How To Become Your Own Banker To Make 100% Returns

Summary

In this episode by Doug Andrew of 3 Dimensional Wealth, the focus is on becoming your own banker to achieve returns as high as 100%. Doug explains how you can optimize your assets and minimize taxes to prepare for a financially secure retirement. He introduces the concept of safe positive leverage and using tools like the laser fund, showing how banks and insurance companies operate. With strategies like borrowing against your own money at lower interest rates and reinvesting it, Doug demonstrates how you can potentially accumulate millions over time, making these tactics highly effective for smart investors.

Highlights

• Learn how to earn 100% returns by becoming your own banker. 💸
• Discover Doug Andrew's favorite instrument, the laser fund, to double your money every 7.5 years. 🤯
• Understand the power of safe positive leverage and how to use it. 🔑
• Banks and insurance companies have strategies you can learn from for financial security. 🧠
• Find out how Indexed Universal Life Insurance can be a tax-free profit machine. 📚

Key Takeaways

• Become Your Own Banker: Use strategies to earn high returns by leveraging your own money. 📈
• Leverage Like Banks: Learn from banks and the insurance industry to maximize your financial growth. 🏦
• Maximize Returns with IUL: Use Indexed Universal Life Insurance for tax-free growth. 💰
• Smart Borrowing: Take loans on your assets for strategic reinvestment. 🤓
• Secure Financial Future: Optimize assets and minimize taxes for a secure retirement. 🛡

Overview

Doug Andrew kicks off the session by introducing a game-changing concept: becoming your own banker. Imagine optimizing your assets and minimizing those dreaded taxes. He's spent decades guiding folks towards a comfortable retirement, and now he's spilling the secrets to earning 100% returns. Get ready; this approach is mind-blowing, leveraging strategies used by banks to supercharge your savings.

With the help of his favorite tool—the laser fund—Doug dives into how he’s been doubling money predictably since 1980. The trick lies in understanding how banks operate during financial upheavals, much like the Great Depression or the 2008 crisis. Insurance companies play a pivotal role too, providing liquidity and safety. Doug's breakdown of safe positive leverage allows controlling and owning assets with minimal risk—a true win-win of financial agility.

Doug dishes out the ultimate play for business-savvy minds: use your Indexed Universal Life Insurance policy for almost magical returns. By borrowing against it, your money keeps growing tax-free while you invest elsewhere. It’s like learning from the pros how to be your own financial wizard. Whether you’re buying rental properties or flipping apartments, these clever tactics could lead to you stacking millions in no time, ensuring you don’t just follow, but thrive financially.

