Trump Tax Cuts, Truth About Fiduciaries, And Busting IUL Myths

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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 Dquist, your host, facilitator, and lover of donuts. And in today's show, we're talking about how having 54 life insurance policies. what what really is a fiduciary and uh what the five biggest attacks of IL are and how many are true.

And we're joined by the OG of properly structured IL, New York Times bestselling author and the author of the laser fund and creator of the laser acronym, Doug Andrew. Yeah, good to be here again. Creator of all acronyms. Yeah, of many acronyms. the master of the maxf funded IL co-author of the laser fund and someone who loves programming Excel spreadsheets. Emer Andrew, you bet. You bet. Give me that

Excel. Absolutely. Also co-author of the laser fund, the IL Einstein, top IL specialist, and a man who goes hiking at 500 a.m. Aaron Andrew. I did this morning. Yep. That's crazy. All right. And our featured host for today, one of the top IL specialists at Laser Financial and the world, a gentleman and a scholar and a man with no shortage of opinions. How do you like, Scott Reynolds? That's true. Thanks for being here, Scott. Buckle up. Here's Here we go. Buckle up.

All right, gentlemen. We have lots to cover today. I'm really excited about our show today. First up, what will happen to taxes? According to a recent Reuters report, Congress hopes to enact the big beautiful tax bill by July 4th.

Okay. Uh, Treasury Secretary Scott Bessant told reporters, "The House is moving things along quickly and the Senate is in lock step. We think that they are in substantial agreement." The article goes on to mention that researchers believe the tax bill estimate would cost 4.6 trillion over a decade. In other words, saying that keeping the Trump tax cuts would cost 4.6 trillion over a decade. Now, this is

always a controversy. We talk about the idea of whether tax cuts help or hurt the economy and specifically, you know, the national debt. Doug, you talk about the difference between raising taxes versus raising the revenue to be taxed sometimes. What do you mean by that?

Yeah. Because generally speaking, you look at tax policy back decades and uh usually if there's a control with the executive branch andor one or two or both of the houses in Congress, uh the Republicans will pass tax laws that are designed to stimulate the economy, raise the revenue that's being taxed. And when you do that, you can actually lower

taxes to stimulate the economy. and the tax revenue ends up being as much or more than if they just raise taxes which sometimes uh is a deterrent to the economy. It slows down the economy. So based on this 4.6 uh trillion over 10 years you divide that by 10 and that's 460 billion a year. Right? Okay. Now I mentioned in another segment the IRS collects about six trillion in tax. Okay. And uh the GDP is about 30 trillion. So as a ratio it's about 20%. So the average growth in the GDP annually is

3.2%. But back in 2017, these Trump tax cuts, uh when Trump saw that, he actually lowered taxes. The 28 went down to 24%, the 25 went down to 22, the 39.6 went down to 37% an average of about 3%. And everybody panics that's going to cost us, right? Well, the actual growth in the GDP was way more than 3.2. It went up to 5.2 in 2018. Wow. So that generated more tax revenue by lowering taxes. So this 460 billion a year, oh, it's going to cost us in 10 years 4.6

trillion. First of all, uh, a lot of that I think is going to be made up with tariff revenue. But let's say tariffs went down to zero. The stimulating uh effect of that by jobs and industry and everything coming into America is going to raise the revenue dramatically. And the GDP would only have to uh grow 7.6% to make up for 460 billion in a year. That that it would only have to

grow by 7.6. Now, I think it's going to be a combination tariff revenue and the revenue that's being taxed, which will uh we won't we won't miss out. It's not going to cost us 4.6 trillion. Yeah. It's going to make us money because they don't really account for that the any growth in GDP that would be spurred by this, right? Usually when these experts are doing these, they look at it like this is what we're missing out on. It's going to cost us. And I'm like, look

what it makes you. It gets a little political, right? How much did it cost us? The last Okay. ever since 2017. Right. That's the problem is it gets so political. Yes. Depending on what side you're on, you're going to either agree or disagree no matter what. Right. I agree with my pocketbook. I I'll just say that. I don't care what side. My pocket. That's a good thought. Hey, um how how important is it, Emry? Let me ask you this. How important is it for Americans to keep those Trump tax cuts?

In other words, if if we don't keep them or if we do keep them, how how important it is it to the average person out there? You know, it's for some people it's going to be the difference between uh maintaining or growing the middle class or destroying the middle class. I mean, the funny thing is you look at this, the the drop in tax cuts is is really doing what? You're investing in who? You're investing in the American people. And the best investment you can

make is in yourself. And so by investing in the American people, do you believe the American people will be more productive, will be better, will have will will do more, will generate more income to be taxed? I mean, that that's what I believe. The best investment you can make is in the American people, right? And so if you don't want to invest in the American people, raise the taxes and take the money away from them. Otherwise, lower the taxes, give them more money, and they will do what with

it? They'll do more with it. They'll create more jobs. They'll create more opportunity. They'll even spend more. I mean, everything will everything will get to get better. So, again, if you want to invest in America, grow the middle class, then lower taxes. If you want to uh eliminate the middle class uh and not invest in American people, go ahead and raise taxes. I mean, it's really what it comes down to. It's

interesting. If you reverse engineer it, would you rather give $100 to the government or $100 to like a small business or yourself? Right? Exactly. Who's who's going to do Who's going to do Who's going to do better than been doing recently with all that money? I know. I know. Exactly. We can all agree. Yeah. We can all agree that they don't spend money very wisely. Correct. Yes. So, I mean on all sides of the political scale. Correct. Yes. I think that's pretty safe

to say. Yeah. So, that's the thing is why give them more? I mean, come on.

