This is where many banks
invest some of their money. In this
episode,
I'm going to dive into the question
"How safe are insurance companies?"
Well, it's where i put my serious cash
because
of the safety of these institutions. I'm
going to explain
why and how they weathered the great
depression with flying colors.
And this is where many banks, credit
unions even brokerage firms put
a lot of their money for liquidity and
safety. So, get ready.
So, I'm Doug Andrew. I've been a financial
strategist,
retirement planning specialist, a tax
minimization specialist for more than 46
years.
I've authored 11 books so far and my
goal is to write a book every year the
rest of my life.
And I help people optimize their
financial assets and minimize taxes.
After doing this for my own clients,
thousands of clients
throughout America, in 2003 to 2007,
I trained over 3,000 CPAs, tax attorneys
and financial advisors.
In fact, my publisher which was
originally Warner Business Books under
Time Warner, they estimated 50,000
plus advisors were buying my books
in bulk. But sometimes they were
passing them out like loose cannons
tearing out just certain chapters and
then
switching people like baiting people and
then switching them to
to their inferior investments and what
have you.
And so, that's why i let all of my
professional licenses
automatically expire at the end of 2005
to become a consumer advocate. I started
a radio show,
I started writing more and more books. In
fact, at the end of this episode, I'm
going to show you how you can get my
most recent best-selling book.
It retails for 20 bucks. But I will gift
it to you absolutely
free and you can learn more about these
answers that are so critical to this
question in this episode. Well,
our insurance companies safe? How safe
are they? So, are you ready to understand
really why the insurance industry
is not only the backbone of America
but the backbone of the world. This is
where many banks credit unions and
brokerage firms put
their money for liquidity and safety. And
let me give you the history behind it
with the great depression
in 2008. Many people don't realize we
came
so close to a total financial collapse
in America in 2008. And this is why we
look at during those critical
times where was the safest place for
people to have their money.
So, let's go back to the great depression.
Most of the
legal reserve insurance companies... That's
a new term. You're going, "What's that mean?"
A legal reserve insurance company means
that the insurance company has to have
reserves on hand
that are liquid and safe in case of a
major
run on the bank where people panic
and so forth. Most insurance companies
have their general account portfolio,
their billions. And and some of the
companies I put my money
to have trillions of dollars. One company.
They manage
about 3, 3.5 trillion
dollars. Maybe a little bit more than
that now.
That's as much money as the IRS collects
in
income taxes in an entire year.
One insurance company manages that. And
frankly they manage it
maybe with a skyscraper full of
employees. Do you know how many federal
employees it takes to manage 3.5, 4 trillion of our
tax dollars?
I don't even want to go there, okay? But
let's go back to the great depression.
These insurance companies, they have
legal reserves on hand. They diversify.
They put money in triple A and double A
bonds.
They put it on mortgages but only about
50% loan to value on skyscrapers
and shopping malls. They
they protect themselves. If they ever
have to foreclose
on a skyscraper, they come out smelling
like a rose because they don't loan 80
and 90 percent like banks do.
So, during the great depression, that was
clear back as you know in the early
1900's, many of the companies I put my
money into
have been around since the mid-1800's. One
i was just talking about, 1848.
So, they've been around a long time.
During the great depression, they came
through with flying colors.
Do you know in the great depression, some
real estate dropped 80% in value,
banks closed, 40% never
reopened again. Guess how many
legal reserve insurance companies went
under
in the great depression. Zero.
Okay? They came through crediting 2.5,
3, 3.5 percent.
Let's go to the next real bad time, 2008.
In 2008, we were on the brink of
financial collapse in America. 400 banks
went under.
And 900 more were on the brink, on the
watch
list. That's when you get worried because
even
FDIC can go broke. But you know, the
government can raise taxes,
they can print money and so forth and so...
You know, most of the time people feel
pretty safe with their money in a bank
even though FDIC
can be drained of their resources. I like
the multi-trillion dollar insurance
industry because they cross
insure each other. If an insurance
company even comes close to being
insolvent because of a run on the bank
or something, all the other insurance
companies have to adding up. They
pro-rate a share of the business they
have in each
individual state. And it's called cross
insurance. That's why
there's never been a legal
reserve life insurance company. Never
ever, not honor a legitimate claim.
Folks, they're usually purchased by even
another insurance company
if it gets that bad. So, in 2008, the
federal government
asked the 5 major banks in America
to disclose where they had their
tier one assets. That's money they have
to have on hand
liquid and safe in the event of an
emergency, a run on the bank where people
just wanted all their money out of the
bank.
Guess where the banks and credit unions
disclosed 30 to 40 percent of their tier
one assets was invested.