Chapters

• 00:00 - 00:30: Introduction and Overview In this introduction and overview chapter, Doug Andrew discusses the fifth strategy out of five for accumulating an extra million dollars. He focuses on the concept of becoming one's own banker to achieve a 100% return on investment. Doug introduces himself and mentions his expertise in helping individuals optimize their assets and minimize taxes.
• 00:30 - 01:30: Becoming Your Own Banker This chapter introduces the concept of becoming your own banker to secure a comfortable retirement without the risk of outliving your money. The host provides insights into achieving high rates of return, similar to banks, with methods discussed in upcoming episodes. A preview includes the introduction of the 'laser fund,' a mechanism to potentially double investments every seven and a half years, based on past performance.
• 01:30 - 02:30: Concept of Safe Positive Leverage The chapter introduces the concept of safe positive leverage, explaining it as the ability to own and control assets with minimal personal financial risk. It emphasizes the importance of avoiding leverage without liquidity, labeling it as 'stupidity'. The chapter promises to detail how to achieve leverage safely, allowing individuals to operate like banks by borrowing strategically.
• 02:30 - 03:30: The Role of Insurance Companies The chapter discusses the concept of leveraging insurance companies to accumulate wealth over time. It highlights the strategy of borrowing against your own money at a lower interest rate, while still earning high returns on that money, to fund business ventures. The approach suggests that by doing so consistently over extended periods such as 15, 20, or 30 years, individuals can significantly increase their wealth, potentially by millions of dollars. This method is part of a broader financial strategy known as becoming your own banker, which positions individuals to manage their finances akin to how banks and credit unions operate. The chapter sets the stage for a deeper exploration into the fundamental practices of banks and credit unions, which will be covered in subsequent sections.
• 03:30 - 04:30: Banking with Insurance Companies The chapter discusses the role of the insurance industry, highlighting its significance as the backbone of America's economy. It reflects on historical resilience, particularly during the Great Depression, when many banks failed, but legal reserve insurance companies remained stable. This stability was attributed to their requirement of maintaining liquid and safe reserves.
• 04:30 - 05:30: Max Funded Indexed Universal Life Insurance In 2008, during the mortgage meltdown, over 400 banks in America failed, and 900 more were on the brink of collapse, putting them on a governmental watch list. This situation caused significant concern for the federal government due to the risk of a total financial collapse. Consequently, the government asked the five major banks in America to disclose where they held their tier-one assets to ensure liquidity and safety.
• 05:30 - 06:30: Operating as Your Own Bank The chapter titled 'Operating as Your Own Bank' discusses the financial strategies banks utilized in 2008, particularly focusing on how banks used other people's money for lending and investments. It highlights the practice of banks borrowing from customers' deposits and investing these in insurance companies, offering returns of four to five percent at that time. This strategy reflects the broader financial operations of banks, emphasizing that they are not merely institutions for safekeeping money, but actively engage in significant investment activities to generate profits.
• 06:30 - 08:00: Case Study: Real Estate Investment This chapter discusses the role of insurance companies in real estate investment, particularly focusing on their strength, reliability, and the sheer scale at which they operate. Highlighting that some insurance companies manage trillions of dollars, it emphasizes their size by comparing their assets to the annual tax collection of the IRS. The chapter points out the strategic financial decisions of some governments and investors to place money with these massive insurance entities rather than banks, suggesting a smart financial tactic for liquidity and safety.
• 08:00 - 09:00: Borrowing vs Withdrawing This chapter discusses the concept of borrowing versus withdrawing, specifically in the context of borrowing funds at a low-interest rate and reinvesting them at a higher rate. It uses a hypothetical example of borrowing at one percent interest, which costs 10,000 dollars annually per million borrowed, and reinvesting in insurance companies that earn a five percent return, generating 50,000 dollars annually. The example highlights how borrowing at a lower rate and investing at a higher rate can be significantly profitable. This concept was notably used in 2008, illustrating the strategy's potential for high earnings leveraging the interest rate differential.
• 09:00 - 10:00: Indexed Loans and Returns The chapter "Indexed Loans and Returns" discusses a scenario where investing in human resources or equipment can yield a significant return on investment—500% to be precise. This concept is familiar to business owners and is a principle that banks and credit unions operate on. The chapter introduces the idea of becoming your own banker, utilizing a financial instrument known as a max-funded indexed universal life insurance contract. The narrator mentions that other episodes explore this topic further.
• 10:00 - 11:00: Tax-Free Accumulation Tax-Free Accumulation discusses strategies to maximize the effectiveness of insurance policies from a tax perspective. It highlights the concept of acquiring the minimal amount of insurance required by IRS and maximizing the contribution to make it a substantial tax-free asset. The chapter provides anecdotal evidence of earning a significant average return on these insurance funds, referred to as 'laser funds,' since 1980. The narrative is designed to pique curiosity about the financial benefits of these strategies.
• 11:00 - 12:00: Success Stories and Conclusion In the concluding chapter titled 'Success Stories and Conclusion', the speaker encourages the audience to engage with the channel by commenting, liking, and sharing the content, as well as subscribing for free to receive daily educational videos. The chapter emphasizes the importance of systematic financial planning and saving, using the example of accumulating wealth over time. By saving $5,000 monthly for 120 months, one could potentially accumulate a million dollars tax-free in a laser fund. This example illustrates strategic financial growth and the success stories that can come from disciplined saving.

