Josh: Hey, guys, welcome back to Accelerated Real Estate investor. This is Josh. And today, I’m very excited to be back with you. And another episode of Accelerated. That’s I hope you’ve been enjoying it. If you are, please share. Share. Help us build the community. Don’t forget to join our Facebook group. And also, don’t forget to share this on Instagram and YouTube and and Facebook and Twitter and just tell everybody about these accelerated real estate investor podcasts so that we can build a community and help each other. Today, I’m interviewing a relatively new friend of mine. His name is Tom Laune. He is the CEO of Stress Free Planning, and he is able to help many high profile self-employed clients in various industries find financial security through various insurance products. As a former financial advisor, I found my relationship with Tom to be something that you’ll benefit from. Tom has created something which what he calls the bullet proof wealth strategy to help real estate investors protect their income and to grow their wealth by taking advantage of two main core programs. First of all is what we call disability income benefits. And secondly is what’s called an overstuffed or overfunded whole life insurance policy. I believe in both of these very much. I own both. I use both as part of my own wealth accumulation strategy. And Tom is an expert at this. Reminds me a lot of some of the stuff I used to do in my early twenties with high net worth clients. So I had a blast interviewing Tom. I really hope you enjoy it. Take a listen to this Accelerated Real Estate Investor interview with Tom Laune discussing the bulletproof wealth strategy.
Welcome to the Accelerated Investor podcast with Josh Cantwell. If you’re looking to retire early with forever passive income, you’re in the right place. This podcast is the go-to destination for real estate investors, both active and passive. And multifamily apartment investors, both new, intermediate and advanced. Now sit back, listen, learn and accelerate your business, your life and your investing with the Accelerated Investor podcast.
Josh: So, hey, guys, welcome back to Accelerated Investor, and I am really excited because I’ve just been joined by Tom Laune. Tom, thanks so much for joining us today on Accelerated Investor. But looking forward to this. I’m a former financial advisor. It’s how I got my education in finances and real estate. You’re a phenomenal financial planner and advisor and I was looking for this interview for a long time. Thanks for joining me today on Accelerated Investor.
Tom: Josh, thank you so much for having me. I’m excited to add value to your group. I’m really looking forward to it.
Josh: Yeah. So for my audience, so all of you that are investing in real estate, both residential and commercial. You know, I like to have guests that can add value to your practice, but not necessarily learn another real estate strategy or another way to optimize your multifamily properties. What you need to be doing is also diversifying your income, diversifying your investments. So that’s what we’re going to talk today about with Tom. So, Tom, you’re the CEO of Stressfree Planning. You’ve created this strategy, this kind of concept called bulletproof wealth. When you think about bulletproof wealth and you’re talking to a client, like talk to me like maybe I am a client. What is bulletproof? What’s the philosophy that you use to help your clients be better investors and really protect themselves?
Tom: So, Josh, that’s an awesome question. The question I would ask you is, where are you saving money now? So my clients love to save money in a bank account. And I think you might think, why would anybody want to save money in a bank account? It’s a terrible place to put money. Well, it has a one huge advantage, and that is liquidity. You can get access to that money when a deal comes along. And that is the thing that most real estate investors need, is to be positioned to take advantage of a great deal when it comes along right. But it doesn’t have any other advantages. There’s no there’s no other advantages to saving money in a checking or savings account. So that is why I created this strategy to really figure out how to help real estate investors position their capital to where it’s doing something for them if they don’t have a deal right now. But when a deal comes along, they’re able to jump on it. So it’s a line of credit. The primary element of it is a line of credit that is inside of a specially designed life insurance policy that grows and grows and grows every year.