Exactly what Eron said is like if if people know taxes are going to stay down go down businesses already are planning on okay I can invest more money I can do this I can do that hire more people yeah or people that are consumers like oh I got more money to spend right okay so it's yeah just basic simple you know yeah Scott round us out with all of this I personally just want to thank Uncle Sam if he finds it so much in his heart to let me keep more of my money I will

be so greatful for that. So, you know, it's only by his pure mercy that we're going to be able to make sure that we can keep more of our money so that we can spend it. And, you know, like you guys said, this is going to get more jobs. This is going to get more people spending. This is going to get more people saving money as well for their retirement future. So, they're not dependent on government programs. All sorts of financial independence versus financial dependence. Wow. You can tell

what a novel idea. Partner with with Uncle Sam. I heard somebody say you can tell how much revenue or how much taxes that the government's been collecting by the number of cranes and buildings being built in Washington DC. That's a good one. Yeah. I If the Trump tax cuts of 2017 expire, if they don't do this, it will be one of the largest tax increases we've seen in a long time. Let's just take the the 24% tax bracket.

that moves from 24 back up to 28. Now, some people say, "Well, that's only 4%." Uh, no. Now, listen. If that married couple filing a joint tax return on every $1,000 of taxable income they were paying uh at 24% 240 bucks and now they pay 280, that's $40 more. $40 is what percent of the 240? It's 16.66% more money. Yeah, it's not 4% more. It's 16.66 more money. And and people are going to be shocked and that's going to cause things to implode and and maybe the recession and everything else. It's

that 666 that everybody should be. Okay. All right. That's where you catch them.

Yeah. Coming up uh later, five attacks on index universal life. And at least one of them is true. But first, just a reminder that if you're enjoying this content and you want to see more of it, please like and subscribe and ask us a question or comment. We may use it in one of our next shows. Well, why do you have 54 life insurance policies? Wow. According to a Yahoo Finance article by Ben Weiss, incoming SEC chair Paul Atkins and his wife have 54 life insurance policies. That's a lot of

policies. Yeah. Way to go, baby. I mean, just just let that soak in for just a little bit. Okay. The article says, "The decision to get these policies flumxes some experts." And according to James Carson from University of Georgia, it makes no sense for an individual to have that many universal life policies. It does. He just can't fathom it. Right. Scott, you're actually the one that kind of turned us onto this uh spotlighted this article for us. What uh what are

your thoughts? What does this what does an article like this mean or what does it show? Well, first of all, there's lots of things I love about it, but the fact that the incoming SECC chairman, what does SEC stand for? Securities and Exchange Commission, like investments, right? Investments, you know, the people that have fiduciaries, they're all under the umbrella of SEC. Yes. Uh this guy coming in has 50 plus uh insurance policies, right? Well, why would he have over 50 insurance

policies? He must know something that uh most people don't know. I think it's cuz he likes him. No, no, no. I heard very clearly it flumxed the experts. It's because the experts don't get it. And and I think that's one key that we pound over and over and over again. People don't understand what we do. Yeah. Dave Ramsey doesn't understand what we do. Lots of other people don't understand what we do. I wonder I wonder what Dave's response is to that. Right. I want to know what Dave's response is.

Yeah, that's a good question. Right. What does Dave think about this guy owning 54 insurance policies? very torn on how to respond to that. It's an early succeeded so well. Doug, you should contact Dave and ask him why. So, but the other thing that um I like about this is is that he gets it. I mean, it's obvious he gets it. 50 plus means I understand it and I love it and I'm going to keep doing it. I figured it out. I figured it out. He probably

didn't get those all at once, right? He probably got some like, well, this is this is pretty nice. I'm going to get some more. Yeah. And he does it for estate planning, taxfree benefits, liquidity, safety, rate of return. Oh, wait. Laser estate preservation. Income went up, you probably bought more and more. So, yeah, that's right. Erin, is there a legal This is a great question. Is there a legal limit to the number of policies someone can own or have? That's a I get this question all the time.