How To Become Your Own Banker To Make 100% Returns Transcription

• 00:00 - 00:30 The fifth of five ways to stack up an extra  million bucks. In this episode, I'm going to address how to become your own banker to make  100% returns. Get ready, it's going to blow you away. So, my name's Doug Andrew and I've been helping  people optimize assets and minimize taxes prepare
• 00:30 - 01:00 for a comfortable retirement so they will not  outlive their money now for more than 48 years. But in this episode, get ready, because I'm going  to give you a sneak preview right now. I'm going   to talk about how to become your own banker and do  what banks do to make 100 percent rates of return   up to 500 rates of return yep and then my favorite  instrument which I call the laser fund and how   that can predictably double your money probably  every seven and a half years based upon my actual
• 01:00 - 01:30 history of using this instrument ever since 1980.  And as you do that, I'm going to show you a concept   of safe positive leverage which is the ability  to own and control assets with very little or   none of your money is tied up at risk in that asset.  Leverage without liquidity of stupidity and I'm going to explain that to you and then by doing  this you'll be able to do what banks do borrow
• 01:30 - 02:00 even your own money at a lower rate and  continue to earn a hundred percent or more   on that money that you borrow and you use  it for your business. But you will accumulate   millions, not just 1 million. You do this  for 15, 20, 30, years and you will end up   like many of my clients with over 10 million extra  dollars by learning how to become your own banker. So, let's start with the milk, and then we'll get to  the meat what do banks and credit unions do what
• 02:00 - 02:30 does the multi-trillion dollar insurance industry  do. They're the backbone of america by the way. If you're not aware in the great depression there  was a lot of real estate that dropped 80 percent   in value. Banks closed 40% never reopened  again. The legal reserve insurance companies in the great depression all came through with flying  colors not one went under in the great depression. It's because they have to have reserves on hand  that are liquid and safe in case of a run on their
• 02:30 - 03:00 institution and so in 2008 when over 400 banks  in America because of the mortgage meltdown if you   remember this. There were 400 banks in America that  went under. 900 more were on the brink it's called   the watch list going under. The federal government  was concerned. Now, a lot of americans don't realize   how close we came to a total financial collapse  in 2008. So, the federal government asked the five   major banks in America to disclose where they had their tier-one assets for liquidity and safety.
• 03:00 - 03:30 Guess where they had it? In insurance companies and  these insurance companies maybe just credited them   a four or five percent this is in 2008. So, let me  tell you what was happening. Banks in 2008 were   borrowing OPM other people's money. Meaning, when we put money into a bank or a credit   union it's in a lended position. Are they just  a benevolent institution paying us interest? No.  They're loaning it back. They are investing it. But they said that we put 30 to 40 percent of it
• 03:30 - 04:00 for liquidity and safety into insurance companies,  they're bigger they're stronger. See, some of these   insurance companies where I have my money manage  trillions of dollars. In fact, one has as much money   as the IRS collects in taxes in an entire year and  that's just one insurance company. This is where many governments go to for help when they need it is to the multi-trillion dollar insurance industry. So, I just bypass the bank put my money where the  banks put it. But what were the banks doing? They
• 04:00 - 04:30 were paying let's say one percent. Now, one percent  every million they borrow at one percent interest   or that they pay one percent interest to us. On  an annual basis they're only paying out 10 grand. They turn around and put that million  in insurance companies and earn five. That's what they were doing in 2008. How much more is five than one? Don't say four, it's five hundred   percent is five times. They were paying 10 grand  and they were earning 50,000 on that money. Would