Tom: And it allows people to have access to it, like in five to seven days, five days by wire, seven days by check if you need it and you have guaranteed access to it. That’s the core of what it is. And here’s the beauty of it, is, is that you’re not taking your money out of this line of credit. It’s a collateralized. So what you’re doing is you’re borrowing against the line of credit and your money is still compounding and growing inside of this vehicle. And you’re able to also have it in the investment that you want of your choice. So there is no risk inside of what I’m doing. The risk is in whatever investment that you are doing. Does that make sense, Josh? So a couple of reasons that it’s bulletproof is that I love to talk about disability insurance, and that’s because that’s the reason I got into this job. And there’s an element to my strategy that if you can’t work for whatever reason through a disability, then the required amount to keep the thing going is paid for you. It’s a thing called a disability waiver of premium, and I build that into everything that I do. So that’s kind of the core of it. There’s a lot more nuance to it. But the reality is, is that it is figuring out how to position your money so that you can understand how to make money like banks make money.
Josh: Yeah. So let’s talk about money. Let’s talk about this for a second, because banks take money in on deposit. They pay correct through money market savings and CDs of paltry paltry half a percent, one percent, two percent, if you’re lucky. And then banks lend that money back out. And of course, there’s what’s known as fractional reserve banking. So they get that multiple times over. And so what we’re trying to do with your strategy is essentially not have to put our money in the bank and have the bank make money, but to allow ourselves to kind of create our own concept within a very tax advantaged situation. So how does this compare to and how do you compare and contrast this to what banks do with how they make money versus how we can do this for ourselves?
Tom: That’s a great question. OK, so here’s what it is when you go. Let’s just pretend, Josh, that you went to a bank. With a little bag in that bag had one hundred thousand dollars of cash in it. When you deposit that money with a bank, the bank would consider that a liability. Most people get that backwards and they think, oh, that’s an asset to the bank because now they’ve got this money. The reality is that’s a liability because like you just said, they have to turn around and pay an interest on that. Now, that interest is terrible. I mean, really low. Like a lot of times it’s less than a quarter of a point. And if you look at the taxation on that interest, that is taxed as ordinary income. So not only is it low, but it’s also taxed as well. So if you put in one hundred thousand dollars and you got a quarter of a percent on that money rate of return after one year, that would be two hundred and fifty dollars that would then be taxed at your ordinary income. Is that a mind blower?
Josh: That’s a mindblower. So like a hundred thousand. I’m used to talking to my investors about like a total return between preferred returns, cash out, refi proceeds, cash flow and equity of like 20 to 30 to 40 percent in some deals. For me to think like twenty, twenty-five basis points. Point two five percent. It’s $250 bucks.
Tom: That’s right. 250 bucks. So this is what happens. So then you deposit that hundred thousand dollars with the bank, they pay you two hundred and fifty dollars for the use of your money. Now when they get an asset is when along comes a lender who wants to borrow that money from the bank. Now what is the bank going to charge on that money they’re going to charge? I don’t know, depending on your credit rating could be like let’s just say it’s five and a quarter percent for the use of that hundred thousand dollars. Now, when you see a bank paying out twenty-five basis points for the use of the money and you see them getting five and a quarter percent, really what’s happening behind the scenes is on a rate of return basis. Most people look at that and they go, well, they’re paying a quarter, they’re making five and a quarter. That must be five percent rate of return. Right. But that is not the way it works at all with a traditional bank. What they’re really doing is they’re paying two hundred fifty dollars and making five thousand two hundred fifty dollars, which is a 20x multiple on their return, which means that their actual rate of return when you run it through a financial calculator is two thousand percent, three percent.
Josh: It wasn’t any of their money. It was the money that their client put on deposit with them. Phenomenal. Exactly. Phenomenal to be a bank. So how does we become the bank?
Tom: So, yeah, exactly. So I try to teach people, number one, how banks make money because they kind of their mind is blown a little bit when the scales fall off and they realize that banks aren’t nickel and diming here. That’s why they have the biggest buildings. That’s why they have fountains in front of their buildings. That’s why there’s 10 people in every bank sitting around doing essentially nothing but watching daytime TV with volume all the way down. And that’s why they give you like a dumdum when you walk out the door to I’m telling you, it is unbelievable just to understand that one thing. So how do you get in the position of being the bank is you’ve got to start saving your money in a place that you can lend it out to yourself or anyone else. I do private lending myself, so I love to find deals where I am earning a higher rate of return than I am paying for the use of the money, just like a bank does. You’re arbitraging it exactly, Josh. So the way that I try to structure deals is that, for example, for private lending, I look for three points origination fee and one point a month.