Don't we? We get this question a lot. Well, how many can I have? Can I just have one? He's like, no, you can have as many as you want. So, you can have as like 54. Yeah, you can have as many as you want. And it's not the number of policies, it's the total amount of life insurance that you can qualify for based upon your income, age, and net worth. So there's what we call financial underwriting guidelines. So yes, this is

life insurance. We got to justify the life insurance on somebody's life uh based upon those things we just mentioned. So we meet with somebody like he probably couldn't qualify for all. Now, we don't look at the 54 policies again. We look at the total amount of insurance that he has on him, right? Maybe in his beginning years, he couldn't qualify for that much, but his income went up and so forth, he could qualify for more life insurance, get

more policies. And that's what we see a lot of clients do is they fill one up because they have limits on how much you can put in a size. But yeah, that could have been all one policy as far as like right now, but he's had them throughout the year. So yeah, basically you can have as many as you want. It's the it's not the number of policies, it's the amount of total insurance you can qualify. Insurance capacity is what they call it right now. Yeah. So insurance

capacity. Um, Doug, why would someone like this hold that many universal life policies? And they are universal, by the way. That's what they say. We're going to talk about that in a second. And it's because of what they can do. But going back to this capacity, when you're younger, you could get maybe 30 times your income. Later on, when if you passed away at age 60, your beneficiaries, your kids are now hopefully independent. Uh, your those that you u leave behind would not need

income as long. So it starts to switch to a factor of your net worth. So this gentleman has his net worth has kept going up. So he keeps qualifying because you can have at least one times your net worth and death benefit is sort of a general rule of thumb. Okay. Now why do they look at Walt Disney, JC Penney, Ray

Croc, the the the beginner of McDonald's, right? Okay. They all used uh permanent life insurance for living benefits for the tax-free accumulation, tax-free access. In fact, they saved J C Penney and McDonald's. Okay? Uh because and Disneyland, we wouldn't have Disneyland if Walt Disney didn't have access to cash value out of a life insurance policy when he was struggling to get that going. And then later on with uh index universal life uh we have David Walker the controller general of

the general accountability office. He loves having money in indexed universal life. And who would know better than him? Okay. Now here is the issue. They know that they accumulate their money tax-free. And if they do it like we teach, they can get nice rates of return of 7 8 9 10% or some years greater. But see, they're in such high tax brackets, they would have to be earning 15 or 16% in a taxable or tax deferred investment to net 9 or 10. We only have to earn 11 to net 10 or nine to net 8

tax-free. And the insurance is the vehicle that makes it happen. But

there's also the legal advantages. these people because of this sue happy society when they learn that money inside of a maximum funded insurance contract goes to a court of law for somebody to sue you for that if they've got their ducks lined up in a row with a trust and uh it it the the judge cannot award access to cash value in that life insurance policy if you can show what most agents think is a negative that well under worst case scenarios if the market went down for infinity

and they charged you the highest amount. This policy would crash and burn. But you can show the judge that and say that would cause these uh unrelated beneficiaries to suffer. So this this money in this life insurance is off limits. There's a lot of protection in life insurance. Savvy people like this and and I think we all met a gentleman last year that has even 76 policies. Okay. Yeah. Why? Because it grows taxree. They can access access it

taxree. Great rate of return. But the legal advantages are are almost unsurpassed. Okay. So I want to read a little bit more of this article. It goes on. It said with Timothy Harris from Illinois State University saying that perhaps the policies are vehicles to reduce taxes that there perhaps that there are two types of policies term and whole and that each of Atkins policies are in the whole life category or a variation of it known as universal life. Emers on this? There's no variation. It

is the variation. It is the way to do it. Right. I mean, cuz he's looking at wanting universal usage of of his money. Yes. And that's what the universal life policy allows us. Doesn't pigeon you whole you into just one use. It's it's a universal usage of it which was created that that name the universal life, right? you know, and he sees it uh the the capability the capability of what I've got here where I get to take ownership and control of my own financial future. And I you know, I see

that with those 54 policies. I mean, he figures out how to succeed once, you know, and and uh you know, people are striving out there trying to create wealth. They're rolling up their shirt sleeves, going to work trying to create that, you know, and some people might make their first million. They make their first million, they're like, "Ah, sweet. I'm done." But then you got the real people out there. You know, my dad talks about the strivvers, drivers,

thrivvers. What's a thor? Well, the definition of a thor is somebody who once they figure out success, you repeat it process, right?

Don't don't just succeed why succeed once, why not succeed 54 times at least, right? Succeed 54 times, right? You mean just buy one piece of real estate and if that's really successful, don't buy anymore. Yeah. Yeah. Yeah. It was that was so good. I should only own one. I own one stock. It's been really good for me. I'm not buying any more. Otherwise, it might flumx the That's right. You don't want to flumx the college professors. Well, that's a funny thing, too. You got college professors,

Dave Ramsey, other people. They don't understand this. Yeah. And it's not that we're ripping on them. Well, kind of, but they don't understand what we're doing. And the reason we're chuckling, too, is like you guys didn't realize what they're he's using words. She doesn't understand. Yeah. Yeah. It's not a variation of whole life. It's totally different. It's its own deal. It's own It's its own deal. I've heard Susie and Dave call them indexed whole life policies. There's no such thing as an

index. That's right. There's no such thing. People do that all the time. Well, they're trying. They're trying. We got a whole life carrier right now trying. They're trying cuz they they want to mimic. They're like, "Oh, I want to try it." Okay. Well, that's another story for us. One last thing I want to say on this. All right. All right. Uh uh Congress, no. Chairman Atkins. Yes, call me for number 55. All right, that's a good point. Good, good plug, Scotty. All right, on to our

next segment. Fiduciary for financial feelings, or what I like to call, according to Gro AI, a fiduciary is obligated to act in the best interest of their client. But conflicts of interest can arise, including financial incentives and relationship bias. Weird. Google AI takes it a step further, adding, "The fiduciary's own interests might influence their decisions, even if unintentionally." Doug, I want to start with you on this

one. What is a fiduciary and should someone put their full trust in that title? Absolutely not. A fidiciary again is somebody who's supposed to be looking out for the client's best interest, your best interest, ahead of their own. Okay. Well, that would be like the pure definition, right? the the pure intent and uh I've always looked out for my client's best interest. But see what what happens is they they hold themselves out. Well, I'm a feebased fidiciary. We'll probably get into that.

