it too. I'd like to have the greatest amount of  

safety possible and not have to give up on rate  of return. I'm going to show you how to do that  

because I want to not lose any of my  principle but even further than that, any year  

that I make money on my investment , I want whatever  I made in a given year to be locked in and become  

newly protected principal. So, if I have a hundred  thousand and at the end of the year I have 150,000,  

now I want the 150,000 that it grew to to never  lose money from that point forward, so that all the  

money you make is newly protected principle. Now,  most financial advisors go, "Huh? How do you do that?"

because unfortunately, they've never been taught  how to provide that safety for their clients.  

I'm going to show you how you can do that.  When we talk about safety of the institutions,

there are different rating agencies out  there. Generally there's 5 or 6.

The rate of banks, credit unions, insurance,  companies, financial institutions  

on different scales and if it's an insurance  company, it could be AM best. If it's simply any  

corporation, it could be S&P, standard and poor's  and their rating system is different than maybe AM

best. AM best may have the highest rating being A  plus plus whereas standard and poor's, their highest  

rating is triple A and then you have Fitch and  Moody's and Weiss and all these others and so  

sometimes it's confusing. So, what I like to do  is look at a combined score, there's a company  

called vital signs, and it rates based upon all of  these rating agencies and assigns a Comdex score  

of which institutions are ranked in the top 10%  or the top 20% or whatever. And so, if you  

were to choose a company that they rank 85, it  would mean that it's in the top 85 percentile, okay?

Or a score of 90 it's the top 90 percentile.  So, when you choose a company that is a legal  

reserve company like an insurance company, I think  those are some of the safest places to park money  

because the legal reserve system. So, I believe  that the multi-trillion dollar insurance  

industry would be the last domino to fall  if things got really bad and it's based on  

actual history. So, let's go back to the great  depression, for example. In the great depression,

some real estate dropped 80% in value. Did you know  that? Banks closed. 40% never reopened again.

Guess how many legal reserve insurance companies  went under in the great depression? 0. 

Most of them came through accrediting to, 2 and  a half, 3 three and a half percent. Right now  

that sounds pretty good, right? What about 2008?  Now, a lot of Americans don't realize in 2008 we  

came so close to a total financial collapse in  this country. In fact, that's why David Walker, the  

comptroller for the general accountability office  resigned because the Obama administration refused  

to allow him to tell the American public the truth  of how much trouble we were really in. Well, what  

happened in 2008? 400 banks went under. 900 more  were on the brink of going under, what is called  

the watch list. And so, guess how many legal  reserve insurance companies went under in 2008?

0, okay? That's why I put my serious cash into  insurance companies. Now, not just any company  

because I get very picky. I want the ones that are  generous that pay great rates of return so I use  

those that offer indexed universal life and you'll  see why as I continue here. But in fact, the federal  

government asked the 5 major banks in America  in 2008 to disclose where they have their tier one  

assets for liquidity and safety. Now,  what's a tier one asset? Before I explain  

what a tier one asset is, if this is intriguing  you, be sure and share this video, click like,  

comment, subscribe. Click the little bell so you'll  be notified every time I post an in-depth answer  

to a financial question which is almost on a daily  basis and stay with me to the end, I want to gift  

you a copy of my most recent 300-page best-selling  book, The Laser Fund, okay? So, a tier one asset is

where banks, credit unions will have their  money that's liquid, they can get to it  

when they need it, maybe with an electronic  transfer, phone call. It's liquid and safe  

where they can grab money in case of a run on the  bank. Where there's a lot of people that need money  

all at once sort of like the run on banks that  happened back just before the great depression.

So, this is called their tier one assets.  Do you know where the 5 major banks  

have 30 to 40% of their tier one assets for  liquidity and safety? In insurance companies, hello?  

Off times it's in BOLI, bank owned life insurance,  is the acronym BOLI. Corporations disclosed they  

had it in COLY. This is where I had my corporate  assets, okay? Corporate owned life insurance, why?  

Because in a maximum funded insurance  contract into an insurance company,

you don't even have to link to an index to earn  10% or higher like I have for many many years, you  

can just settle for the general account portfolio  of the insurance company that's usually earning  

about 5%, sometimes 6%. So,  back in 2008, most of the insurance companies  

were earning about 6% on their general  account portfolios, that's where they have their  

billions or even trillions of dollars. One  insurance company where I have some of my  

money manages about 3 and a half trillion  that's as much as the IRS collects in taxes  

in an entire year, just one insurance company. Now,  they diversify it and they may loan out money on

skyscrapers, shopping malls and so forth and  they have it invested in double A and AAA

bonds and what have you, a little bit in stocks  but they're very conservative but they earn a  

general account portfolio rate in a low interest  environment. Back in 2008, they were earning about  

6, they keep about one of those percentage  points for themselves and they're netting 5.