Tom: OK, so that is an average rate of return of 15 percent. So if I am paying an insurance company five percent, for example, for the use of their money and then I’m making 15 percent, let’s just put numbers to it on one hundred thousand dollars, that would be me paying the insurance company five grand, right? Five percent and me making fifteen thousand dollars. So if I’m paying the insurance company five and I’m making fifteen on the deal, then that would be an awesome deal because what is the rate of return on that. That’s a doubling of my money. A two X, so that’s a two hundred percent rate of return. OK, and that’s the position that I want all of my clients to be in, is to be able to make two, three hundred percent rates of return by using OPM. In this case, the other people’s money is the insurance company’s money instead of using their own money. Now, oh, by the way, the money inside your policy gets a dividend every year and it is compounding and growing inside there every year and giving you a larger amount of collateralized access every policy anniversary when you make another deposit to it. Does that make sense? So that’s not even factored into the rate of return.
Josh: So I bought into this concept, I started doing financial planning when I was twenty one, I got my serious six sixty three, sixty sixty six life and health license started just basically selling whole life insurance. And now the market’s changed. I’ve been out of the market since two thousand and five. And life insurance companies, although they’re kind of slow, stodgy, they’ve got lots of money, they’re institutional investors and commercial deals, but they innovate. Right. They create new products.
Josh: So talk to me about what’s out there now, because many people think, well, if I that’s in the market, I’m going to buy a mutual fund and there’s something called a variable life or variable. Whole life policies, variable universal life policies. How is this different than just buying a whole life policy? Right. Because there’s some question of vehicle that you’re using for a financial reason, not just to, quote unquote insure your life in case you die. Your spouse, your kids, your loved ones have money to bury you and have money to pay their expenses. You’re really taking this from a whole different perspective, which is using it as a financial tool to get money on your side of the table, to get advantage on your side of the table. And a life insurance just happens to be the strategy. Just happens to be the vehicle that allows you to do that. So help everybody understand the difference between just buying insurance from an insurance salesman versus infinite banking and really doing this for the financial reason, not necessarily just buying this for, quote unquote, life insurance.
Tom: That’s OK. I love that question. So the reality is, is that there’s five hundred and twelve ways to mess up the implementation of this strategy. And what you’re what you’re attempting to do is you’re attempting to gain the maximum tax advantages because there’s huge tax advantages with life insurance if it’s properly structured. But still you’re getting the maximum tax advantages and you’re putting in as much money as humanly possible for the least amount of life insurance. So you’re maxing out the contributions for the least amount of face value or death benefit. So what that means is that like a term insurance policy, what you’re essentially doing is putting the very lowest amount of premium dollars in for the highest amount of potential death benefit. But oh, by the way, ninety-nine point something percent of the time, they never pay out because there’s a very low risk on the insurance company because they don’t sell those to people who they think they’re going to pass away during that term.
Josh: They don’t gamble. Insurance companies that gamble. If you saw the departments, the floors of actuaries running numbers, they don’t insure people who are going to die. They insure people the very low risk, very low mortality risk.
Tom: So exactly. So there’s a bunch of stuff that you throw out there. But you mentioned variable, universal life, indexed universal life. And those variants of universal life are really an attempt to combine life insurance with an investment like return. All right. But you’re also taking risk, right? You’re either with variable. You are literally putting it into a mutual fund loaded on top of an insurance policy. And with indexed you’re mimicking an index like a point to point on the S&P. Five hundred or something of that nature. And usually there’s caps and floors and they keep adjusting them every year. And there’s a lot of associated risk with having all of your money earning zero returns. OK, so the way that I help real estate investors understand this is would it feel good if you bought an apartment complex and every tenant decide to pay you zero for a whole year? I mean, you would be it would be like, what the heck is going on here? This is not going to work. That’s an indexed universal life policy at a zero floor. So what I’m doing is I’m combining life insurance with a place to save money. So it’s like life insurance and a savings account instead of life insurance and a risk based asset together, because the risk that you’re taking is what you choose to put the money into.
