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Why Does A Max-Funded IUL Pass The Safety Test For Money Better Than Banks And Credit Unions - YouTube
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I'm going to address why does a聽
max funded IUL pass the safety test
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for money better than banks and credit unions.
Get ready, by the end of this episode, you will
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understand why legal reserve insurance聽
companies are the backbone of America.
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So, I'm Doug Andrew I've been a financial聽
strategist for north of 48 years helping people聽聽
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optimize their financial assets and also other聽
assets on the family balance sheet. We talk about
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those on this channel. These are the intellectual聽
and foundational assets that all of us possess.
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But this episode is talking about聽聽
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money and so when people have聽
come to me for nearly five decades
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they want to be able to set aside their money聽
in a safe environment. Where hopefully they聽聽
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will not lose principle and they want it in聽
safe institutions. When we talk about safety聽聽
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there's actually two different definitions. One聽
is the safety of the institution. A lot of people
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think that money in a bank or a credit union is聽
one of the safest places to deposit money. Why?聽
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Because it has that FDIC insurance聽
on it. Did you notice? It's insurance
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that makes it safe but who's the insurance a聽
company operated by at a bank? Federal deposit
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insurance the government. People聽
sort of go, "Well, the government聽聽
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they can always sort of print more money聽
or taxes", yep and so people get sort of聽
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lured聽into a sense of I think聽
false security thinking,
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"Oh, the government is protecting this so the聽
safest place is to have my money in a bank". Well,
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let's talk about the second definition of聽
safety and that means safety of principle聽聽
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or safety of keeping up with the purchasing聽
power of the dollar because of inflation.
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Because when the government prints and prints聽
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more聽money that causes聽
inflation and you didn't really
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have safety of your principal or if your money is聽
invested in the market and the market goes through聽聽
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its gyrations, you can lose your principle. A聽
lot of people don't think about this. So, I like
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to use both definitions. I want聽
the safety of the institution.聽聽
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I want to put my money where the banks
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put their money for liquidity and safety. But I聽
also want to have safety of principle which means
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I don't want to lose money that I invest into聽
the investment or the instrument financially.
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I want to protect my principle but any year聽
that I make money I want that money that profit聽聽
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to become newly protected principal.
Meaning, I don't want to ever lose in future years聽聽
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money I've made in previous years. Most financial聽
advisors don't know how to do that. They just say,
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"Oh, just hang on. You know, when it goes down聽
it'll come back up again. Hang on the market
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always comes back", and so what happened in聽
2001, 2002, 2003, many Americans lost 40%
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on their retirement nest eggs. They maybe聽
had a million bucks in the year 2000 it聽聽
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was only worth 600,000 by the end of 2003.
It took four years to make back what they lost.
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They were just back to break even again. Now,
people聽using my favorite vehicle they had safety聽聽
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of principle it's what I call a Laser Fund liquid聽
asset safely earning return spells and acronym
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laser and so they did not lose their million. They聽
may not have made very much in 2001 to 2003 but
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they didn't lose. They were protected from loss
and聽then in 2000, 4, 5, 6, 7, they were able
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to make money at the end of 2007, their million聽
was worth as much as 2 million when most people聽聽
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were barely back to break even. Because they did聽
not lose when the market went down they had safety聽聽
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principle and then they made money and so they聽
had 2 million then what happened in 2008? The
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market dropped 40% again. People's million-dollar聽
nest egg that they finally got back to break even聽聽
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went down to 600,000 again for the second time聽
in a decade. The people using my favorite vehicle聽聽
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The Laser Fund their 2 million just stayed there聽
at 2 million in 2008 they didn't lose what they聽聽
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had made the previous four years and in 2009 they聽
started making money again and instead of waiting聽聽
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four years to get back to break even which most聽
Americans, it took till 2012 for their 600,000 to聽聽
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come back to a million again to break even. That's聽
why we call it the great recession or or the lost聽聽
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decade it was actually 12 years. Many people ended聽
up with tripling their money in that time period聽聽
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because they did not lose when the market went聽
down. They may not have made very much but they聽聽
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didn't lose and they started making money again.聽
This is called indexing. This is how you have聽聽
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safety of principle. So, let's talk about what聽
this means historically. But before I go there,
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if this is intriguing you post a comment, click聽
like, share it with somebody who you think would聽聽
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benefit from this video. But I would love聽
for you to subscribe, it's easy. Click on聽聽
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subscribe it's free and click the little bell聽
when you do so. You'll be notified every time聽聽
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I post a new episode which I do almost on聽
a daily basis. But stay with me to the end,聽聽
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I want to gift you a copy of my 300 page book The聽
Laser Fund absolutely free. I'll pay for the book.聽聽
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So, folks, during the great depression聽
we had banks close, real estate dropped聽聽
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80%and there were 40% of banks that never聽
reopened again. There was not one single legal聽聽
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reserve insurance company that went under in the聽
great depression. Money was safe in those. Maybe聽
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you聽only earned two and a聽
half or three percent but
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when things go really bad people get more聽
concerned about the return of their money instead
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of the return on their money. In 2008 we had 400聽
banks go under in that you know mortgage meltdown.
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900 more were on the brink of going under it聽
was called the watch list and how many legal聽聽
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reserve insurance companies went under in 2008?