Uh but they're supposed to look look out for their best interest. But I have taught advanced continuing education for years to like CPAs and tax attorneys. And I'll say, "How many of you consider yourself to be a a fidiciary?" And they all raise their hand proudly. Yeah. All right. And then I go, okay, how many of you have uh clients who are very successful? They are they are savers. They're saving 20 30% of their income and they've already accumulated several

million bucks. Yeah. Uh we have some clients like like Yeah. Well, when did you notice that those um clients because of what they're saving are likely not going to be in a lower tax bracket when they retire. And I and they go, "Yeah." And I go, "And how many of them are you continuing to tell, oh, keep deferring deferring to the future when taxes will likely be higher? Are you looking out for their

best interest?" Come on. You should have converted it converted that to at least a Wroth or better yet to an IL, which is a rich person's wroth. And they get the blood drains out of their face and they all of a sudden realize they're not looking out for their client's best interest. and they're saying, "Well, I don't want to have egg on my face now. I don't want to." Well, why don't you go? You better tell them before somebody

else does. It's like when Zig Ziggler used to say, uh, when somebody in the marriage class would say, "Well, when should I tell my my husband or my wife I love them?" And he would say, the obvious answer is before somebody else does. But that these fidiciaries, they they put themselves out there, but also their commissions add up over time. And maybe we'll address that in commission. That's a really good point. Maybe someone wants to touch on that. Scott, what are your

thoughts on this? First of all, let's let's also say there are good fiduciary people out there. We work with some, you know, we have to work with fiduciaries, but it's the ones that try to be all things to all people. You know, people try to sell or try to I mean, I can't tell you how many times I've talked to somebody who has like IRA money and they want to start putting it into an IL. So they talk to their fiduciary and then their fiduciary, well, well, I can do that.

Well, why didn't you do that first of all, but why didn't you do it before for me? Yeah, exactly. And and again, a fiduciary license is a license to lose people's money. It it honestly is you can't you cannot sell products that lose money unless you are a fiduciary. That's a good point. That's a fair point. Eron, thoughts on this? G, where do I start? Where do I start and end with this? I mean it's all over the place.

Fiduciaries I mean one of my first part parts I go to this is uh you know you look at it and yeah somebody's supposed to have your best interest yet look back and who is setting the rules for what's in your best interest is the fiduc did the fiduciary sit down with you and did they ask you hey what do you want to like what is in your best interest so I understand what's in your best interest so that I can then coach you

accordingly. I hardly I don't know of any fiduciary does that because they are they get are their rules from who? The government sets the rules. Yeah. So basically you're saying hey I trust the government to decide what's in my best interest. You know somebody who has 35 36 trillion in debt. I'm like yeah I'm going to trust what you've got in my best interest. You know and and not only that why do then you look at them and why do they like Doug mentioned why do

they not want you to pull them out? Why do they not want you to pull out? And why do fidiciaries love things like IAS and 401ks? Because they are charging a fee base, like a one or, you know, a money management fee on that. Yeah. They get to charge that on not just your money, but Uncle Sam's money. So why do they tell you not to do a a Roth or an IL? They're coming because they're going to they're going to reduce their own

income. Would anybody in their own right mind intentionally reduce their own income by 30 or 40%. Yeah. But that's what you're asking them to do to to watch out for your best interest. You're asking them, okay, sometimes it might mean you have to take a 30 40% pay cut. Now, be your own be your own fiduciary. You are your own best fiduciary. Y that's Yeah. Go ahead. Yeah. That's why we train our clients so well to understand these things. They understand

the IL better than most advisors. They really understand how they work, what the fees are, the purpose, how they're structured, the purpose, and everything.

