Episode 7: Combat Inflation With These Wealth Protection Strategies

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this is 93 million with Doug Andrew welcome to 93 million with Doug Andrew where we talk about how to optimize your assets minimize taxes and empower the three dimensions of your authentic wealth my name is Greg dukit your host facilitator ilul specialist and lover of filled donuts and in today's show we're talking about inflation Market volatility or predictability income Arbitrage and Airplane Fuel and we're joined by The Godfather of properly structured ilul

New York Times bestselling author and a man who once R ran out of fuel in a Cessna airplane Doug Andrew what good to have you Doug it's great to be here wait till you hear that that story we'll find more about that later all right and to tell and co-author of the laser fund ilul Mastermind and a man who's better looking than his brother wait a minute who put that in there welcome absolutely I'm here and ready and I am better I know I don't know who types these up all right and also

co-author of the laser fund the I Einstein and a man who loves to stir the pot Aaron Andrew welcome Ain thank you welcome happy to be here all right and our featured host for today a treasure Trove of wisdom one of the greatest iul Specialists to ever live and a maning this and a man who's never afraid to speak what's on his mind Scott Reynold AK that's enough out of you all right gentlemen we're excited for today let's Jump Right In starting with our first ex

segment uh how Doge this work Doge of course is the Department of government efficiency love it and the department of government efficiency has been very busy uh garnering much ACC claim and criticism right depending on what side you're on but regardless uh they are considering sending out Doge stimulus checks if you want to call it that which are basically a portion of the savings that they're setting out to achieve over the next few years or so so there's a

big argument over if these checks would actually cause inflation as you guys know we're kind of at still around 3% inflation right now and so would this make this worth worse is this something we want to be uh concerned about so on one hand axios uh wrote an article where they quote a judge Glock that's a real name by the way I don't know if it's a judge or man that name would have got banned last year judge Glock says it would increase the deficit it would

increase immediate consumer spending and that would have inflationary consequences but an AP news article quotes James Fishback the more Doge saves the less the government spends and the lower inflation is it's that simple Doug we're going to start with you as always first of all do you think returning some of Doge savings to tax payers is a good idea well first of all I don't

understand that judge's uh commentary that it would um increase the deficit if it's excess money and the government keeps it and spends it that increases the deficit okay right if the government takes that money which they're going to take the bulk of from what I understand and pay down the national debt that's good right now the portion what whatever it is 20% or whatever yeah I think got 20 right if it goes out to the consumer I would recommend the consumer reduce

their debt now that would be the wisest way is to reduce their personal debt now if they don't if they go out and spend uh it's not like when Biden sent out a bunch of money during covid because that actually increased the the deficit I mean he was he was using borrowed money okay right here um if they went out and spent it would stimulate the economy but it's money that the government has already taken so giving it back I think is a good gesture I would recommend that they uh use it to

reduce their own debt though rather than consume see W wise words emeron what are

your thoughts on this well it's our money anyway isn't it not I mean this is our money this is the taxpayer money it's just rur D it's just returning taxer money right money yes well and it is that simple again if we're reducing the amount of money the spending that's what's going out there if we're reducing that and we're giving a portion of that back it's not going to cause inflation uh I mean I think it's a wise idea idea because you do want to stimulate a little bit of the market

because you're actually going to Des stimulate a little bit by pulling all that spending out right so you're going to pull a bunch of money out of the system and it's a lot of false money I mean I've been talking about this for a long time that we've got a lot of false money in the system in the market and this is really really healthy especially long term to get this false money out of uh out of the system and if we can give a piece of that back to the American

people so that they can you know better their own situation whether that's paying off their own debt or whether that's you know doing you know putting it into themselves that is a that I see that nothing but uh but positive okay that's great Aaron your thoughts yeah I I think I like I'm on the same line that I think it's going to you know be great if they could you know get that money back if they can get that savings yeah if they can first get it because of course right now determined they're

really I mean they're cutting but it's so far it's been like small amounts overall speaking right hasn't been as big as they want to get right but um what's interesting too is like just think of like the Tariff idea right now is if tariffs could of course cause inflation that's a big worry we'll see if it's going to be more of a bargaining tool or if that's going to be um um also be going into effect to and that might cause inflation I think that'd be more of a worry of inflation than this I

think this is going to be a great idea to get like if they do take 20% of that and give it back to the uh the people that it was being spent elsewhere kind of like a refund yeah I think it's a good idea do you do you think it's kind of like what Doug said too it's good to get Americans back into the mindset of cutting spending cuz right now the the government we're we're $36 trillion in debt right and and it's maybe creating a culture of of cutting spending right in

