In These Wild Times, Don’t You Wish You Had a Retirement Vehicle Like This?
We know it’s wise to set aside serious cash for our future retirement.
We also know it’s wise to have money you can access quickly in times of emergency.
Well what happens when an economic crisis hits (like the Recession or Depression that many predict is headed our way in the aftermath of COVID-19) AND you still want to prepare for your retirement?
You don’t have to choose between the two.
You CAN have a superior retirement vehicle and a liquid account you can access in times of need. The LASER Fund can provide both, in amazing ways.
Technically speaking, The LASER Fund is a properly structured, maximum-funded, tax-advantaged universal life insurance policy. In many of my articles, videos, and books, I speak to the left-brain side of things, giving you numbers and charts to help you understand the financial strategies we’re discussing.
But there’s also a right-brain side to all of this—the real-life stories of people we’ve worked with over the years. Their experiences help illustrate how these strategies have impacted their personal lives, and can give you insight into how it all might relate to your life as well.
HEALTHCARE CRISIS – RESOLVED RIGHT AWAY
Take a healthcare emergency, for example. We had a client, whom we’ll call Beth, who put $200,000 into her LASER Fund and made an oath, “I will not touch this for 20 years.”
Not long after, she was involved in a horrific car accident on a trip to California. Beth called from the hospital and said, “Remember I told you I wouldn’t touch it for 20 years? I’m going to be in critical care for a while; I almost died. I need $120,000 right now to cover all of this medical care.”
Doug said, “Beth, I’m so glad you survived! Okay, you need $120,000? No problem.”
About five days later, she called to ask how long it would take to get that $120,000.
Doug replied, “Oh, that’s right, you’re stuck in the hospital. You wouldn’t know—it’s probably already in your mailbox.”
She called her son to check, and sure enough it was right there, in her mailbox.
She couldn’t believe it was that easy, and that it was income-tax-free. If her money had been in another type of vehicle, things would have been much more difficult. If she had invested that $200,000 in a piece of real estate, she would have had to put the property up for sale (which would have taken much longer than a few days to access for liquidity) and pay capital gains on any profit.
If she’d had her money in a 401(k), she could have had relatively quick access to her money, but she would have paid a 10% penalty for withdrawing her money before age 59½, and she would have owed income taxes on that $120,000 (and the additional income could have push her into a higher tax bracket).
MOVING MONEY OUT OF IRAS & 401(k)s – ENJOYING THE REWARDS
We had a couple come to us, both physicians. Over the years they had diligently socked away money for retirement, ending up with $4.6 million in several yet-to-be taxed IRAs or 401(k)s.
They wanted their money to have greater tax advantages and better protection from market volatility, so they were interested in doing a strategic rollout—moving the money from their IRAs and 401(k)s into a portfolio of four LASER Funds.
As part of that process, their CPA, who was not as familiar with our strategies, encouraged them to take a more traditional approach by pulling all their money out of the IRAs and 401(k)s at once, which would have cost them as much as $2.4 million in taxes. We proposed a different rollout strategy and were able to save them $1.2 million in taxes.
Not only were they able to open those four LASER Funds, but they were able to take that $1.2 million they saved in taxes and use it for a host of other things.
They set aside money for college funding and matching plans for their grandchildren; they took cruises; they gave to causes.
They were thrilled to use that money for things they cared about, rather than having it go toward unnecessary taxes. And they had peace of mind knowing when they would ultimately pass away, their LASER Funds would blossom to over $8 million in death benefits that would transfer income tax-free to their heirs.
There’s not a Roth around that will do that, let alone a traditional IRA or 401(k).
These examples demonstrate the many ways a LASER Fund can provide so much for your retirement—as well as other needs along the way to retirement. I’ve written 11 books that cover different aspects of this vehicle.
My latest book on the subject, The LASER Fund, dedicates nearly half of the book to clients’ stories just like these. Thousands of readers have found it helpful to see The LASER Fund in action in people’s lives. If you’re interested—we can make sure you get a free copy to explore the concepts more for yourself.
Hear Doug talk about related concepts in his YouTube insights:
Disclaimer: With any mention of The LASER Fund, maximum-funded tax-advantaged insurance contracts, or related financial vehicles, let it be noted that life insurance policies are not investments and, accordingly, should not be purchased as an investment. The content contained in this post is intended for general informational purposes only and is not meant to constitute legal, tax, accounting or investment advice. You should consult a qualified legal or tax professional regarding your specific situation. Many traditional retirement vehicles involve risk, and the value of your investment will fluctuate over time and you may gain or lose money.