Because I had a client that went to a fiduciary um well they came to me after he'd already set up a policy through one of the life insurance companies we used great company but the policy was done completely wrong with crazy high commissions and the client was told hey I'm a fiduciary I'm going to do what's in your best interest so don't worry about it. This is an amazing story to me. I mean I that title was supposed to put all of the confidence and ease that

it was done right. Yeah. And that title had nothing to do with whether or not it was done right. And I I looked at the policy. It was done completely in the best interest of the adviser with way too much commissions, way too much fees in the design. So this is where I and then I taught the client this is why let me show you versus the way we design them. So, it's all about, you know,

designing it properly, of course. And that's why I get frustrated with that fiduciary thing is, yeah, a lot of them don't know what they're doing. And it kind of implies if someone's not a fiduciary, then they that they can't or they won't have your best interest in mind. They won't do it, which is an interesting twist of what that is. Take accountability and responsibility for your own financial situation. Yeah. Yeah. And there's a hidden agenda. Okay. In 2012, the Consumer Finance Protection

Bureau was established by Obama. Richard Cardray was the first director and they wanted to they were waiting for the next big you know uh recession or mortgage uh uh well that was the mortgage meltdown in 2008. They wanted they were waiting for the next 2008. Now what they were going to do is they were telling everybody you need to

become a fidiciary. Yeah. because the next crash, the government was hoping to tap into this little uh $30 trillion uh rich plum yet to be taxed IAS or 401ks, and they wanted to tap into it sooner. Yeah. So their plan was, oh, all fidiciaries must allocate maybe 15, 20, 25% to US treasuries cuz we're going to protect you and you must diversify everybody's IAS or 401ks into US treasuries. And they were going to go grab five or six trillion of the 30 trillion. The

government was going to borrow. I don't believe it. Wasn't Wasn't that the my IRA? like they they introduced like the my thera my IRA account. They tried to kind of market that a little bit, but they were going to say fidiciaries must do that if you're a fidiciary. Yeah. I love how they call it the consumer finance protect. I mean, it wasn't there to protect consumers. It was there to protect the government. I love how they name it, but then it purpose is to do

something completely different. Yeah. The very group that creates this fiduciary license is the beneficiary of of what they what they want. Exactly. The government's the one that created the fiduciary rule. They're doing that for you. No, they're doing that for themselves, right? Yep. All right. Well, coming up, five attacks on index universal life. And at least one of them

is true. But first, if you're enjoying this content and are wondering how to take advantage of these ideas, Laser Financial helps individuals and families like yours implement proven strategies to grow and protect your wealth. One of the most powerful tools is the index universal life policy or IL. It's not

just insurance. It's a tax-free retirement strategy, a way to grow your money with compound interest and a safety net against market downturns. Imagine being protected from market losses while still participating when the market goes up and having tax-free income that allows you to keep more of what you've worked so hard to save. Go to laserfinanicial.com or call 8015049 to schedule a free consultation and see how these strategies can work for you. That's laserfinanicial.com or call

8015049. Don't wait. Take the first step toward a brighter, more secure financial future today. Chairman Atkins, that's my phone number right there. Does it say 277? Give us a call. We'll take good care of you. Okay. Are you a financial professional wondering how you can expand your business working with index universal life or IL? Are you leveraging IL to its full potential? That's where IL insiders comes in. In the next few weeks, they're hosting the IL challenge.

It's a free 3-day event designed specifically for financial professionals to help you build a thriving, scalable business that sets you apart from the competition. 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 elevate your practice and scale your business, visit iulchallenge.com/93 to save your seat. Spots are limited, so don't wait. That's

ilchallenge.com/93. Take your business to the next level. Okay. The five most common attacks on IL and one of them is true. Okay. We're going to we're going to do this roundroin style, gentlemen. Okay. A little bit different than our normal style, but all of you are free to kind of chime in, but let's start with attack number one. Life insurance is not an investment. Erin, let's start with you on this one. Attack number one, life

insurance is not an investment. Is a properly structured IL an investment? No. What? What? Next question. Number two. Yeah. No, it's not. I mean, again, this is not an investment. So, that attack is true. That attack is absolutely true. One, you don't want it to be an investment. Okay. Okay. We don't want it

to be investment. investments fall under under the category once again they fall under the category of uh the SEC and FINRA where you're looking at well like you said fiduciaries that can allow you to what maybe they have a license to lose your money right but uh again it it it's not an investment it is an asset class but we don't want it to be investment because we don't we want to be able to have access to the sections of the internal code section 101 72e and

7702 that allows us to establish the need that this is not earned passive or portfolio income And if I don't have earned passive or portfolio income, then I can allow myself to create a a taxfree vehicle, a tax-free asset that I can then access. I can manage it. I can own it. I can have ownership, take accountability, responsibility. And that's a Yeah. So, I don't I don't want it to classify as as an asset because then it it you're going to that's an

investment. Yeah. The fact that it's a life insurance policy is what gives it all these tax advantages. Correct. We want to keep it that way. Yeah. We don't want it to be an investment. We don't want it uh you know technically like a piece of real estate is not under the uh under the uh government is not considered an home but people refer to

it as an Sure. You can revert because it's an asset but but again life insurance just like yeah you just basically in the code investments are taxed sooner or later and they're usually subject to volatility. If that's an investment I don't want one of those. That's why I own life insurance. Yep. Yeah. And so does someone else. Chairman Atkins only chair soon to be 55. All right, attack number two. The costs and fees will destroy the policy. We covered this recently in the Dave Ramsey segment

we did. Here is a short video clip of us watching that segment. And so if you keep the stupid thing long enough, it will begin to be the point that the premium you're paying will not even cover the insurance cost. And so it starts to eat back into your savings just to keep the policy alive. Okay, this that was a quick poll clip from our other episode where we covered that. Aaron, let's go to you on this one. Uh attack number uh two uh the the cost and fees will cause the policy to