the government that we've never had before you got to get out of this consumption mentality get a little bit more into preser preservation so maybe that's a different I think people are realizing where money is being spent too yeah yeah I've I've owned a uh card game and board game store the last five years and during that time Co checks paid for a lot of trading cards like Pokemon Magic baseball cards and that industry also got overprinted because all this

money flooded into the market right now a lot of those cards today just aren't worth as much because people spent it rather than saving it to you know pay for their food or pay bills and things like that right right right okay well Doug back to you just to follow up on this kind of topic what you know Americans kind of grapple with inflation

they know it affects the price of eggs right but how do you how do you identify inflation from a savings standpoint or a rate of return or a retirement standpoint why why does inflation matter to to Americans and what what does it really mean to have inflation in terms of savings and investment accounts and things like that yeah well of course inflation is is the cost of living increase okay and uh what you have to understand especially if you're managing your money too many Americans are rowing

Upstream so to speak uh in a bank or Credit Union uh at 3 or four miles an hour at best at 3 or 4% interest and the current of inflation is coming down at 5 6 7 8 n okay you're going backwards right you have to have a rate of you're rowing as hard as you can you have to have a rate of return that's equal to or greater than the inflation rate or you're going nowhere in fact you're probably going backwards so that's the critical thing to remember and so you have to have a strategy which I think

we'll get into to outpace inflation or actually have inflation work for you

instead of against you I don't like inflation any more than anybody but it doesn't hurt me it actually helps me with our strategies yeah yeah Erin any thoughts on this yeah I mean with with inflation it's just um I think a lot of people worry about it but they don't understand like how much it can affect their retirement because a lot of people we when we look at retirement income it's just hard to understand you know going out 10 20 years and what inflation is now and what it could be down the

road how much it's affecting their true retirement income right so when they really look at it it's like we need to plan for that we need to look at it and say okay yeah you need if you're if you're younger in Saving you need to save more as time goes on and your income goes up with inflation yeah because savings the more uh beneficial thing at that point than just rate of return right yeah just saving and then you know so yeah being very conscious of you know what inflation is doing how

it's affecting your retirement how it's going to affect it you know long term I think people just you need to really understand it for sure yeah emeron thoughts yeah like like kind of feeding off of what Aaron said like even Even in our our book original book millionaire by 30 that we had co-authored with my dad you know we talked about you know saving we talked about saving a percentage of your income rather than a dollar amount so many people like yeah I'm saving $200 a month or $500 a month

that's great the idea behind there where we T talk about getting to a fluency or getting to be where your money is working more than you are it's saving 10 to 20% of your income so like he says if inflation's going up your income goes up make sure your your your savings is equivalently going up as well so it's always 10 to 20% of my money cuz otherwise inflation is the great eroder of wealth and aeny right I mean erods away You're wealth and influency if you do not have a strategy if you're

just blindly going about you will end up not having any money or wealth and you'll wonder what happened yeah yeah it's it's like a thief right yeah like I I lived in Brazil in the early 90s yeah you went through a period of of hyperinflation in it was bad and you there was no incentive to save money there was only incentive to use it because if I bought a thing of crackers today for a dollar tomorrow they were $2 the next day they were $7 the next so you had zero incentive to save yeah so

and that's I think unfortunately what inflation a lot of times will do so sa save up uh boxes of crackers and yeah bu crackers all right well let's get to our next segment but first just a reminder that if you enjoy this content and you want to see more of it please like And subscribe and if you'd like to ask us a

question please comment on on this video and we may use your question in one of our next shows how would that be that' be fun all right up next uh inflation mination what to do during times of high inflation so gentlemen we talked about inflation kind of the effects on us but if you're if you're out there kind of saving we talked we did touch on this a little bit um if you're out there and trying to save what do we do about it in a chart from US inflation calculator.com

this is where uh this is where Aaron goes for some light reading sometimes uh shows the last 10 years of inflation rates and if we look at the first five years versus the last more recent five years look at the difference you guys and of course the delineator being covid right at 2020 but look at that year five from 1.4 jumps to 7% inflation in year six that's a wild jump just like that so emeron I want to go to you on this first when inflation is like this or it's a

concern you know what do we what do we actually do during periods of inflation to combat against inflation yeah I mean obviously first and foremost be aware right just don't just don't put your head down in the sand and go about blindly but be aware because when inflation goes up interest rates go up right it follows each other and so as interest rates go up I'm able to actually put my money away and earn higher returns and so if I can earn those higher returns I can make sure I

stay ahead of it because the only way to really stay ahead of inflation is 93 million is it's the miracle of compound interest compound growth that you're giving away is the answer you gave it away you just gave it away that was the punchline we're done okay great Erin what are your thoughts on this well to feed off of that with indexing with you know our favorite product our favorite strategy is you know I and with indexing you have the you know the perfect kind of uh

vehicles to be able to like what's what happened in the last few years with with these rates that have gone up quite a bit is we've had caps and particip ation rates and Returns on iuls go up a lot higher the last few years so the Last 5