Tom: So the way that I do this and this is totally different than the standard whole life insurance policy, is that we use a vehicle called paid up additions. And those paid-up additions essentially allow you to over fund your policy and put in extra money, especially at the beginning. And then you can overfund every year after that as well. But the first year you have the option to put in an additional lump sum without causing it to be a modified endowment contract. And that’s where you lose your tax advantages if it becomes what they call a MEC anyway. So the way that I structure these is, hey, let’s put in as much money as possible that. You have access to as much on a percentage basis as possible that you put in and then you, after 30 days, have this line of credit established that you can then collateralize take that money and put it into whatever investment vehicle you want and still have your money growing inside the life insurance policy.
Josh: That makes sense. Absolutely. So, Tom, it’s interesting. I remember meeting with back when I was a financial planner advisor, I had capital under management, assets that I manage that were in the market, managed accounts. And I sold exactly what you’re talking about. And I remember thinking a few years ago, I’ve been out of the industry now for 15 years, but I still have my policy that I set up for myself, which is exactly what you’re talking about. So I’m proud doing this at a very young age, but I still think back about some of my clients. It’s been 15 years. A lot of them I’ve lost touch with. But I hope any time somebody asks me, I have insurance. Should I keep it? The answer answer’s always absolutely yes. Or somebody says, I have met with a life insurance guy. He wants me to buy this overfunded life policy thing is just what do you think about this? Absolutely. Do it. I remember having a client who passed away and the wife inherited a big chunk of money from his and his policy. And she said to me. Well, Josh, what should I do with this? It’s like four or five hundred thousand dollars, what should I do with it? I said what you should do for sure is over fund a life insurance policy for your 20-year-old son.
Josh: And she said, what? What do you mean, why would I buy insurance on my 20-year-old? And I explained to her exactly what you’re telling our audience. And I still think about her often. And I hope that she kept that policy and kept funding it the way she was supposed to. She worked with the adviser that took over my account and started doing that, because now that young guy would be probably in his late 30s and he would have this vehicle set. And oh, by the way, because the policy was bought at such a young age, his cost of insurance was so low that this is a vehicle, an amazing opportunity to do exactly what you’re talking about. And if you don’t tax free income, you can borrow from it the rest of his life, super low cost of insurance. And so I want to tell my followers and subscribers and everybody listens to this, my students like, you need to diversify out of real estate. I’m not saying go to buy the stock market. It’s a little bit of a gamble. I’m not a big fan, but like this type of insurance is something not only is there a death benefit, not only is it going to give your family some flexibility if you did pass away, if immediate cash, then you could sort out all your real estate investments after you’re gone because real estate is not super liquid. But to take dollars, I’ve got one guy, Tom, who every year is like, Josh, I need two hundred thousand dollars out of my investments with you in real estate because I got to put the money back in my life insurance policy for a week and then I got to pull the money right back out.
Josh: And I’m like, his name is Larry. Larry, fantastic. I know what he’s doing. I love it. He’s doing a fantastic job. Sohelp me understand, Tom, like, if somebody were to start doing this in their 30s or 40s and they do it for, you know, they overfunded it for a number of years, let’s say five, seven years to over fund it. Conceptually, what does that thing look like, what options does it give them, what benefit does it give them not only now, but then when they are retired, when they are closer to mortality? Right. Because it’s the tool that has different uses, like today, it might have a use for tax benefits, tax savings and a pull money out. Let loan the money to yourself to a real estate deal. Then as you get older, retired, you’re not as an active as a real estate investor, but it’s got these tax benefits. Eventually, you don’t have to put any money into it. Just talk to some of those benefits as well.