Zero. In fact, the federal government asked the
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five major banks to disclose where they have their聽
tier-one assets for liquidity and safety and the聽聽
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bank said, "Well, in insurance companies", because聽
insurance companies are usually rated six notches聽聽
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higher in safety than most banks are rated.聽
A lot of banks are only rated maybe triple聽聽
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B by standard poorest. A lot of this insurance聽
companies are rated double a or aaa you may not聽聽
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know but that's like six notches higher in safety.
Do you know what the banks are doing? In 2008 they
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were going well. Yeah, we are taking the聽
public's money and people deposit money in a bank聽聽
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and the banks were paying one percent let's聽
say not even that high and they're turning聽聽
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around and increasing the safety by about five聽
or six notches higher in safety by putting some聽聽
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of your money into insurance companies and they聽
are increasing the rate of return because they're聽聽
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earning more like five percent. Five percent is聽
how much more than one percent don't say four.
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They're paying you ten thousand dollars of聽
interest on a million dollars in their bank聽聽
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and they're turning around making fifty聽
thousand. Fifty thousand is five hundred聽聽
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percent or five times ten thousand. This is how聽
money works but they're increasing the safety.
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You can bypass the middleman and put your聽
money straight into the insurance company聽聽
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and use what banks do. They have bank-owned聽
life insurance that's called BOLI聽聽
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bank-owned life insurance that's an acronym. Who聽
do they own it on? It doesn't matter stockholders聽聽
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board of director members or whatever. It's the聽聽
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owner of the insurance policy that gets聽
all the tax-free accumulation and so forth.聽聽
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Remember that, there's other episodes on this聽
channel that'll help you understand this concept.
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The point is this, legal reserve聽
insurance companies are the聽聽
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backbone of America and the backbone of the world聽聽
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and that's where many of these other聽
financial institutions put their money.
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That's where many governments go to for help聽
when they get into trouble. When banks and聽聽
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credit unions put 30 to 40 percent of their tier聽
one assets into insurance companies for liquidity聽聽
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and to increase the safety we聽
ought to be thinking, "Hmm...聽聽
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why don't I take advantage of that? Why don't
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I bypass the middle man?", well, you can and so聽
the point is most insurance companies are rated聽聽
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five six notches higher in safety than most banks.
So, why would you feel better about having your聽聽
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money in a bank down the street because it has聽
a drive up window and you think that's liquidity聽聽
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when really that's just convenience. Why would聽
you have your money in a bank or credit union聽聽
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thinking that's the safest way because if FDIC.
What does FDIC mean? Federal Deposit Insurance.聽聽
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Why rely on the government's insurance company聽
that sometimes has almost been on the brink of聽聽
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going broke when they bailed out you know聽
the savings and loans industry or in 2008聽聽
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because you want to go straight to where they put聽
their money and so that's what I'm talking about.聽聽
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Serious cash whether it's emergency funds,聽
retirement planning, working capital for business.聽聽
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I put all of that into IUL indexed universal life.聽
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I maximum fund it. I'm聽
earning great rates of return
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netting me 8, 9, 10, percent tax-free. But it's聽
liquid and it's safe. As far as I'm concerned
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it's the last domino that would fall if we had聽
a total financial collapse in America and you聽聽
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would have so much warning from all of these other聽
institutions going under that you could grab your聽聽
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money but let me ask you something. Where would
you聽put it? If it's that bad the American dollar聽聽
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would be worthless. You better be able聽
to grow carrots in your backyard even聽聽
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owning gold and silver won't help you in that聽
situation because you can't eat the gold and聽聽
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silver. If this is making sense I want you to聽
learn and read why I feel like The Laser Fund聽聽
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is the best place to put money serious cash聽
for liquidity safety predictable rates of聽聽
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return tax-free and it would be the last domino聽
to fall if we had a total collapse of all the聽聽
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financial institutions in America. Does that make聽
sense? If you want to learn more I would recommend聽
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you聽read this book it's been flying off of our聽
warehouse shelves it's called The Laser Fund and聽聽
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this will teach you how to diversify and create聽
the foundation for a tax-free retirement. But聽
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how聽to pass the liquidity聽
safety rate of return test
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with flying colors and have聽
it be tax-free to boot.聽聽
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That's what these four pillars are. These are
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the key elements of a prudent investment.聽
As far as I'm concerned being a financial聽聽
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strategist nothing comes close聽
to passing the safety test better聽聽
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than a max funded indexed insurance contract聽
where you're safe from market loss. You take聽聽
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advantage when the market goes up you don't聽
lose when the market goes down because your聽聽
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money is not at risk in the market.聽
You have safety of the institution.
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You have safety of your principal. this is crucial聽
for you so that you will not outlive your money.
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So, go to laserfund.com click on聽
the link below. You contribute a聽聽
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nominal amount towards the shipping and handling聽聽
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have some skin in the game and I'll cover聽
the rest of that and I'll pay for the book.
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I'll fire out a copy to you this is 300 pages.聽
It's actually divided up into two books. This one聽聽
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is for the left brain learner all the charts聽
and graphs and explanations. If you learn聽聽
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more by stories you flip it over聽
and read this one and this has聽聽
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12 chapters with all kinds of stories and聽
examples of how savvy people use the laser聽聽
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fund for all kinds of financial goals. It's聽
the dream solution for an emergency fund,聽聽
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retirement planning, working capital for聽
your business, real estate management,聽聽
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on and on and on. So, claim your free copy now聽
this is the beginning of your better safer future.
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