Years returns have been very good besides 2022 of course about a year year and a half there the market went down yeah but guess what happened that year what did we get we got Zero's the hero right yeah that's right so we got zero the hero and then with indexing on the other years we've gotten great returns and some of them uncapped some of them capped but with a guarantee of zero and then of course which helps with combat inflation is the taxfree component of

course yeah that's great Scotty what are your thoughts on this yeah the funny thing is with inflation or deflation is interest rates are relative right so 5 years ago everyone was complaining about

oh my savings account at my bank was. 2% but everybody love 3% mortgage rates yes well today everybody loves 3% mortgage or uh Bank rates then they're complaining about at 6 so interest rates are relative if you understand that then you want to put your money in places where it can also adjust with inflation well and it's sneaky too cuz like they were saying if you have a 1% like let's say you're earning 1% in a bank you're going oh I'm earning 1% no you're

actually losing 2% yeah right because if inflation is 3% then you're actually losing two even though you think you're earning one yep yep right uh Doug why don't you wrap us up on this uh subject yeah a couple of points you know I've been around the block for a long time and and when I started in 1970 1974 um The Carter you know Jimmy Carter came in and we hit double digit inflation okay 1980 right inflation was I remember when it hit 10% and on my universal life pre-index universal life

I was credited 15 and a half okay wow because it was amazing because interest rates are Rel that's crazy fixed return that's like a fixed return but you know mortgages on homes were up there and everything else CDs that Banks were paying over 10 right now what happened is the federal government decided they couldn't afford to pay like Social Security recipients uh the true cost of living in increase so they changed the way they actually calculated and reported this the Consumer Price

Index CPI right so basically and they did it twice so instead of comparing the same basket of goods and services Apples to Apples year to year they could actually get away with comparing the price of an 8 oz fet Minon steak last year to 8 ounces of hamburger this year and get away with it so when they report inflation at seven I just sort of triple it no no it was really 21 and people saw it at the gas pump they saw the Hamburger Stand yeah they St with you as

cars and eggs went to McDonald's and it was $12 for a value meal what happened and yet the government value 100% inflation I know but the government thumped themselves on the chest we gave you 9% increase on your Social Security well thank you very much the real inflation rate was 27% your fault too now here here's just a simple you know you've heard the rule of 72 most people think the rule of 72 is to come is to calculate how fast your money doubles right you earn 8% divided

in 72 your money doubles in 9 years 7.2% doubles in 10 years 10% doubles in 72 7.2 years you use it to calculate inflation yeah that's right that's right see so if if if I could get by let's say after tax I pull out 6,000 out of an IR 41k and a 33% bracket I'm netting 4,000 if I think I can get by on 4,000 a day at 5% inflation 4,000 a day man ex me I I want I want my Dy 4,000 I want Doug budget I I was just seeing you're listening okay you know if I could get

buying 4,000 a month today okay how much would I need in 15 years to buy the same gallons of gas and loaves of bread that I can buy for 4,000 a day at at 5% inflation well 5 into 72 the cost of living doubles every 14.4 years I'll need eight grand in 30 years I'll need 16 Grand yeah well inflation's been 7 to 10 10 into 72 means the cost of living will double in 7.2 years yeah or how about 5% inflation we've actually I mean excuse me me uh we've had as high as 12

and 15% the cost of living will double in 5 years so that's what people need to realize uh if you can get Buy on 8,000 a month you're going to need 16,000 and then 32,000 in less than 15 years to buy the same gallons of gas and loaves of bread can we get some topics that Doug's not passionate about yeah he never has any strong feelings about anything okay if you're enjoying this content and you're wondering how to take advantage of these ideas how to take control of

your financial future and to get on the path to Lasting wealth at Laser Financial we help individuals and families like yours Implement proven strategies to grow and protect your

wealth strategies that don't rely on risky Market or high taxes one of our most powerful tools is the index universal life policy or iul it's not just insurance it's a tax-free retirement strategy a way to grow your money with compound interest that we were just talking about and a safety net against Market downturns imagine this during retirement you're grows when the market goes up but when it drops your principal stays protected from those market downturns and because I