Tom: So the way that I describe that is that you’re going up the mountain. That means you’re in an accumulation phase. You’re accumulating assets, you’re accumulating real estate investments, stocks, bonds, mutual funds. But very few people know how to get back down the mountain or safely get money back out of those things. There’s never a plan for that. And there’s very few advisors that specialize in that. And the reason is, is because there’s not any money in getting safely back down the mountain. There’s all the money is in the rap fees,the AUM fees, all of the fees that you can charge to be able to manage other people’s money. So my investor not investor, but my clients are not, I never use the I word for what I do. It’s not an investment at all. It is life insurance. But it what it does is it positions your money to where when you get to retirement, we shut off all premium payments through the use of a concept called a reduced paid-up election, which is one of the things that you can do. And what that does is it stops any new premiums from going in.
Tom: No more can come in and the cash inside there, the cash value keeps growing and producing dividends and it provides a tax-free retirement income when you do it properly. So for compliance reasons, I have to say tax advantaged. But in reality, what happens is let’s just say you’re thirty-five-year-old, had a million five at retirement and it was in his cash value. What we would do is let’s say he had put in six hundred thousand. That was his basis in his cumulative premium outlay over the last thirty-two years. Now he’s sixty-eight, he’s put in six hundred thousand but he has one point five million. So what we do is we annuities the basis coming out first on an annual basis, and then once we hit basis we switch to collateralized loans that just keep accruing and accruing and accruing. And guess what, Josh? They never get paid back ever, because the life insurance company is guaranteeing a death benefit.
Tom: And what they do if you end up with, let’s say, a seven-million-dollar death benefit with five million dollars of accrued loans at age 90, then what you’re going to end up with is your beneficiary would get two million dollars because the insurance company pays back their loans first and then they give the difference to the beneficiary. And it’s just genius the way it works.
Josh: I love that. I love that. So I’m super familiar with all of this, and it brings back great memories of all my time in that industry and the people that I met and the clients that I had. But let me just put this back to all of our our listeners so they understand. So when Tom is talking about you get to the point of retirement, nobody knows how to climb back down the mountain. How do you spend your money without outliving your money now? Exactly. Everybody has massive portfolios of real estate. That cash flow is never going to outlive it. But what Tom just talked about was the premiums that went in. As long as they’re the first thing to come out, that’s principal. So it’s not taxable because you’re pulling it back out first, then over and above that 600 thousand is your borrowing, your profit or your gain, if you will. You’re borrowing that. That’s not taxable. Then when you pass away, those loans are paid off through the death benefit, the remaining death benefit, the difference between the five million in loans and the seven million of value your heirs get the additional two million also tax free.
Tom: Correct. It’s just like unbelievable the way that this works. Josh, I’m so I get so passionate about it because there’s nothing that works like this. So the closest thing in the financial world that is similar to this would be a tax free muni bond portfolio. So you’ve got a municipal bond portfolio that is guaranteed so you can get guaranteed muni bonds that have a tax free growth to them and then you add collateralize that and use a margin loan on that. But it would not have the disability waiver and it wouldn’t have a death benefit. But that is the most similar thing to what I’m doing that I’ve ever been able to come up with. But in general, there’s nothing that works like this.
Josh: Yeah, Tom is there a time or an age, in your opinion, where somebody might be too young or too old to have this work for us?
Tom: So great question. So, Josh, here’s how it works. When people are in their early 20s, for example, their cost of insurance is super low, but they’re usually never making a lot of money. And the amount of insurance that you can qualify for is based on only two variables. It’s based on your age and your income because they give you a what’s called a four percent income. Replacement ratio is in general how life insurance works. And that means that if you are making one hundred thousand dollars and you were to pass away, how big of a check would you have to give to your beneficiary for them to be able to replace your income earning a four percent rate of return?
