How To Become Your Own Banker To Make 100% Returns

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The fifth of five ways to stack up an extra million bucks. In this episode, I’m going to

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address how to become your own banker to make 100% returns. Get ready, it’s going to blow you away.

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So, my name’s Doug Andrew and I’ve been helping people optimize assets and minimize taxes prepare

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for a comfortable retirement so they will not outlive their money now for more than 48 years.

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But in this episode, get ready, because I’m going to give you a sneak preview right now. I’m going

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to talk about how to become your own banker and do what banks do to make 100 percent rates of return

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up to 500 rates of return yep and then my favorite instrument which I call the laser fund and how

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that can predictably double your money probably every seven and a half years based upon my actual

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history of using this instrument ever since 1980. And as you do that, I’m going to show you a concept

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of safe positive leverage which is the ability to own and control assets with very little or

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none of your money is tied up at risk in that asset. Leverage without liquidity of stupidity and I’m

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going to explain that to you and then by doing this you’ll be able to do what banks do borrow

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even your own money at a lower rate and continue to earn a hundred percent or more

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on that money that you borrow and you use it for your business. But you will accumulate

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millions, not just 1 million. You do this for 15, 20, 30, years and you will end up

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like many of my clients with over 10 million extra dollars by learning how to become your own banker.
What Do Banks And Credit Unions Do

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So, let’s start with the milk, and then we’ll get to the meat what do banks and credit unions do what

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does the multi-trillion dollar insurance industry do. They’re the backbone of america by the way.

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If you’re not aware in the great depression there was a lot of real estate that dropped 80 percent

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in value. Banks closed 40% never reopened again. The legal reserve insurance companies in

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the great depression all came through with flying colors not one went under in the great depression.

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It’s because they have to have reserves on hand that are liquid and safe in case of a run on their

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institution and so in 2008 when over 400 banks in America because of the mortgage meltdown if you

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remember this. There were 400 banks in America that went under. 900 more were on the brink it’s called

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the watch list going under. The federal government was concerned. Now, a lot of americans don’t realize

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how close we came to a total financial collapse in 2008. So, the federal government asked the five

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major banks in America to disclose where they had their tier-one assets for liquidity and safety.

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Guess where they had it? In insurance companies and these insurance companies maybe just credited them

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a four or five percent this is in 2008. So, let me tell you what was happening. Banks in 2008 were

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borrowing OPM other people’s money. Meaning, when we put money into a bank or a credit

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union it’s in a lended position. Are they just a benevolent institution paying us interest? No.

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They’re loaning it back. They are investing it. But they said that we put 30 to 40 percent of it

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for liquidity and safety into insurance companies, they’re bigger they’re stronger. See, some of these

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insurance companies where I have my money manage trillions of dollars. In fact, one has as much money

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as the IRS collects in taxes in an entire year and that’s just one insurance company. This is where
Where Governments Go To For Help

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many governments go to for help when they need it is to the multi-trillion dollar insurance industry.

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So, I just bypass the bank put my money where the banks put it. But what were the banks doing? They

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were paying let’s say one percent. Now, one percent every million they borrow at one percent interest

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or that they pay one percent interest to us. On an annual basis they’re only paying out 10 grand.

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They turn around and put that million in insurance companies and earn five.

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That’s what they were doing in 2008. How much more is five than one? Don’t say four, it’s five hundred

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percent is five times. They were paying 10 grand and they were earning 50,000 on that money. Would

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you hire an employee for 10 grand that may do an extra 50 grand? Would you buy a widget machine for

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10 grand that made you an extra 50 grand? You bet. That’s called a 500% return on employment costs or

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equipment cost, business owners get this. So, that’s what banks and credit unions do. Now, you can become

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your own banker. So, my favorite instrument where I bank my own money is in a max funded indexed
Where To Bank Your Own Money

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universal life insurance contract and in other episodes on this channel I talk about how to take

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the least amount of insurance the IRS will let you get away with and put in the most money the

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IRS allows and it turns into a tax-free cash cow. Where I have averaged I earn 11 and I need 10.

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I’ve actually earned an average of 9.62 percent on my, I call them laser funds ever since I began

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owning them clear back in 1980. Now, before I go any further, if this is already arousing that curiosity

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be sure and post a comment, click like, share it with somebody. But subscribe to this channel

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it’s free and I post a new educational video almost on a daily basis. So, here we go. Let’s say
What Is A Systematic Accumulation

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that you get it and you begin to sock away money. In other episodes on how to stack up a million

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bucks I talk about just systematic accumulation. You could stock away 5,000 a month for 120

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months and you’ll have a million dollars tax-free in the laser fund. Let’s say you put in 250,000

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and then added a 2,000 a month and you did that for 10 years, you’ll end up with a million bucks.

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You can rent out an apartment on Airbnb for 7,000 a month which is 350 bucks a night and

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your mortgage might be or your rent might be two thousand. You suck away that five thousand. You’re

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going to end up with a million dollars. So, let’s take that snapshot in time because I have many

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many clients that I’ve mentored that end up with at least a million dollars or more. So, far so good?

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So, let’s take that snapshot in time. You now have one million in your laser fund, your max funded IUL.

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Now, here’s what savvy smart business owners do. They operate as their own bank. Now, listen very
How To Become Your Own Banker To Make 100% Returns

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close. Stay with me here. You have a million dollars and now you see an opportunity. Now, I have many

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clients that invest in real estate. So, I’m going to use an example of one of my clients that

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his specialty is to find multi-unit apartment complexes that the seller just wants out. They’re

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tired of being a landlord, fixing toilets, they’re beating tenants, and so forth, and

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they don’t want to even fix up the property, they just want to liquidate it. So, he finds

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those properties and he buys them and he fixes them up and then he turns around and flips them.