strategies can be structured for tax-free income you get to keep uh more of what you've saved worked so hard to save sorry about that whether you're planning for retirement or looking to secure a financial Legacy for your family we can show you how iul can make all the difference go to laser financial.com or call 80155 409 to schedule a free consultation and see how these strategies can work for you that's laser financial.com or call 8155498715 TOS in the industry but let

me ask you this are you leveraging it to its full potential that's where I insiders comes in they've trained thousands of professionals like you to go beyond just selling policies they show you how to build thriving scalable businesses that set you apart from the competition and in the next few weeks they're hosting the iul challenge it's a free 3-day event designed specifically for financial professionals who want to master the Art and Science of iul you'll

learn proven strategies to Market design and sell properly structured policies that deliver incredible results for your clients and for your bottom line if you're ready to evalue uh to elevate your practice and scale your business visit iul challenge.com sl90 to save your seat spots are limited so don't wait that's I challenge.com 193 take your business to the next level okay on to our next SE segment it's time for some RNR oh I like the risk risk and return that

is how risk and return affect your heartburn huh how'd you like that okay sorry I apologize according to an article by Investopedia uh they said that potential return Rises with an increase in Risk huh well that's not really shocking to

most of us and uh people have under uh most people understand that intu ly you know all of that when uh when when risk goes up return can go up or vice versa right but as Americans we often want The Best of Both Worlds we want to have our cake and we want to eat it too Aaron As Americans can we have our cake with risk in return can we have our cake and eat it too well generally no you don't like cake though yeah uh this thing is I don't get Harbor anymore cuz I don't eat

uh anyways I don't GL I don't eat better than all of us okay we get it I got rid of my heartburn and no more happiness we won't go there today but not today yeah generally generally no but with indexing what's cool is you can have your cake and Eed too if you um you know kind of when you talk about indexing because with with ilul we got the indexing strategies where as I mentioned before we have our Florida of Zero the Hero so we have protection because a lot of times if you put your

money in the bank like we were talking about earlier you're going to earn you know one two three 4% maybe right now right right um or you go to like Bitcoin is going to be super volatile right okay so you got like the two ends no guarantees like Bitcoin see what bitcoin's done in the last six months or a year it's been like people like oh I should have gotten in and it's like should have gotten in and people like got in recently it's like then it's gone back down they're like ah it's like they

don't realize it's like it's so volatile right so volatile so don't you know you got to be careful whereas with indexing you actually get the best of both worlds is we can still get lots of up side without the risk we still have zeros to Hero yeah we're not going to make as much as sometimes other accounts because we have protection on the downside but with indexing we can get safely 6 to 10% sometimes 10 to 15% or more that's average so sometimes we get more but

tax-free so cool because awesome taxfree really helps out when it's you know not taxable maybe we should do a whole segment on on on cryptocurrency one of these days not today that day is not today emeron what's your favorite cake and can we have our cake and eat it too I'd say a cake donut merging my two favorit cake donut talk about heartburn chocolate or like a buttermilk bar yeah like a buttermilk C cake Donuts that's that's where the best cake is at very

good you know it's uh it's interesting because I think as a society most people I I really really feel like most people really truly do not understand risk and reward yeah and most people are not really willing you look at society as a whole and we're not really willing to risk everything I mean if it's going to if it's going to wipe you out I mean most people don't do that that's why most people don't become business owners right right it's tough to be a business

owner you're responsible for so much you take on that risk and that's where you even look at something where you need to have something that really fits you your strategy your personality which is I think why we love indexing so much right right because it takes it it takes that threat of just losing it all if you're willing to lose it all to gain it all sure but I mean there's no guarantee that you're gonna gain it all so but if you need to have some predictability

pulled back in that's why that's why I think indexing fits most you know I would say 90 plus percent of the personalities out their financial discipline and financial personalities out there that's what fits don't try to go outside of that because then you get too emotionally involved if you don't understand risk and reward you're going to jump in and you're going to make emotional decisions and you're always going to sell at the wrong time and you're always buying at the wrong time

yeah get out of that get out of that emotional roller coaster yeah and of course you guys were talking about in indexing inside an I not indexes IND very different right not index funds not index funds right okay Scotty thoughts on this AR you can ask me about my favorite cake what's your favorite cake all of them obviously no I just Mary pancake that's my favor just for the beautiful uh no I just think that uh with indexing it it's so nice the the fear goes away and it's