implode. All right, so this is just totally wrong if you design it correctly. So bottom line everybody is he's wrong when you design the policy correctly because he said when you pay your premiums eventually down the road it's not even enough to cover the cost. Right. Okay. It's like it's like our clients fill these policies up in 5 years they're not paying anything after that many of them. So like a client I just showed this morning he was asking

that. He's like they all talk about these things are going to crash and burn down the road. I'm like no. So we actually show money going in fees coming out. Everything's fully disclosed. Yeah. empower yourself on how these work. Yeah. Just just understand it. It's math. Money goes in, money comes out, interest comes in. Really simple and it's all laid out in the book, in the laser fund book, you know, go to laserfund.com, get a book, of course.

Let us know. We can get you a book. And then also, but these illustrations, it's all fully laid out. So, if you structure it right, maximum funding with the least amount of insurance, the policy gets cheaper as you get older. Okay? Not more expensive. It goes down. Now, the cost can go up when you get in your 80s, but not that bad. But you really look at the numbers especially as a percentage of your your your bundle of money, right?

Your account value. Yeah. And that's what I was showing this client had so much in there relative to that stay so low, right? And he had like millions of dollars in there and his cost was draining out small amounts. It's like no, this thing is great and it's not going to crash and burn. So he's just wrong. It's that's the traditional way to structure life insurance is the way Dave is talking about it that some other adviserss do. The way we structure is

100% different. Yeah. And let me and let me add we've covered this on other segments, right? You guys have actually shown statements, actual statements showing snapshots of of years that are later cuz his contention was especially in the later years of the policy, right? We have statements later years in the policy showing very small fees, actual proof. And we have a whole series dedicated to this. Uh what's the series policy? How does IL does IL work? Right.

Does work? Does IL work? It's a playlist we have just example after example after example. Okay. And and basically in a nutshell, the longer it goes, like in the 25th 30th year, retroactive, if your gross return average nine, you would be netting probably about eight, only about 1%. Retract back to day one, right? But in the 25th year, if you earn 9, you're probably netting 8.8 or 8.9 cuz the costs have gotten cheaper as you got older. That's what I just showed this client this morning. cost

was.1%. Not 1% but.1%. Yeah, you can talk about our last show. We just talked about internal rate of return on our last shows. All right. Attack number

three. Life insurance agents receive a huge commission for the policy. So, it's a scam. Doug, I want to go to you on this one. We hear this one often. What are your thoughts on only if you're a fiduciary, right? Only if you're a fiduciary fiduciary example. We touched on this a little bit, right? There's an there's a commission there, so it's a scam. What are your thoughts on that? Okay. Well, I usually like to use the metaphor of a a realtor. Okay. Let's say that you were hiring a

realtor. Find me a half a million dollar home. And uh realtor says, "Sure." And you say, "Well, what are your commissions?" And the realtor says, "Well, standard 6%." So, if I find you a half million dollar home, you're going to pay about 30,000. And most people are fine with that. But what if the realtor said, "Or I have a better deal. Just pay me 1% of the value of this house every year for the next 30 years. What would

you do? Even if it goes up in value, 1% on the 1% value as the house appreciates, just pay me 1% a year on the value of the house. Now, would you do that? That's a lot of 6%. Okay. So, this is what I'm saying. Would they say this has a high commission? If I have a client with $500,000, okay, let's say a 60-y old, and they're going to fund their IL, and let's say they they funded a hundred grand a year for five years, I might earn 6% of that. That might be six grand

a year times 5 years. I was compensated 30,000 just like a realtor. Okay? But it's over. I only get compensated on the money, the new money that went in. I don't make money on the interest they're earning. Now if they average 9.6% like I have uh since inception uh of universal life in 1980 and then index universal life if you rebalance and diversify your money doubles every 7 and

12 years. So a half a million doubles to a million and then in 15 years it's worth 2 million and then and then it's worth 4 million in 22 and a2 years and in 30 years 500 grand can grow to to 8 million tax-free. What if an asset manager, a fidiciary, charged 1% a year, and if they actually performed that well, which most don't, and they took a half a million and grew it to 8 million, it

wouldn't be worth 8 million. It'd only be worth 6 million after tax and 25%, but if they actually performed the same way, and they charged 1% every year, they would have charged $980,000 bucks, just under a million. And they have the audacity to point fingers. Oh, that universal life is so expensive. You know, you made so much money,000. And they made a commission on the government that is regulating them to manage that money. Yes. Right. Right. I mean, IL cost 3% of what they charged.

