Need Money for Your Business?

Hi. Doug Andrew here, founder of Three Dimensional Wealth. In our spring twenty twenty six, edition of Three Dimensional Wealth Living magazine, it’s about forty pages and, we always have a an article which talks about, IUL and all of the various uses that, we use a property structured max funded IUL laser fund for. It’s like a financial Swiss army knife. Okay? And in this edition, the article focuses on business owners and, especially those that need money for business. And so I I implore you to study this as very powerful. Even if you don’t own a business, maybe you’ll wanna start a business because I I firmly believe that everybody should have some type of a business, even a home based business because of the of the of the benefits, the the write off you can get, as a business owner. Okay? So, the subtitle to need money for businesses, it could be right at your fingertips. So this is on pages ten through thirteen in this, spring edition of three-dimensional wealth magazine twenty twenty six. And, the article is four pages and so, you can read in here, how, we have helped many business owning clients, use a property structure max funded IUL, Laser Fund for liquid money to access, to run their business, for working capital, just like I have, my entire life, my sons have. I could tell you dozens of stories of how I have used that money and it it’s actually saved us in some emergency situations and so forth. So the purpose of this video isn’t to tell you what’s what you can read in the article, but to actually to give you a deeper dive into what you’ll read in the article. Because you’ll study the article and understand, wow. So business owners, did it this way and and this way and this way. And then where did they get the money? Well, they they got they got it out of their IUL Laser Fund, but they didn’t withdraw the money. Okay? They understand how money works or business owners. Okay? And so they borrowed from the insurance company and left their money in their laser fund earning, compounding tax free interest at a rate that was usually double the what the insurance company charged to borrow, the money from the insurance company. Does that make sense? If if you’re wondering what what what’s Doug saying, this is how money works. So let me the purpose of this video is to do a little bit deeper dive. So again, IUL, my favorite vehicle, an IUL laser fund is like a financial Swiss army knife and it’s the dream solution for many financial goals. Okay? You get a death benefit that’s coming along for the ride, but you’re eventually, if you fund it correctly, you’re going to, self insure. You’re gonna take your money and it becomes tax free, money under a death benefit because you’re owning the death benefit. And this is explained, on my YouTube channel and so forth. But a lot of people come to us, to set up an IUL laser fund for, retirement planning because it knocks the socks off of traditional IRAs and four zero one k’s. It beats a college, five twenty nine savings plan. Way way better than those. Okay? But working capital is what we’re talking about in this article for business owners. Now also real estate management, emergency funds, lump sum capital transfer, estate planning, pension maximization for skilled teacher and police officers and firefighters and general tax reduction, getting money rolled out of an IRA or four zero one k, get the taxes over and done with and having tax free accumulation and tax free income the rest of your life. Okay? But let’s focus on this one. Okay. So if you read the article and you’re not a business owner, you’ll be thinking, well, now wait a minute. How does this work? I’ve always thought that I was saving money by by hurrying and paying off, debt or interest. And so, sometimes I have to, teach people know how money really works. So, let’s try to be as simple as possible here. A bank, a credit union, an insurance company, these are financial institutions. Okay? Now, they pay you interest when you deposit money into them. Okay? Now, there’s four things you can do with money. You can spend it, lend it, own with it or give it away. Now, when you put your money in a bank or a credit union or insurance company, you’re you’re actually loaning them your money. Did you know that? It’s in a lended position. Now, are they just a benevolent institution paying you interest while they, put your money in a vault? No. No. Most people know that. What what are they doing with your money? Okay. They’re turning around and loaning it back out again or investing it. So they may pay you three or four percent interest, on a CD or on a savings account. Okay. But they’re turning around and they’re loaning that back out again at seven or eight percent. And after overhead costs everything like that, sometimes they only make a, one percent positive spread. This is called an arbitrage. But let me make a statement here. A bank or credit union’s greatest asset is what? Their liabilities, okay. If a bank or credit union or insurance company stopped paying interest, they would wither up and die. They would cease to exist. The only way they thrive is borrowing OPM, other people’s money and paying interest. They don’t view paying interest as the foe. It’s it’s their friend and most business owners understand this. So let me help you understand the math behind this. Okay? Banks, every million dollars of OPM that they borrow from the public, other people’s money. Okay? We loan them a million dollars collectively and deposit into a bank. Let’s say they’re paying us three percent interest, for the year. So the bank, on their balance sheet, they’re gonna pay out thirty thousand in interest on on that money that you loan them. Okay? So they’re very happy to do that. Why? Because they’re gonna turn around and, loan it back out or invest it and if they only earn six percent, they make sixty thousand on that million. Okay? And, they only have to pay thirty. How much more