a lot of times we'll talk to people and then well my wife maybe's not as uh doesn't feels good about this she's worried about losing her money well they're putting their money into things that they are losing it anyways right the market will go down but with indexing you've got that protection so you really can have that cake and eat it too and the glass of milk and maybe some ice cream and other things well all right Doug uh you want to wrap us up on uh on this segment and what are your

thoughts on on indexing or anything you want to share yeah indexing creates uh predictability okay I love predictability uh Dr Edwards Deming who is the total quality management engineer that transformed Japan to the Quality they put out today with Automobiles and electronics compared to when I was a kid anything made in Japan was junk or cheap okay so he said management of anything in life including your money is predictability okay so this is the way I like to explain it um I want the uh the

viewers right now to give me your full attention you can use a cheat sheet if you want get out a piece of paper get out a piece of paper I want to see how good you are with simple math are you ready here we go I want you to pick a whole number between one and 10 any whole number between one and 10 11 okay not out loud oh sorry so take that number between one and 10 okay you got it okay now double it now add eight to that result this is testing my limits now divide that result in

half now subtract the original number you started out with from that last number okay yeah you should all have a final number in your head if not rewind and watch this again okay back it up 20 seconds take the final number you arrived at don't tell me take the final number you arrived at and pick the corresponding letter of the alphabet that that number represents so if your last number ended up being a that would be um um or one it would be a it be one one would would be a okay two would be B

three would be C if your last number was four that would be D the V would be e okay now take the letter of the alphabet that your final number represents and let's have you pick a country uh let's do Europe or the baltics okay baltics uh let's let's choose Europe or the Baltic a country that starts with that letter use the American name for that country not a foreign name so uh a might be Austria B Belgium C Czech Republic D Denmark e England Estonia F France G Germany H

Hungary I Ireland or Italy okay if you got a country yeah take your country that you arrived at and take the last letter in the name of your country and pick an a zoo animal that starts with that letter wow an animal that's not indigenous to the United States but a zoo animal starts with that letter okay so you got a country and a zoo animal take the last letter in the name of that zoo animal and pick a com and fruit that starts with that letter okay I know what

80% of you came up with I know what 80% of you all right everybody ready here we go Denmark kangaroo orange okay Denmark kangaroo orange okay how did you do that if you came up with Denmark koala Apple uh Denmark kangaroo Plum no no no you messed up what I just did is I just created predictability okay right so if you're if you're not final number with that math equation wasn't for you need to brush up on your math okay uh so I I had you arrive at the number I wanted

you to and there's only one country that starts with d uh I told you not to use the the foreign name deuts land okay sneaky I would have chosen deuts yeah and uh maybe you did Denmark um uh kangaroo uh uh no Denmark koala Apple oh yeah but that's only about 15% you're not going to get 100% what I'm talking about is you're not going to hit it out of the ballpark every year with indexing right but 80 to 90% of the time you will coming back to full circle you will

outpace inflation because you actually linking your returns to the things that inflate you're not losing when the market goes down and you're making money when the market goes up safer than having your money actually in the market and cresmont actually proved that years ago and taxfree and tax free it's so so remember that from now on anytime you hear Doug say k Denmark kangaroo orange now you know exactly what he's referring he's talking about pred creating predictability which you can

get with indexing yeah with indexing and then anytime you hear anything good about what we talk about you can always add taxfree tax free or tax free all right well coming up Doug runs out of fuel in an airplane what but first earn income on my income how loan Arbitrage can compound your success loans inside life insurance what we've we've talked about this before we've touched on this really kind of a hot button topic when you talk about iul or life insurance policies and you talk

about loans it's really got a lot of

negatively charged um emotions that come with it anybody anytime someone hears the word loan or borrowing it just sets fear in you right you just don't like the sound of that and generally we hear that it's very very negative the idea of loans inside of like I or in these policies we talked about but these are not your typical loans they're they are built for income they're not do in payable in your lifetime and uh these loans are designed with potential Arbitrage in mind so with that in mind

