How a Max Funded IUL is Better than a 529 College Savings Plan

A max-funded IUL is far more flexible to save for college funding tax-free. In this episode, I'm going to address the question how a max-funded IUL is far better than a 529 college savings plan for your kids and grandkids. So, I'm Doug Andrew and I've been helping many, many thousands of people accumulate their money tax-free for long-term goals like retirement but not just retirement. Other financial goals like college funding for your children or grandchildren. So, I'm going to share with you why I've never owned a 529 plan. I never will. Why would I when I can max fund an IUL insurance contract and have all the benefits of a 529 plan and a whole lot more? So, let me explain why. There's a lot of other episodes on this educational channel that you can check out on what my favorite financial instrument is to accumulate money tax-free, not just tax-deferred, and then be able to access money anytime totally income tax-free. And then when you ultimately die, anything that is in there, it blossoms and increases in value and transfers income tax-free. There's nothing else that does that in the Internal Revenue Code under Section 72E, 7702, and 101A that have been in the Internal Revenue Code in one form or another for over 108 years. So, I've been saying max-funded IUL. Unfortunately, over 99% of IUL policies sold in America are not structured correctly or funded properly to pass what I call the laser test. LASER is like an acronym. It stands for Liquidity, Safety, Rate of Return, Predictable Rates of Return, and I prefer Tax-Free. That's icing on the cake. And so, therefore, a lot of IUL policies cannot perform optimally as good as they could where you earn an average of 11 and net 10. If you earn 9, you net 8. If you earn 16 one year, you'll be netting 15. If you earn 25, you'll net 24. It's sad when I see people not achieving the greatest internal rate of return. So, I've written several books about it. And at the end of this episode, if you stay with me, I want to gift you a free copy. But as I'm talking here, if you can think of somebody that would benefit from this, be sure and share. Post a comment, click like. But most importantly, subscribe to this Three-Dimensional Wealth channel. It's free. And when you do, click on that little bell so you'll be notified every single time I post a new educational episode, which I do almost on a daily basis, okay? But stay with me to the end. I want to gift you a copy of my most recent 300-page bestselling book called The Laser Fund. So, let's get back to this 529 college savings plan. Now, my wife and I, we have six children. They're all adults now. And we didn't pay for their college education. They actually had to have skin in the game. We didn't ever lead any of them to believe that we would just pay for their college. I've never believed in that. We gave them equal opportunities, not equal distribution. Oh, okay, we'll just pay for your college. In other words, they had to study, work hard. And if they got a scholarship, we might match their scholarship. If they needed help, they might borrow from the family bank instead of a student loan. And then they had to pay the loan back with a nominal interest rate once they graduated and start earning money. Or if they couldn't pay back with money, they would work, they would paint, they would shampoo carpets, whatever. They took ownership in their education. Why? Well, when I went to college, I came from a family of six, as did my wife. Our parents couldn't afford to pay for our college. We didn't expect them to. And so, I got all kinds of scholarships and I worked at Kentucky Fried Chicken 30 hours a week in college. My wife worked at a bookstore about 30 hours a week. Frankly, we had better study habits than most of our friends, many of which whose parents were just shelling it out. They goofed off. They didn't have any skin in the game. So, when we got married, we didn't want our children to just think we were just going to pay for their college. We gave them equal opportunities. So, again, if they got a scholarship, we might match it. If they wanted to borrow and they could borrow for a student loan, but it was a nominal interest rate, they would pay the loan back. If they couldn't pay the loan back when they went out and started making money in their occupation or their vocation, then they could work it off mowing lawns or painting or shampooing carpet or whatever. It wasn't just a handout. We wanted to give them a hand up, not a handout. And so, they actually graduated and they learned by working their way through college and appreciating their education. They were way ahead a lot of their peers that their parents were just shelling it out, okay? But what did we do with the money that we had in our family bank to loan them or to match the scholarships or what have you? We put it in a max-funded IUL or several IUL policies because the money accumulated tax-free And they could access it. We could access the money totally income tax-free. We're immune from taxes. Inflation helped us instead of hindered us. And it was immune from market volatility. And if I happened to die, if I would have died, if I had, you know, 50,000 or 100,000 in there, it would have blossomed to a half a million or a million tax-free. And it would have taken