In insurance companies. It's called BOLI,
bank owned life insurance. The major
corporations have it in
COLI, C-O-L-I. Corporate owned life
insurance. That's where I have my
corporate assets.
Why do they do that? Are you ready? Put on
your seat belt, you're going to be blown
away.
Now, if you've got to go and you're
already curious,
I want to give you a free copy of my
most recent bestseller. This is book
number 11.
It's called The Laser Fund: How To
Diversify And Create The Foundation For
A Tax-Free Retirement.
In here, you will learn how safe the
insurance
industry is. But you also have ratings,
you look at comdex scores,
AM best, Standard and Poor's, Duff and
Phelps, Moody's, Weiss all of these
different
rating agencies. But I simplify it and
then subscribe to one that gives a
comdex score. And I would recommend you
put your money in an insurance company
that is rated 90 or higher
on the comdex score. That means they're
in the top 10%.
90% of other insurance companies
are not as safe as that one.
That's where i put my money for safety
as far as safety of the institution.
But i like to have my money that is
protecting my principle that whatever I
put into
the insurance contract, the insurance
policy
is protected from loss and any year that
I make money
it becomes newly protected principle. I
don't want to lose in the future money
I've made in previous years.
That's explained in my book, The Laser
Fund,
it retails for 20 bucks. I will gift it
to you free.
You can claim your free copy by clicking
on the link below.
Go to laserfund.com pay $5.95 shipping
and handling I'll send one out to you
free.
But let me share with you this powerful
concept.
See, banks and credit unions during
the last 20 years have been paying at
low interest rates.
I remember 1% or less
sometimes. So,
here's a banker credit union borrowing
our money at 1%, let's say.
So, there's only 4 things you can do
with money. Spend it, lend it, on with it
or give it away.
When you have money in a bank a credit
union or an insurance company, it's in a
lended position.
Are they just a benevolent institution
paying you interest while it sits in a
vault?
No. What are they doing with your money?
They're loaning it back out again or
investing it. I just showed you
they'll borrow our money at
1%. They'll put it into
BOLI, bank owned life insurance
contracts. Well who's the life insurance
on doesn't matter.
It's the owner of the insurance policy.
They own insurance policies on their
board of directors and people and so
forth.
And I own policies not only on me but my
wife,
my kids, my grandkids and so forth.
Because the owner gets all the tax-free
accumulation and tax-free income. So,
insurance companies borrow our money at
1%
and they earn 5, 6, 7 percent.
Wait a minute, on a million bucks they
pay us
10,000 a year in interest but they're
earning
50,000 a year in interest. How much more
is 50 than
10? Don't say 40. It's 500% more.
Let me say it another way. If
you were an employer, would you hire an
employee for 10,000 that made you an
extra 50,000? Oh, yeah. Would you buy a widget
machine for 10 grand that made you an
extra 50? Yeah, that's called a 500%
return on employment cost or equipment
costs.
You can do this. So, how safe are
insurance companies?
Safe enough that this is where the banks
and credit unions put
their money. In fact, most banks
maybe are only rated triple B by
Standard and Poor's or Moody's or what
have you. They take our money and they
increase the safety
by 6 notches higher to triple A in a
multi-trillion dollar
insurance company, a legal reserve
insurance company.
They increased their safety and their
rate of return by 5
times. If you haven't gotten the epiphany
yet,
you can bypass the middle man with your
long-term savings.
Why would you put your money in a bank
and let them put your money over here
when you can just bypass them and put
your serious cash into those and have
the same liquidity safety and rates of
return
that you're trying to achieve but you're
actually in a safer environment to do it?
So, guess how many legal reserve life
insurance companies went under in 2008?
Zero. They all came through with flying
colors. So, when people ask the question
how safe are they.
Well, that's where i put my serious cash
because they would be the last
domino to fall. If things got really
really
bad, I would probably get a sufficient
notice to get my money out of
my insurance policies. But where would I
put it?
If it's the last domino, if it's the
safest place,
you better be able to grow carrots in
your backyard.
Even gold and silver you can't eat that.
And so, I put my serious
cash in the legal reserve insurance
industry diversified
for the greatest safety. And that's my
take on it.
If you want to learn more about this,
again,
claim your free copy of this 300-page
book. This side
is charts and graphs and explanations.
This side contains 62 actual client
stories
so you can learn by stories and also
by the numbers. Right brain, left brain.
Simply go to laserfund.com, L-A-S-E-R,
laserfund.com or click on the link below. You simply pay $5.95 shipping and
handling
and i'll pay for the book. You pay for
the shipping.
There's also options there to listen and
learn or watch and learn.
And this may be the beginning of an
incredible opportunity
to have the highest amount of safety and
earn predictable rates of return totally
tax free
for you.