Scott why why are ilul policy loans a huge positive not a negative yeah you get to put that money to work somewhere else as well as the money that you currently have in the policy so this is where a lot of our people that are involved with real estate love it because if they find a property they can take a loan out of their policy for let's say $100,000 buy that property fix it up flip it put that money back in but maybe it took a year to do that but they were still able to earn interest on the

policy loan amount and they put that money to work in the real estate as well I think you just blew a lot of people's minds they just went what what are you what are you talking it's hard to understand but it's really it's you're having your cake and eating it too yeah you're having your cake and eating I'll clarify yeah Doug Doug help us help us understand know anything about this topic go ahead Doug well you're actually borrowing from the insurance company okay you're going to the insurance

company hey I have a $100,000 or a million dollar of cash value the insurance company will loan you the equivalent of your interest if all you want to do is take interest or you can go in and borrow 90 93 94% and uh you're borrowing from the insurance company and your cash value is staying there as collateral earning interest so you're not you're not technically borrowing your money okay you're borrowing from the insurance company using your cash value as collateral that's how it's

compounding at a rate of return usually greater than what they're charging you on the loan but what's what's the benefit of a loan loan proceeds are tax-free if I borrow to buy a car or a house I don't have to pay tax that's not income it's taxfree and you can pay back a loan when you want whenever you want yeah I mean other things you take money out of another you don't have to pay back the loan right yeah you don't have to pay it back it just gets deducted when you die

it's got to be paid back yeah there you go yeah it gets take it gets paid off when you die because you're they're not going to let you borrow more than you have with them as Doug just mentioned your money's in there you borrow against it they're only going to let you borrow as much as you have in there okay the money in there is collateral you pass away it's paid off with the cash value and the death benefit but um yeah typically we're borrowing like around

five right now on these policies borrow at five while the money is still in there earning six 7 eight nine 10 sometimes 20 you know 30% just whatever indexing does right it could be zero it could be knocking you out of the park other years yeah it's awesome em Emer you got some examples you can share with us you bet um yeah and really this is really at the Key of what we've been talking talking about inflation and when you address this and implement this kind

of a strategy this is one of the best ways to combat inflation during retirement because it's like now you're in a spending mode and so when you get into that spending mode how do I how do I combat inflation so I'm going to go to the table here going to go to the coffee table screen yeah we're going to go to the coffee table screen okay and on the table here we're going to go and walk through how this works you know so when you access money out of a from a traditional account you know you're

simply just you you got like a million bucks in there if you want to grab 100 Grand you pull that 100 Grand now you only have 900,000 in there so you you're you're slowing it down cuz now you're only earning interest on 900,000 right that makes sense everybody kind of intuitively understands that right so you're earning interest on a smaller amount of money right now what we look at in accessing money out of an UL or laser fund it's different because we get to keep on earning this compound

interest right so what we mean like this is if in this example again if we got a million dollars in our accumulation value or cash value and it earns 10% I've got 1.1 million right I've got that 1.1 million in there and if if I want to take out 100,000 I'm going to take it out what via a policy loan right so we got that policy loan pulled over there I'm borrowing from the insurance company I'm I'm posting 100 grand out of my 1.1 as collateral where does that money go

your pocket yeah it goes right there you use a picture right there right it goes right in my pocket I can do whatever I want with it okay so now that it's in my pocket but what happens to what what's still going on with the with my 1.1 million well I still have a million dollars of cash value I still have access to a million of the 1.1 but I'm still earning interest on the full 1.1 ah and so if I earn that full balance is still in your policy the full balance

was still in the I didn't withdraw any money right you just have a debt against it you just have 100,000 debt exactly I did not withdraw any of my money therefore my money is still earning interest so if it earns yet another 10% this next year now I'm earning interest on all that it grows to 1, 210,000 and everybody's like what but what about the loan well sure the loan's growing at 4.5% so it's at 10 14,500 take your balance your account balance this is just simple math 1.2

milon 10,000 minus 104 500 okay you just simply subtract that out and you've got 1 mil $15,500 of cash value I've got now that $55,500 is just pure hedge against inflation right I've got that hedg it against inflation now I do this all the time for people and you've got you know if you started with a 55-year-old with a half a million dollars and what I wanted to see is how does this really work in a real life scenario if we actually simulated this with gains and losses

right right losses in the market where we get what zero is our hero hero does it really work you know here's the here's somebody is put putting away a half a million dollars by the time they get to age 71 they're retiring they got a a little bit of over a million dollars in their account they're going to take out about eight and a half% payout an 8 and a half% payout tax it's very good tax free tax that means 8 and a half% of balance so I'm taking out about just by

the way is more than double the 4% rule if you know about the 4 % R and tax free and tax free yeah keep going so we're

pulling out that 80 but you see right here if I pull very first year I pull out 85,000 I still earning interest on 1.2 million I've got access to 1.1 so although I have access to I'm still earning on 1.2 so your net still goes down right your net still is going your net is is less than your gross but it's actually still went up right if you actually say that it went from a million 76 to 1 million 124 because I earned that year greater than 8 and a half right and then you go out to age 90 all