Tom: OK, I know that sounds complicated, but it’s really not so. In other words, two million dollars of face value would provide an eighty thousand dollar return at four percent. Basically, it is for every million it’s forty thousand dollars of income replacement. So the thing about it is young people in general don’t qualify to buy very much life insurance in their early 20s. So the ultimate time to do this is in their late 20s when they’re starting to hit their stride and earn some good money and they’re still super healthy and they’re making good money and they can just sock it away. I will say, man, there’s so few people that are in their late twenties that have the foresight to do this, though. I mean, I do have some clients in their late 20s, but, man, most of my clients average between 40 and I would say fifty seven to late fifties is where I kind of live is the forty to fifty eight fifty nine year old. Because the other end of the spectrum, once you get into your 60s, the cost of insurance becomes so high that and you have such a limited window to fund it that it just really the compound growth inside of it is more of a challenge to make the numbers work.
Josh: So clients, I’m assuming those people in their forties to mid-50s, their kind of peak earning years, they’re also doing a lot of financial planning for college, private high school retirement. They’re thinking about these things. It’s important to them. You know, maybe their cost of insurance is a little bit more. Some of those people, like a lot of my friends, have experienced some sort of now medical issue where their cost of insurance might go up a little bit. However, in the long term, if you’re looking at buying something like this in your mid-forties and still living to let’s say you’re 90, it’s still a forty-five-year window to have a vehicle like this benefit you and your family and your bills totaling phenomenal. Some of my most successful passive real estate investor clients who invest passively with me are doing this exact thing with a big part of their portfolio, some of the smartest guys I know have massive, massive, overfunded life insurance policies. Great, great stuff.
Josh: So as we kind of round thirdhand head for home here, you’ve been a successful entrepreneur. You’ve done lots of amazing things. Your bio is amazing people that don’t know. Tom used to be in the music industry and was a recording engineer, actually had an accident where he lost some of his hearing, had to get out of that. But worked with some amazing bands, REM, Bruce Springsteen, Amy Grant, just amazing, amazing stuff. He’s been around a lot of successful people time. You’ve had a couple of different successful careers. So I just ask you kind of last and final question just around advice, right. Advice about being an entrepreneur or advice about being successful. What do you think are some of the things that you see in your clients or in yourself or in some of the bands that you’ve worked with? What are some of the keys to being successful? What do you think are some of the things that stand out, the things that you’ve witnessed or the things that you’ve done in your own personal life that kind of create an environment for success?
Tom: I love that question. So the main thing I would say, and this is what I’ve seen, and I literally have several hundreds and hundreds and hundreds of clients that I see who is the most successful and who isn’t. So I get a really wide perspective here on this. And the people, in my opinion, the most successful are people who take the risk and join some sort of a mentoring club of some sort where there are around people that are doing what they want to do at a higher level than they’re doing it at. So if you can surround yourself with a mentor and really be able to focus your energy on, hey, I’m going to humble myself, I don’t have it all figured out. I’m going to be willing to learn and know that I don’t even know what I don’t know and join some sort of either. Like I’ve been around a lot of multifamily investor mentor groups that are just amazing and single-family self-storage, mobile home parks. There’s private lending, mentoring groups. There’s note investing mentor groups. There’s just like all of these different things. You want to get in with people who know what they’re doing. That would be my biggest advice if I had to go back and start over again. Honestly, that is how I ended up being really successful in the music business, tying it back into that.
Tom: Josh, is that back when I was doing this was in the I graduated high school in eighty-three and I started out as a professional in the music industry around eighty-nine when I got out of college or eighties, maybe eighty eight, and I did something that was very unique and that is that I got to be an assistant engineer on some really high end world class records. I don’t know. I don’t know if you’ve ever heard of ZZ Top. Do you know that band. So. So when I started at Ardent Recordings in the eighties, ZZ Top was recording Eliminator. So I got to be friends with the band and I got to just be around when these people were really doing the behind the scenes crafting of what was going on. And I remember I’ll never forget this as a young wannabe engineer walking into recordings, ZZ Tops, Eliminator record and seeing all these tiny teeny little guitar amps. I mean, they were this big and I’m thinking, what in the heck is going on here? Because their guitar sounds are just legendary, amazing guitar sounds.