care of the same needs for my six children had I not stayed around. If you save in a 529 plan, it doesn't self-complete if you die. If you die, it's just gone. I mean, the money is whatever it is in there when you die. It doesn't blossom. And so, I often go, why would you even participate in a 529 plan? See, if you put money into a government 529 plan, what are the disadvantages? Well, the money you put in a 529 plan is tax-free only. if it's used for college funding. Now, you wouldn't believe how many times parents have come and they put it into a 529 plan and then their child got scholarships. They didn't need it. And then the child graduates and goes out and wants to start a business or buy a home. Now, they take the money out of a 529 plan and they have to pay tax because it wasn't used for college. Yeah, under the Laser Fund and IUL policy, you don't have to use the money for college even though you sort of earmarked it for that. You can use it for the purchase of a first home. You can use it to start a business. It's always tax-free. Why would you put parameters around a 529 plan that it's only tax-free if you use it the way the government says you have to use it? To me, why do I want those restrictions, okay? A 529 plan is not self-completing if you die, like I said. If I died, anything in the savings account with the IUL policy would blossom. If I put in the first $10,000 and I died, it would leave behind $1,250,000 under the one that I set up, totally tax-free. It would have funded all six of our kids' college education if they needed to borrow or match their scholarships if I didn't stay around. 529 plans do not self-complete if you die, okay? A laser fund is totally tax-free at any time. You don't have to use it for college. You can put money in. I have put money like 50,000 or 100,000 in and four days later pulled out 40,000. I had a client put in 200,000 and said, I won't touch that for 20 years. She got in an accident the next month and she needed 120,000 of the 200,000. She got the money within 48 hours, totally tax-free. It didn't trigger penalties or anything like that, like a 401k. A laser fund does not restrict the contributions. You can only put in a certain dollar amount or a certain percent of your income into a qualified plan. In a laser fund, I can put in $100,000. I can design it to accommodate $300,000. I don't have to put that much in. I can put in $30,000. I can make up the other 270,000 anytime I want. If you don't use the room in a given tax year for a qualified plan, you lose it forever. Why would you want all those strings attached or those restrictions? Is this making sense? So you can access money out of a laser fund and IUL policy anytime for any reason. It doesn't have to be for college, but that's my preferred vehicle that will knock the socks off of a 529 college savings plan. In fact, most savvy advisors who help people with savings accounts for college funding, they advertise that they can help you with a 529 plan, but the smart ones They will show you why a max-funded IUL is way better than using a 529 plan for the reasons that I've explained and many more. So, if this is intriguing you, I actually have some stories in my most recent best-selling book called The Laser Fund that explain why this is better than a 529. And you'll read them in here. I want to gift you a copy of this. Now, how can you claim your free copy? This isn't about selling you a book. I'm going to pay for the book. You simply go to laserfund.com. What's a laser fund? It's a properly structured, maximum funded, indexed universal life policy that you can use for tax-free accumulation and access for all kinds of goals like retirement, college funding, working capital for business, emergency funds, and so forth. And so it's like a financial Swiss army knife. It's the dream solution for all kinds of goals. Now, this is a 300-page book. It's actually two books in one. This side is about 200 pages comprised of 14 chapters with all kinds of charts and graphs if you're a left-brain learner. If you learn more by right brain stories, examples, metaphors, you flip it over and read this one. This is 12 chapters with 62 actual client stories. One chapter is totally dedicated to how to structure an IUL policy that will knock the socks off of a 529 plan, okay? If you want to use your whole brain, right and left brain, read the entire book, okay? Here's how you can claim your free copy. You simply go to laserfund.com, L-A-S-E-R fund.com. Click on the link below. You contribute a nominal amount towards the shipping and handling. Just like we didn't pay for our kids' college education, you have to have some skin in the game. You contribute towards the shipping and handling. I'll cover the rest of that. I will pay for the book. I'll fire out a hard copy to you. There's also options there if you'd rather listen and learn or watch and learn. There's even an 18-hour master class. There's also webinars that we teach on a regular basis. Check those out. And if you want to meet with an advisor who understands how to help you implement this correctly, be sure and indicate you want to meet and talk with an advisor that can help you do it right. Because unfortunately, a lot of advisors out there have no clue how to to structure one of these correctly. So, this is about you and your brighter future.