• 04:30 - 05:00 you hire an employee for 10 grand that may do an  extra 50 grand? Would you buy a widget machine for   10 grand that made you an extra 50 grand? You bet. That's called a 500% return on employment costs or   equipment cost, business owners get this. So, that's  what banks and credit unions do. Now, you can become   your own banker. So, my favorite instrument where  I bank my own money is in a max funded indexed   universal life insurance contract and in other  episodes on this channel I talk about how to take
• 05:00 - 05:30 the least amount of insurance the IRS will let  you get away with and put in the most money the   IRS allows and it turns into a tax-free cash cow.  Where I have averaged I earn 11 and I need 10.   I've actually earned an average of 9.62 percent  on my, I call them laser funds ever since I began   owning them clear back in 1980. Now, before I go any further, if this is already arousing that curiosity
• 05:30 - 06:00 be sure and post a comment, click like, share  it with somebody. But subscribe to this channel   it's free and I post a new educational video  almost on a daily basis. So, here we go. Let's say   that you get it and you begin to sock away money.  In other episodes on how to stack up a million   bucks I talk about just systematic accumulation.  You could stock away 5,000 a month for 120   months and you'll have a million dollars tax-free  in the laser fund. Let's say you put in 250,000
• 06:00 - 06:30 and then added a 2,000 a month and you did that  for 10 years, you'll end up with a million bucks. You can rent out an apartment on Airbnb for  7,000 a month which is 350 bucks a night and   your mortgage might be or your rent might be two  thousand. You suck away that five thousand. You're   going to end up with a million dollars. So, let's  take that snapshot in time because I have many   many clients that I've mentored that end up with  at least a million dollars or more. So, far so good?
• 06:30 - 07:00 So, let's take that snapshot in time. You now have  one million in your laser fund, your max funded IUL. Now, here's what savvy smart business owners do.  They operate as their own bank. Now, listen very   close. Stay with me here. You have a million dollars  and now you see an opportunity. Now, I have many   clients that invest in real estate. So, I'm going  to use an example of one of my clients that
• 07:00 - 07:30 his specialty is to find multi-unit apartment  complexes that the seller just wants out. They're tired of being a landlord, fixing toilets,  they're beating tenants, and so forth, and   they don't want to even fix up the property,  they just want to liquidate it. So, he finds   those properties and he buys them and he fixes  them up and then he turns around and flips them.   He doesn't like to be a landlord himself either. So,  just like somebody that buys and flips houses by
• 07:30 - 08:00 fixing them up he buys big apartment complexes and  fixes them up and then flips them because he has   a pool of investors that want to buy apartment  complexes that are fixed up and have good cash   flow. So far so good? He comes across one and it could be golly 10 million, 15, 20 million. Many  times he needs an earnest money. So, he will call  me up and he'll say, "Doug, I need a million dollars   to tie up this piece of property. Send me over  that form", now it's one page. I email it to him and
• 08:00 - 08:30 he has his laser fund his IUL policy and he puts  his name and his policy number which is like an   account number and then it says, "Would you like to  withdraw a million out of your policy or would you   like to borrow?", what do you think he does? He's  smart he borrows. See, if he withdrew the million   now he doesn't have the million in his policy  earning interest. That's okay, he can do that.  He doesn't have to pay tax when he withdraws  it but he is a business owner. He's savvy. So, he
• 08:30 - 09:00 borrows and people go why would he borrow his own  money? There's two ways he can borrow. The first way   is called a zero wash or zero cost loan. He can  tell the insurance company, "You know, I think we're headed for a recession. So, I will borrow  a million", and in order for it to be tax-free   the insurance company has to charge him at least a  nominal interest rate. So, that might be two percent. So, the insurance company is charging him  two percent a year which is 20 grand but
• 09:00 - 09:30 he doesn't have to write out a check for 20,000.  That loan is not doing payable during his lifetime.   Because the insurance company is crediting on that collateral that million in the policy the same two percent. So, he borrows it to they  credit to it's a zero watch loan it doesn't cost   him anything to call it a loan and that's what  qualifies the million to be tax-free. But he's   savvy. Usually, he will use the index loan like I do.  Now, what's an indexed loan? By the way, if this is
