The Power of Two Funds

THE INCOME POWER OF TWO FUNDS

The following excerpt is from Section II, Chapter 3, “Retirement Planning.” (Note, for privacy, names and identifying details have been changed.)

At age 60, Ben Coleman could see retirement just over the horizon, and he decided to open a LASER Fund*. He wanted to move $780,000 into the policy, a combination of money from regular income and funds in a taxable account (where performance was lackluster and taxes took a regular bite). The policy started with a $1,875,000 death benefit.

He had planned on funding the policy over five years, but there were a few delays. Thanks to The LASER Fund’s flexibility, that was not a problem. He ended up fully funding it in six years, and like the Mitchells, Ben will not touch any money in the policy until he retires. He opened the policy strictly for retirement planning and eventual wealth transfer to his children through the income tax-free death benefit. So far, it has earned as much as 17% annual interest, with an average annual rate of return of 7.8%.

A couple years ago, Ben remarried. He opened a second LASER Fund, with a $600,000 bucket (GSP). With retirement income a priority, they chose a policy that does not pay out a death benefit until the second spouse passes on, which reduces costs. He pays $10,000 a month into the policy, and plans to fully fund it in five years. Between the two policies, Ben and his wife will be able to take an annual tax-free income of $150,000 to $200,000 when they retire. For Ben, the ability to earn a predictable rate of return, to know that his money is safe, and to look forward to a robust annual income—free of income taxes—provides a much brighter future than his previous approach. This is a retirement he can really look forward to.

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If you haven’t ordered your complimentary (one per household) copy yet, just go to www.laserfund.com to place your order (all you need to do is pay shipping). Or, feel free to come by our Salt Lake office during regular business hours and pick up your copy.

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The following excerpt is from Section II, Chapter 4, “Working Capital”:

Joe Sherman is a developer, specializing in residential homes and commercial lodging. Since discovering LASER Funds, he has changed his business model. He has seized the opportunity to have policies providing life insurance for him and his wife—and he puts those policies to work providing working capital for his developments.

Over the last few years, he has borrowed money from their policies for several projects. Sometimes it has been for short-term needs, such as borrowing money to secure a lot, and then putting the money right back into his policy thirty days later when his construction loan comes through. Other times, he has borrowed enough to finance an entire construction project, putting the money back into his policies when the build is done and the property sells.

Using this approach, Joe has made an additional $100,000 or more in interest than he would have using the traditional savings account method for working capital. The liquidity and predictable rates of return in his LASER Funds enables Joe to look to continued growth, with the opportunity to make money on both his real estate deals, and his insurance policies.

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The following excerpt is from Section II, Chapter 4, “School, Family & Life”:

The Schooners’ son, James, was preparing for medical school—an endeavor that would cost about $500,000. As James investigated traditional student loans, the family looked at an alternate solution, one that would be far more flexible and that could benefit everyone—son and parents.

Rather than going to the local bank, they decided to turn to their family’s “Legacy Bank,” utilizing money in the Schooners’ LASER Fund to cover medical school costs. They drew up an official contract that allowed James to borrow what he needed from his parents each year, which they in turn borrowed from their LASER Fund at 5% interest, income tax-free.

When James completed medical school, he began paying his parents back in monthly installments, at 7% interest—a rate James insisted on. While his parents were willing to offer the loan at no interest, James wanted to be repay them at a healthy market rate of 7% interest—as his way of thanking them. The Schooners put each monthly payment right back into their LASER Fund, where it is currently contributing to the further growth of their policy’s value.

Originally the Schooners opened their LASER Fund for the death benefit and future retirement income, but they have been thrilled to discover it has so many more uses, including the ability to help their son attend medical school without the hassle, additional costs, and rigidity of traditional student loans.

If you haven’t ordered your complimentary (one per household) copy yet, just go to www.laserfund.com to place your order (all you need to do is pay shipping). Or, feel free to come by our Salt Lake office during regular business hours and pick up your copy.

 

*Life insurance policies are not investments and, accordingly, should not be purchased as an investment.