the way to age 90 there you can see I'm now I'm earning interest on $4 million I've only got access to 1.3 of it but I'm still earning interest on 4 million that's amazing go to age 100 I'm earning interest on $8 million and because I'm earning that interest on there I'm still taking out $85,000 a year all along the way here I've been taking out 85 Grand a year and I've got $2.9 three million in my account net of the loan so I triple I tripled my account during retirement while I was

still taking out 85 8 and a half% of my account balance every single year would would you guys say this has got to be the most misunderstood aspect of these typ policies well a lot of financial guys don't even know oh yeah most Financial professionals havean if you're listening to this we have tons of YouTube videos on this you know rewatch this again but this is the most misunderstood it is this went over your head just rewind it uh a few minutes and watch it again yeah with traditional and

compare this to a traditional investment where now your actual amount that you're actually earning interest on is a fraction of what we're earning withdrawing the money and I'm not required to leave behind $3 million which means I could take out more money meaning I have a hedge against inflation yes so I mean the thing is with this Greg is like we have clients doing this live right now the clients you know for you know over 20 years doing this y you I have a client recently took out like a

million over a million dollars $1.8 million in his policy took out 1.2 million for a business venture did that for a while and then paid it off yeah and while he had the loan out he didn't pay loan interest it just added on to the loan balance right because it's a com it's it's a loan balance but also he's still having the compounded growth of his value in the policy like every his 1.8 million is still growing right but even if it earned zero if his loan balance of 1.2 um had 5% interest and

just grew a little bit not a big deal because other years you're earning like double or triple the loan well then not only mentioned but if he would have died in that scenario his wife would now be on the hook for the $1.2 million loan with the B with if it was through a business a normal loan but instead she's going to get a whatever's left over Blossom to the death benefit tax free and then we got clients not not just that those examples this example em show

we have clients right now taking out this kind of money less more one taking out 250,000 a year tax free tax free 250 Grand a year um not paying any taxes on it I love cake and eating it I just love cake all right Doug do you want to wrap us up on this segment here this is so incredible Savvy business owners get it I had business owner in 2017 he had a strip mall he was wanting to buy for 17 million he needed a million dollar for the earnest money he calls up and says Doug send me over that

form he meant the sheet of paper he puts his name and his policy number and it says do you want to withdraw a million out of your ilul no right do you want to borrow yes yes uh do you want a zero cost loan a zero wash loan where you borrow it maybe two and 2% and get credited to no right uh do you want an IND loan yes that year he borrowed a million at 5% that's 50,000 okay okay he took that million loan from the insurance company fixed up that property and flipped it

and made 3 million in the meantime his ilul got credited 25% it capped out at 25% he got credit at 250 Grand taxfree mhm minus the 50 he netted 20% or 200 Grand on his million while he was using his million to make three million wow I mean that people get they go what yeah I know that's how money works yeah that's you really can double dip the chip now now that weend learn that so just just in that Scott not in real life okay it's last time I'm inviting you to a party

all right if you're enjoying this content and are wondering how to take advantage of these ideas at Laser Financial we help individuals and families like yours Implement proven strategies to grow and protect your wealth go to laser financial.com or call 80155 49 to schedule a free consultation and see how these strategies can work for you don't wait take the ne take the first step toward a brighter more secure financial future today uh this content is also brought to you by iul insiders

if you're a financial professional tuning into the show and you're wondering how you can expand your business working with index universal life or iul join us for the I challenge it's a free 3-day event designed speciic specifically for financial professionals who want to master the Art and Science of I visit iul challenge.com 493 to save your seat spots are limited so don't wait that's iul challenge.com sl3 take your business to the next level Doug did what what happens when an

airplane runs out of fuel well I think I know what happens

Doug I've been te teing this story this is a true story right it is true uh I'm embarrassed to admit okay all right you're alive to admit though that's pretty yeah I mean you're sitting with us here so we're grateful for that so what happened yeah I had a business trip um and I actually uh owned a couple of airplanes a a piper four-seater and a and a little cesna 152 two-seater okay and I needed to go to Las Vegas and I had taken that flight many times in both

airplanes I knew in the Cessna that I could uh fly fly as a crow flies or as a plane flies straight uh over the VR stations and I could get there with a quarter of a tank of fuel left right so um I'm not instrument rated I can't land in fog and so I fly VFR that's called visual flight rules and so I get in this little Cessna 152 because the other plane was being used and uh I take off to Las Vegas but because the of the cloud cover I can't go over the mountains like I normally do I can't go