I can settle for just 5%. If I have a  million dollars in there, I can take out 50,00  

tax-free or let it sit there and compound and  grow but with indexed universal life, anytime  

I feel bullish about America, I can tell the  insurance company, "You know what? Take the  

interest on my million," in this example that would  be 50,000 at 5%, "and put it in an  

options budget and buy upside options in the index  or indices of my choice." And so, they offer the S&P

500 or the Dow Jones or whatever, this is explained  in the book I'm going to give you. And then those  

options, if the market goes up double or triple, and  the insurance company contractually must pay me  

10% or 15% up to a cap. But, what if the market  crashes and drops 40% like 2008? Nobody that owned  

indexed universal life in 2008 lost any money  due to market volatility. They may not have made  

anything but they didn't lose. In other words  the options expire worthless. You relinquish the  

for sure 5% that your million was safe  because your money is not at risk in the market.

So, this is where banks disclosed they  had their money. So, let me connect  

the dots for you if you haven't already. The last  10 or 20 years, banks have been borrowing our money.

"What? Borrow?" Yeah. Think about it. There's only 4  things you can do with money. You can spend it, lend  

it, own with it or give it away. When you have  money at a bank credit union or an insurance

company, it's in a lended position. Are they just a  benevolent institution paying you interest? No. What  

are they doing with your money? They're putting it  to work. So, banks disclosed, they pay 1%

every million they borrow from us when we put it  in a savings or checking account, every million  

they pay 1% annually, 10,000 bucks, what  are they doing? They're taking some of that and  

putting it into insurance companies without even  linking to an index and they're earning 5.  

They're earning 50,000 tax-free on every  million, they only had to pay 10,000. Would  

you hire an employee for 10 grand that made you  an extra 50 grand? That's a 500% return. Unemployment  

cost, would you buy a widget machine for 10,000  that made you an extra 50,000. That's a 500%

return on equipment cost. This is how money works.  And so what's safer than a bank or credit union?

How about putting your money where the banks  and credit unions put your money to increase  

the safety from triple B maybe to triple A by 6  notches higher in safety and they earn 5 times  

the rate of return? Why not bypass the middleman,  the bank or the credit union for long-term goals?

Any money that's earmarked for 6 months or  longer down the road, why would you put it in the  

bank or the credit union when you can increase  the safety and the rate of return dramatically,

bypass the middleman, put it into the insurance  institution and here's how you do it with what  

I call the laser fund. Wow. If this is intriguing  you, I've just scratched the surface, the tip of

the iceberg. So, I'm passionate about educating  people on how money works. I like to keep my money  

liquid so I can get to it when I need it, safe.  Do you know money in a bank or credit union, if  

things got really bad they could stall you up to  6 months before they give you your money out of  

your checking or savings account? Did you know  that? Money inside of a laser fund, I can access  

much easier. I call it the last domino to fall  because if things got really bad in this country,

you would have so much forewarning to be  able to get your money out of the insurance  

company because this is where banks have money for  liquidity and safety. You could access your money  

but let's say things were really really bad  and you got your money. Where would you put it?

I mean, if things were that bad, the American dollar  would be worthless. And so, I like to put my money  

in the institution or the repository that would  be the last domino to fall and if that crumbles,

the American dollar would be worthless. You better  be able to grow carrots in your backyard at that  

point because gold and silver is not the answer.  When things are that bad? You can't eat the gold or  

silver. You'll be exchanging gold for just food and  so you want to make sure that you can have access  

to your money if things get that bad but you can  convert it to the things that will sustain you.

It's called the laser fund, liquid assets, safely  earning returns. This is a 300-page book. 200 pages  

are charts and graphs and explanations if  you're a left brain thinker. If you're a  

right brain thinker, you flip it over and there's  another 100 pages with 62 actual client stories  

of how people have used the laser fund to  accumulate their money tax-free in the safety  

of a multi-billion dollar insurance company  or several companies and earn rates of return  

averaging 6, 8, 10% tax-free with  full liquidity safety and earning those rates  

of return so that every million can generate 60,  80, 100,000 a year of tax-free cashflow. That's  

where I would consider putting my serious cash for  the greatest amount of safety. Go to laserfund.com,

contribute just a nominal amount  towards the shipping and handling,

click on the link below and I'll pay for the book  and fire out a copy to you. There's options there  

if you like to listen and learn and watch  and learn, here's to your brighter future.