HOW MUCH DOES AN IUL LASER FUND COST?
10%, we’re happy. We’d have to be earning 15% in a tax- deferred account, like an IRA or 401(k), to be able to net 10% after-tax–and after fees we’re only netting 9%. In a properly structured IUL, we only have to earn 10% to net 9%, and personally Doug has done that predictably for 25 years. In “The LASER Fund” book, in Section I, Chapter 10, we also delve into comparisons between IUL LASER Funds and traditional financial vehicles, like a 401(k), and an after-tax account with tax-deferred growth and LIFO distribution, like a brokerage account or a managed money account. And Why You Can’t Afford Not to Have One
We’re often asked what a properly structured, maximum-funded Indexed Universal Life policy ( or what we like to call an IUL LASER Fund) will cost.
Like most financial vehicles, IUL LASER Funds do incur expenses. Your policy costs will include premium charges, admin fees, expense charges, and cost of insurance. You might have heard that IUL LASER Funds are too expensive to use as a capital accumulation tool. But this is one of the biggest misperceptions. Many uninformed financial professionals repeat this “insurance is too expensive” myth, without stopping to really understand and compare the costs. They often point to the first few years of an IUL LASER Fund, when the costs are higher than many other financial vehicles during that time frame. But as we illustrate in our book, “The LASER Fund,” in Section I, Chapter 10, IUL LASER Funds are a long-term financial vehicle, and when you treat them as such (properly structuring and funding your IUL policy over time), they can yield cost-effective results. Once you get into years 3 to 6, the IUL LASER Fund often begins to pay for itself. In the long run, it’s among the least expensive vehicles, with an average of 1% to 2% in policy charges. IUL LASER Funds have earned historical average returns of 5% to 10%. So let’s say this year your policy earns 10% and your charges are around 1%; if this is the case, then that means you are netting 9%. Returns can even be higher in some years; we have clients who earned 16% and then netted 15%. Essentially, that one percentage point is paying for all the fees AND the insurance (which can grow tax-free and pass along to your heirs income-tax-free). To us, that’s not a cost. That’s an opportunity.
You might find that comparison helpful, to see illustrations of how fees and taxes impact the performance of each vehicle over time.
When it comes to the benefits of tax-free growth, tax- free access to income, AND income-tax-free transfer of wealth to your heirs … the way we see it, the cost of your IUL policy is paying for itself. So again, it’s not a matter of “What does it cost?” It’s all about “What does it make you?”
Find out how to combat rising taxes and inflation. Order your free copy of the best-selling book “The IUL LASER Fund ” today.
Because of IUL LASER Funds’ superior tax advantages, if we’re earning 11% in a given year and netting
385-257-2577 7
Made with FlippingBook Ebook Creator