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He doesn’t like to be a landlord himself either. So, just like somebody that buys and flips houses by

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fixing them up he buys big apartment complexes and fixes them up and then flips them because he has

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a pool of investors that want to buy apartment complexes that are fixed up and have good cash

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flow. So far so good? He comes across one and it could be golly 10 million, 15, 20 million. Many

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times he needs an earnest money. So, he will call me up and he’ll say, “Doug, I need a million dollars

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to tie up this piece of property. Send me over that form”, now it’s one page. I email it to him and

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he has his laser fund his IUL policy and he puts his name and his policy number which is like an

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account number and then it says, “Would you like to withdraw a million out of your policy or would you

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like to borrow?”, what do you think he does? He’s smart he borrows. See, if he withdrew the million

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now he doesn’t have the million in his policy earning interest. That’s okay, he can do that.

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He doesn’t have to pay tax when he withdraws it but he is a business owner. He’s savvy. So, he

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borrows and people go why would he borrow his own money? There’s two ways he can borrow. The first way
How To Borrow Your Own Money

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is called a zero wash or zero cost loan. He can tell the insurance company, “You know, I think

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we’re headed for a recession. So, I will borrow a million”, and in order for it to be tax-free

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the insurance company has to charge him at least a nominal interest rate. So, that might be two percent.

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So, the insurance company is charging him two percent a year which is 20 grand but

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he doesn’t have to write out a check for 20,000. That loan is not doing payable during his lifetime.

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Because the insurance company is crediting on that collateral that million in the policy

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the same two percent. So, he borrows it to they credit to it’s a zero watch loan it doesn’t cost

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him anything to call it a loan and that’s what qualifies the million to be tax-free. But he’s

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savvy. Usually, he will use the index loan like I do. Now, what’s an indexed loan? By the way, if this is

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going wow be sure and subscribe to this channel. This is just the tip of the iceberg folks. So,
What Is An Indexed Loan

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he goes for the index loan which means okay you can charge me four percent or five percent of my

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million. Why would you want to pay four or five percent to borrow a million out of your policy

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when you could just be charged two? Because the million that is still in your policy because you

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didn’t withdraw it yeah, it’s just semantics. You’re borrowing by having your million as

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collateral and now you’re saying, “Okay, you can charge me five percent”, he did this in 2017. He

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borrowed a million out and they charged him five percent. What’s five percent on a million? That’s 50

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grand. He didn’t have to write out a check for 50 grand. Because they credited him the indexed rate

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that year on the million that he left in the policy. Guess what he earned in 2017? He capped out

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on his universal life at 25%, 25% on a million was 250 grand. Are you with me? They deducted 50,000 out

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of the 250,000 he earned he netted 200,000 dollars of growth on the million in his policy

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tax-free. He netted twenty percent return tax-free on his policy while he was using the million

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to acquire an apartment complex that he fixed up and he sold and he made two or three million.

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Is this blowing you away? This is how many savvy people accumulate millions of extra dollars by

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accumulating in a laser fund tax-free and then becoming their own banker and borrowing money.

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I don’t care if you borrow money at five and you earn ten. How much more is ten than five? A hundred

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percent. Would you hire an employee for fifty grand that made you an extra 100 grand? I do that all day

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long. That’s actually been the average is earning 100% more than the cost of borrowing out of a max

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funded IUL. Some years you may not other years you may make 25%. As of the recording of this episode

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last year in 2021 we had clients on their indexed universal life lock-in gains of 61.33 percent.

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Yep, so let me just give you one other little aha here. Let’s say you borrowed a million out of an
What Happens When You Borrow From An IUL

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IUL policy at five percent and you could earn 10%. But what do you do with a million? Let’s

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say you go out and buy five rental properties and you only pay 20% down on each of those.

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So, the rental properties now are being rented out for double what the interest payment is being charged.

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So, you got this positive cash flow and you’re getting some tax breaks because you’re able to do

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that or maybe you went to a mortgage company and borrowed it. You can leverage safely but maintain

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liquidity by putting it into the IUL. So, you can take that and pay it back into the IUL policy

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and you can actually end up putting money back into where over just a period of 10 years or so

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you can end up with an extra 5.75 million bucks by borrowing on your IUL leveraging safely on

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property and then taking the cash flow putting it back into the IUL and you’re still earning

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money on the original balance that was in there because you leveraged on your IUL. If your brain is

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going “whoa” you need to read my book. So, here’s how you can claim your free copy. This is book number
FREE Copy Of The LASER Fund Book

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11 and it’s been flying off of our warehouse shelves. It’s 300 pages it’s called the laser fund.

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Laser is an acronym that stands for liquid asset safely earning returns. This will teach you how to

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diversify and create the foundation for a tax-free retirement and you’ll learn in here and on this

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channel how you can accumulate an extra million bucks all kinds of different ways. But this is the

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working capital account that most savvy investors use. Simply go to laserfund.com or click on the

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link below. You contribute a nominal amount towards the shipping and handling I’ll cover the rest of

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that cost. I will pay for the book. I’ll fire out a hard copy to you. There’s options there to listen

13:59
and learn, watch and learn, and also masterclasses 18 hours. You can also register to attend webinars

14:07
that we teach because I’m passionate about helping people like you optimize assets and minimize

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tax. So, claim your free copy, read how other people do this. This will help you achieve

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financial independence far safer and faster than most Americans do by following the herd putting

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their money in tax-deferred IRAs or 401ks in a volatile market. That is unacceptable to me.