is sixty than thirty? Don’t don’t don’t say just thirty. I I mean, it’s it’s two two times. Okay? It’s a hundred percent more. It’s twice as much. Let me put it this way, would you hire an employee for thirty grand if that employee made you an extra sixty grand? Absolutely. Does it save you money to hurry and fire the employee, get rid of that interest? No. See, a bank would wither up and die if they stopped paying that interest because they’d stop making a hundred percent more than the cost of the funds. So, you can do this. I for for over forty years, on a million dollars on my real estate for example, if I borrow at six percent interest and I borrowed less than that many times. But if I borrow at six percent interest for my business for example or on my real estate, I can tax deduct that. I I’m in a thirty three percent combined federal and state tax bracket. And so, if I write off sixty thousand of interest off of my taxes, I get twenty thousand in actual tax refund or savings back. This is real money. This isn’t paper money. Okay? So a six percent interest tax deductible, loan is only costing me really four percent or forty thousand. You got it? Well, in my IUL Laser Fund where I might have that million dollars, I’m earning eight to ten. Let’s just use eight. Here’s the same question. How much more is eight than four? Don’t say four. It’s a hundred percent more. Okay. The banks are making a hundred percent. I’m making a hundred percent because I’m my own banker. Okay. So, with an IUL Laser Fund and this is, this is the favorite vehicle by far the financial vehicle for my clients and where I put my serious cash to become my own banker. So if I need money, if I have a million dollars in there, I don’t care if you have a hundred thousand, ten thousand, ten million. Okay? If I have a million in there, I could go withdraw that money. It’s my money. But now it would no longer be in the insurance company earning ten percent because I I’ve been averaging eight to ten percent or higher. Okay. Let’s let’s use ten because I’ve actually averaged ten point o seven since nineteen eighty. Now folks, if I withdraw my million, I’m no longer earning ten percent on it. What I just said a moment ago, the insurance company is willing to loan me because they have a million of my money there as collateral. They’re willing to loan me a million. I don’t have to qualify with credit or anything like that. It’s done. I just check a box. I don’t wanna withdraw a million, I I wanna borrow. They loan me a million and, I have a choice. They they can loan me that money maybe at two percent, a very low interest rate, but and then they’ll credit me on the million that collateralize it the same two percent. They charge you two, credit you two, that’s called a zero watch. It doesn’t cost you anything. But but they that makes the IRS happy because the million, is tax free. But that’s not smart because the insurance company says, well, we’ll charge you five percent and we’ll keep crediting you on that million whatever you’re earning. Right? Let’s say it’s ten. So here we go. The insurance company loans me a million and my million that’s collateralizing that stays in the insurance company earning ten. The insurance company is charging me five. How much more is ten than five? Here we go again, it’s a hundred percent more. So let me use a real example here and then I encourage you to read the article in the magazine. Okay. I had a client in two thousand seventeen and, he’s a business owner and he has, money accumulated in his IUL for working capital for business. Okay. And when he needs money for inventory or anything like that, but, he he actually, buys, real estate properties and he he he fixes them up and flips them. He doesn’t like to stay the landlord. He likes to buy, fix up and flip. And so he called me in two thousand seventeen and he said, Doug, I need a million dollars, out of my, IUL Laser Fund, to tie up a seventeen million dollar strip mall that I’m gonna buy and I’m gonna fix up and I’m gonna flip it and make several million. He said, so send me the form. Well, I emailed him the the form. It’s only one page. He puts his name and his policy number, like an account number on there. And it and it and it basically says, would you like to withdraw a million? No. He doesn’t check that box. Would you like to borrow a million? That’s the box he checks. And then it says, do you wanna borrow it to and be credited to? A zero wash loan. No. He’s, he chose that what is called the alternate or index loan. And he said, no, you can charge me five percent on that million. He doesn’t have to write out a check for that. It’s automatically deducted. This is what happened in two thousand seventeen. He borrowed a million and it, they charged him at the end of the year five percent. That’s fifty thousand. He doesn’t have to write out a check for that. It’s deducted automatically from the account. And how much did the account grow? In that one single year, he capped out at twenty five percent. He made two hundred and fifty thousand that year by not withdrawing his money. He left it there earning twenty five. If he had withdrawn it, it it would it it would have earned zero because it’s not there anymore. Instead, he left it in there. He made two hundred fifty thousand minus the fifty. He netted twenty percent on his million or two hundred thousand tax free on his million while he was technically using it to buy, fix up and flip a strip mall and make two or three million bucks on that to boot. Okay. This is how you can become your own banker and use IUL as a working capital account. So, I implore you, read the article and you’ll get to see some ideas there. We did a podcast about this and, on ninety three million. This is pages ten through thirteen and, when you start understanding how money really works, if you’re not a business owner, I would implore you, maybe you ought to consider becoming a business owner. You don’t wanna miss out.