• 09:30 - 10:00 going wow be sure and subscribe to this channel. This is just the tip of the iceberg folks. So,   he goes for the index loan which means okay you  can charge me four percent or five percent of my   million. Why would you want to pay four or five  percent to borrow a million out of your policy   when you could just be charged two? Because the  million that is still in your policy because you   didn't withdraw it yeah, it's just semantics.  You're borrowing by having your million as
• 10:00 - 10:30 collateral and now you're saying, "Okay, you can  charge me five percent", he did this in 2017. He borrowed a million out and they charged him five  percent. What's five percent on a million? That's 50   grand. He didn't have to write out a check for 50  grand. Because they credited him the indexed rate   that year on the million that he left in the policy. Guess what he earned in 2017? He capped out on his universal life at 25%, 25% on a million was  250 grand. Are you with me? They deducted 50,000 out
• 10:30 - 11:00 of the 250,000 he earned he netted 200,000 dollars of growth on the million in his policy   tax-free. He netted twenty percent return tax-free  on his policy while he was using the million   to acquire an apartment complex that he fixed  up and he sold and he made two or three million.
• 11:00 - 11:30 Is this blowing you away? This is how many savvy  people accumulate millions of extra dollars by   accumulating in a laser fund tax-free and then  becoming their own banker and borrowing money.   I don't care if you borrow money at five and you  earn ten. How much more is ten than five? A hundred   percent. Would you hire an employee for fifty grand  that made you an extra 100 grand? I do that all day   long. That's actually been the average is earning  100% more than the cost of borrowing out of a max
• 11:30 - 12:00 funded IUL. Some years you may not other years you  may make 25%. As of the recording of this episode   last year in 2021 we had clients on their indexed  universal life lock-in gains of 61.33 percent. Yep, so let me just give you one other little aha here. Let's say you borrowed a million out of an
• 12:00 - 12:30 IUL policy at five percent and you could earn  10%. But what do you do with a million? Let's   say you go out and buy five rental properties  and you only pay 20% down on each of those. So, the rental properties now are being rented out for  double what the interest payment is being charged. So, you got this positive cash flow and you're  getting some tax breaks because you're able to do   that or maybe you went to a mortgage company and  borrowed it. You can leverage safely but maintain
• 12:30 - 13:00 liquidity by putting it into the IUL. So, you can  take that and pay it back into the IUL policy   and you can actually end up putting money back  into where over just a period of 10 years or so   you can end up with an extra 5.75 million bucks  by borrowing on your IUL leveraging safely on   property and then taking the cash flow putting  it back into the IUL and you're still earning
• 13:00 - 13:30 money on the original balance that was in there  because you leveraged on your IUL. If your brain is   going "whoa" you need to read my book. So, here's how  you can claim your free copy. This is book number   11 and it's been flying off of our warehouse  shelves. It's 300 pages it's called the laser fund.   Laser is an acronym that stands for liquid asset  safely earning returns. This will teach you how to   diversify and create the foundation for a tax-free  retirement and you'll learn in here and on this
• 13:30 - 14:00 channel how you can accumulate an extra million  bucks all kinds of different ways. But this is the   working capital account that most savvy investors  use. Simply go to laserfund.com or click on the   link below. You contribute a nominal amount towards  the shipping and handling I'll cover the rest of   that cost. I will pay for the book. I'll fire out a  hard copy to you. There's options there to listen   and learn, watch and learn, and also masterclasses  18 hours. You can also register to attend webinars
• 14:00 - 14:30 that we teach because I'm passionate about helping  people like you optimize assets and minimize   tax. So, claim your free copy, read how other  people do this. This will help you achieve   financial independence far safer and faster than  most Americans do by following the herd putting   their money in tax-deferred IRAs or 401ks in  a volatile market. That is unacceptable to me.