Yeah. For the same result. Yep. Okay. Great. Attack number four. Indexing doesn't really work. The insurance companies can't really offer stock market upside with guaranteed floors. Scott, how do you uh respond to this attack? Um, it's wrong. Is that one of the true ones? I mean, all of these are are right and wrong. If it's done correctly, they're all going to work. Right. Right. That's a great point. The indexing, it does work, and

that's why we love it so much. I mean, we love all these little snapshots in time, the early 2000s, 2008, two, you know, what we just experienced in with COVID and then can we say that on YouTube still? But even this last couple of months, we experienced that and it has proven that indexing does work. Yeah. And that's why we love it so much that again we don't care when the market

goes down. We don't lose money but in fact we kind of like it because the indexes reset at that low level and then they grow and earn all of that interest back that everyone else is still trying to just trying to get that money and we were earning right from day one as soon as the market goes up. I started a policy in 2007. My very first year was 2008. What did I get? Zero. Zero. But it was a lock in and reset and all of a sudden I'm like, "Oh, that's cool. I

didn't lose 40%." You know, if you would have put that in the stocks, you would have lost 40%. And then 2009 and 10 and 11 and 12, while other people were trying to kind of claw back just to get to the break even point, here I was getting getting these returns that were just awesome and I didn't get a zero in the very year the market crashed in the first place. The reason I was getting those rebound returns, I had a guide reset's the biggest thing people need to

understand. Absolutely. So, watch our other episodes. Annual reset. I talked to a guy how it works. Oh, yeah. Yeah, that's a good point. I talked to a guy in 2007. He was going to do one of these

IL policies. Then the market crashed. He's like, "Oh, I need to wait until I earn my money back." Oh, yeah. Four years later, he called back, "All right, I finally got my money back. I'm ready to do this." Which is crazy. Why in the world would you get wait till your money gets back? Share share 30% of that recovery with Uncle Sam in taxes, right? If the market crashes, pay Uncle Sam what he owes on what he on a smaller balance. Oh, pay him less than the the market's

going to come back up. Are you going to give him 30 40% of what it comes back up as? Right. Ride the market back up taxfree. Yeah. Think about it. Okay. Okay. Attack number five. You have to use loans to get your money out. Nobody wants to use loans. Wait, you have to use loans. Um, let's see. Doug, I'm going to come back to you on this one. Loans are such a scary word for people. What would you say to this attack? Well, first of all, uh, you have to use loans. No, you

don't. Right. In my book, I talk about the sad way to access money. That's by dying. I don't recommend that one. It's one heck of a return, but I don't recommend that one. Yeah. Comes at a high cost. Yeah. Uh there's the dumb way and that's to withdraw your money because it's no longer there earning interest. And so the third way is the smart way and that's to borrow. So let me simplify this. Okay, that's chapter

eight by the way of the book. Okay, you are borrowing money technically from the insurance company and leaving your money there in the policy earning compound interest tax-free earning 93 million and you're borrowing at a lower amount than what they're charging. Or it can be a zero wash loan. You can borrow at 2% and they can credit you 2%. But most savvy people, they will borrow with an index

or an alternate loan like four or 5%. So let me go to you with this Amaran you have a client that uh in March of 2020 co 19 the market dropped how far it dropped about 15 to 18% in one in about two weeks about two week period of time. Yeah. And that spelled opportunity when there's anxiety spelled opportunity by and so you contacted uh about 800 of your clients or more and you told them

to uh move to what strategy? Well, one I mean if you're going to be at that low point, you don't want to, you know, a lot of times in indexing you have like these caps, right? So you want to try to see if it's possible to remove that cap. Yeah. And you have different choices in in many policies. And not just you don't want to just just remove the cap. you want to remove the cap on a volatile

index like the S&P 500, right? And so what that means is because the likelihood the market was going to be up a year later, one year later was highly likely. We didn't know for sure, but highly likely. Well, even if it went down again, they still would have been protected at what zero. I mean, the worst cases in the scenarios, they get zero no matter which strategy I'm in. So this strategy was a one-year pointto-oint with no cap, but it's called a threshold. We usually don't use

that because maybe they charge 5%. Okay. Anywhere but yeah. And so we don't usually use it because if you average 12 and you and and you subtract five, you only net seven. Well, in that case, a year later, the market was up 66.3%. Minus 5 equals a net of 61 61.33%. in a life insurance policy. This tax several clients who earned that, but the one I'm thinking about had um about 850,000 and it got credited 535 grand in one single year taxree and at the end of one year it was now worth

a,387,000. So here's my question. If that client needed some money, he could have withdrawn out of that 852,000. He could have withdrawn 800 grand. Yeah. Yeah, he could. Yeah, he could have withdrawn that. Okay. But if he would have borrowed 800,000 from the insurance company, he doesn't have to qualify for a loan. He just he just says, "I changes the nomenclature." If he borrowed 800,000, how much better off was he rather than withdrawing 800,000 by using

a loan? Well, I think the uh I think the name of this uh podcast is 93 million for a reason. It's talking about the miracle of compound interest. I watched the first episode. And so again, if you take out that if he takes out that 800, if he withdraws it, he no longer has that money working for him. It's gone. Missed out on a half a million bucks. Correct. Now he now by taking it as a loan, that money stayed in there. He made an extra half a million. You're exactly right. He made an extra

$500,000. Now you might argue, well, yeah, what about the interest on the loan? Sure. If you take 5% on 800 grand is 40 40,000 40,000 would you would you trade 40,000 to make 500,000? Yeah absolutely I mean well that's what's so powerful these Thank you Captain Obvious they can they can access money before 59 and a half and can you pay back a loan?