straight to Las Vegas at this angle okay so I go straight South to St George Utah and then and then in an l-shape head over to Las Vegas yeah well I'm not even thinking okay that's a longer route wait wait what did you just say I'm not thinking okay I just want to make sure we have that we have that recorded it's on record it's on record cuz I got so complacent because I've I've flown this many many times okay you've done this many times plus I'm uh I'm flying

against a headwind and so I was only really going about 90 8 knots okay and that's not very fast that's not so anyway I go down to uh St George and I start taking off and I get halfway to Vegas and for the first time first time in three hours I looked down at the fuel gauges they were in front of me the whole time the needles are buried in the red both tanks buried in the red not on empty in the red you imagine and I went ah and I had my what did you do again I had my little daughter with me

and I strapped her in and I said honey uh daddy may have to end this uh FL end this have to land this airplane in a field or on the freeway and hopefully we'll make it and um so I kept my elevation at 10,000 ft as long as I possibly could and I was looking at where well what where do I land so I don't hit telephone poles or power lines and all this kind of stuff and I'm praying harder than I've ever prayed okay wow so I get into Las Vegas and as I'm approaching there's an Air Force

Base there called Nellis Nellis Air Force Base so you got to let them know if you're going to fly through their airspace cuz that's a no no and so I called in to Nellis on their frequency and I said this is cesta 5155 Bravo uh requesting uh permission to fly through your airspace and this guy comes on and goes permission denied we're doing uh F-16 maneuvers you will skirt to the north immediately and I said I can't I don't have any I I may land on your air strip he

says you'll do that with your you'll be taking your own life in hand okay you do not land here and I said I I may be forced to but I am going to fly through your airspace he goes okay so he gets all the F-16 pilots on the same frequency and he's telling them uh things and uh he's telling me five five Bravo you've got two at 11:00 verify yeah okay now you got two at 1:00 verify and I'm seeing I felt like this little little little moth flying through the Hornets okay wow nerve-wracking and I

finally get in to where I I've got enough to hopefully land right so I put on the flaps and uh I'm I'm running on fumes I've got to be and I drop out of the sky yeah and I come down and I I get right on the edge of the runway and I try to taxi Off The Runway and I can't I'm out of fuel you run out of fuel so it's true you you did run out of fuel I ran out of fuel you on the ground and I hurried and I I hurried and got out and I sort of pushed it and got off the

Runway and I called the the the on the Unicom the the guy to come out with a fuel truck and he's acting like who are you we don't come out to you yeah you come to us you he comes out and you know I hold 13 gallons on each wing and he uh so that's a total of 26 he put in 28 gallons and he looked at me and he goes do you know how empty you were I said yeah I ran out yeah and he goes man you like to live on the edge don't you I said no I don't like to live on the edge

like that but I'll never forget that because I had the instruments in front of me for 3 hours and I never looked at them how many times do we do that we see these signals we have these signs and then we we we ignore them don't ignore the signs that you ought to be doing something maybe safer for your retirement or for your money the hard earned money that's why we like I UL that you want to make sure you're safe regardless of the stupidity sometimes like you were talking about if you if

you get so much risk that you take that risky shot and then you lose it all yeah yeah if you don't okay go ahead yeah go ahead go ahead say yeah if you don't look down at your gauges if you don't look down at your IL it's actually not the end of the world because it's zero is the hero that's right right so it's like yeah indexing notna lose that's Aon always bringing it back bring it back to indexing going apply everything to indexing so yeah if you don't look at

your gauges don't look at the ilul it's like worst case Zero's the hero great well now I'm worried about running out of gas going to buy some cake afterward done this is a great story right emeron what what's your analogy from this story

you got 10 10 seconds what's what do you take away from this story I mean you look at it the number one fear amongst retirees is running out of money yeah and it's because most of them just one they don't want to address it it's nerve-wracking it's money I don't understand it right you know what and if you're just going to live that way where you're ignoring in it the signs the signal this is the scary part where finally it comes to a head at some point it's going to smack you in the head

right and and and the sooner you do something about it you build a strategy you know what you're doing you take control of that financial future now you can uh now you can live with ease with comfort that was longer than 10 seconds but yeah that was Scotty wrap us up go ahead uh I'm just going to go buy some cake I'm hungry yeah I'm good all right sounds great okay okay well just a reminder that if you enjoy this content and you want to see more of it please

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inflation work for you instead of against you create predictability in your life and don't let your plans run out of fuel thanks and we will see you next time thanks everybody take care everybody see you where's my Donuts a [Music]