Yep. So they can put it back, they can pay it back, they can take it out and and with other business people can use this working capital flexible and liquid where other financial products they take money out, they can't put it back. So you're saying the loans are a good thing. I'm getting that impression. They're they're amazing if you have that millionaire mindset, right? That millionaire mindset allows you to think differently, become your own banker.

Yes. All right. Hey, if you're enjoying this content and you're wondering how you can 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 laserfinanicial.com or call 8015049 to schedule a free consultation and see how these strategies can work for you. Don't wait. Take the step uh the first step toward a brighter, more secure financial future today. This content also brought to you by I

insiders. If you're a financial professional tuning into the show and you're wondering how you can expand your business working with index univers universal life or IL, join us for the IL challenge. It's a free 3-day event designed specifically for financial professionals who want to master the art and science of IL. Visit iulchallenge.com3 to save your seat. Spots are limited, so don't wait. That's ILchallenge.com/93. take your business to the next level. And now for the podcast question of the

day. It's uh summer season and many people are planning vacations. Doug, uh you've put a twist on this and you've talked about something that you call vacations with a purpose. What is a vacation with a purpose? This will be our final uh segment for today. I love this topic and I talk about this in my book, Entitlement Abolition, by the way.

But a family vacation or retreat with a purpose or a business retreat with a purpose instead of just going on a vacation and you know it's uh stressful or whatever you're driving somewhere you

get there and people just lay around on the beach and they want to go some want to go shopping and everything like that. They go I started to introduce no let's go on a family vacation and have a purpose. Yes. And you know at first resistance what what are you going to do? Well, I want to teach you some things. I don't want to go learn. I I'm out of school. I want a vacation without Hey, quit picking on errands so much over here. I want to know.

Okay. What it is, okay, we scuba dive, hike, golf, fish, and we do all kinds of neat activities, but a a vacation with a purpose. We would have a theme, okay? And uh we would sometimes they would be spiritual themes because we're Christian and and we would but we would gather together daily for uh a little devotional in the morning and uh we would even have uh stories for the little children. Sometimes we'd hire a babysitter. Sometimes we would have an activity and we would take turns

teaching. We might be studying a book like the intentional family. But by the end my book learning curves we divided that up and we would just have discussions. But you know it might be 40 minutes in the in the morning. Then you go out and you coordinate activities and some go are going golfing or scuba diving or snorkeling or whatever. And then you gather together for dinner and during dinner you have maybe I remember

when memories that you share. Then in the evening you gather together for another 20 30 40 minutes and you have a story for the children and you talk about things that matter most and you capture things. I captured my father's whole life sketch, 130 pages on a family vacation with a purpose in one single week. Wow. Whenever anybody's done it and they experience it, the kids just beg when can we have another family vacation with a purpose and they were the ones resisting, we don't want to go

learn. So, what would you add to the experiences that we've had having family vacations with a purpose? You've all been involved. Yeah. I I refer to probably one of my favorite quotes from one of the books we read at one of our family truth of purpose. You know, William George Jordan who you know say yeah truth of purpose is kind of like what he said in his book where he says you consciously train your mind and body to unconsciously be in alignment with

your core values. I love that. You know, so I mean you list out what are your family core values? Well, how are you intentionally training your mind and body so that it consciously training it so it unconsciously lives in alignment with those? And that's what the family the purpose the whole point is is to allow yourself to be in alignment to with your with what matters most. Yep. The next generation, our kids are have been loving Grandpa's Camp, which is

another version of this. Yeah, we'll do we'll do another segment on Grandpa's Camp. So, yeah, with that, like my kids love these family retreats with a purpose. They love like every year doing Grandpa's Camp, learning about what they can do, what they're going to be learning and so forth. So, yeah, we got one coming up here soon. I mean, it seems like it makes the vacations more meaningful, right? Not less meaningful because it has a purpose. Kind of

interesting. Yeah. Interesting. Years ago, we were going to Hawaii for one of our family retreats with a purpose. And I suddenly realized we really wanted to buy a house the previous year. We bought a house or kind of like a home. We really wanted to. Yeah. Yeah, Emran and his wife were really wanting to have a baby. They were pregnant. Aaron really wanted to get a tax deduction. I mean, wanted to get married and he got

married. So, all of those things that we kind of planned for and we wanted to like were goals from our family retreat with a purpose, we had attained those. All kind of happened. Scott Reynolds is our brother-in-law, by the way. Yeah, that's right. All the way around the circle and reported. And talk about a payday. Talk about a payday when everybody's gone. You guys all reported on that. They set the year before it had

all come to fruition. Now, you can convince me in a million years that that would have happened just by chance. That's fantastic. Okay. Hey, 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 this video and we may use your question in one of our next shows. Well, that's all the time we have for today. Don't just follow the crowd. Be your own fiduciary. Have a great week and we will see you next time. Thanks everybody. Hey, Chairman Atkins. take. Yeah. No, thank you. Yeah. Number 55. Yeah. I like

it. All right. Thanks. Yeah. Call me back. [Music]