Tom: But their producer had figured out that the best guitar sounds come from these little batik, rare one off amps that would be like forties, fifties, sixties, early fender models that were just even Sears created an amp that had like five watts. And that throughout my whole recording career of twenty-nine years is the one that I’ve stayed with the whole time. And I learned that I never would have figured that out in a zillion years, but I learned that by walking in on that session and I ended up getting to work with Joe Walsh extensively from the Eagles and really had a great relationship with him. And I learned some really unique things about how he crafts his tone. It’s so funny, man, because he has like this alter ego where he pretends to the world like he’s just a stoned, drunk guy. Right. But in reality, he’s sharp as a tack. And he that is a persona like he could not have the longevity he has or have the chops he has, if he couldn’t turn that off and get down to business, right.
Tom: So I learned a lot of stuff from him as well. So anyways, I would say get around people who know what they’re doing and literally go back to my strategy. Do not call your local state farm agent and say, hey, I heard about this strategy and I really want a whole life policy. I have clients that are State Farm agents. OK, if that tells you what’s going on behind the scenes, they have no ability or clue how to do this. And they can’t do it because only a few select companies really have the design parameters to allow my strategy to really work to its fullest capacity.
Josh: So, Tom, before we let you go, I’m sure there’s a bunch of our listeners, students, audience that’s going to want to learn more about the strategy, get in touch with you directly, start studying this kind of investment strategies up, working to get more information and how can they reach you?
Tom: Great question. Josh, all you need to do is go to stressfreeplanning.com, stressfreeplanning.com, and you put your name and email address in there and then immediately you will get access to a bunch of free video education so you can add on a very low-pressure way without having any stress, without having me bug you. You can learn the strategy and then there’s a place there to book a time to talk with me in that in that video page if you want. I also am running like webinars very frequently as well. So if you want to do that, you can sign up for a webinar at stressfreeplanning.com as well.
Josh: Yeah, fantastic stuff, Tom. Listen, I really enjoyed getting to know you and having this interview. Thank you so much for joining us today on Accelerated Investor.
Tom: Thanks, Josh. I appreciate it. Take care.
Josh: So great, I really hope you enjoyed that interview. I’m so excited that you’ve been listening to the accelerated real estate investor podcast. Don’t forget to subscribe whether it’s on iTunes or YouTube or wherever you catch your podcast episodes. Don’t forget to hit the subscribe button so that you’d never, ever miss another episode as soon as it’s released. Also, do me a favor. I would be so grateful if you would go back into the social networks, go back into iTunes and YouTube and leave us a five star rating and a five star review. Help us share the word. Tell us some feedback, give me a review and let me know how we’re doing. I’m always looking to improve the show and I really look forward to hearing your feedback so we can make it even better and better as we build this community. Also, don’t forget to go into Facebook and search for the accelerated real estate investor group. It’s absolutely free to join. Go ahead and jump in and join that group. Now it’s absolutely free. You get free training and free information inside of that group every single week by yours truly. Thank you so much for joining us today on Accelerated Real Estate Investor.
You were just listening to the Accelerated Investor podcast with Josh Cantwell. If you enjoyed this episode and learned something new, help us build the A.I. community by leaving a review and five-star rating on our iTunes podcast channel. Also, don’t forget to subscribe so you never miss another episode. To see passive investing opportunities, visit FreelandVentures.com/passive. To start your journey toward the lifestyle you’ve always dreamed of with multifamily apartments, apply for one-on-one coaching with Josh at www.JoshCantwellCoaching.com.
When you put $100,000 in the bank and they pay you $250 in interest, you may not see the behind-the-scenes rate of return that the bank is raking in. They’re earning a rate of return of 2,000% on money that they’re paying you 0.50% in interest. Tom Laune, the CEO of Stress Free Planning created the concept of bulletproof wealth so that you can become your own bank and dramatically improve the interest rate you earn on your own money.
How does a 200% rate of return sound to you? Tom’s going to explain all about the specially designed life insurance policy that grows every year, but also lets you have access to your own cash within 5-7 days. It’s not a line of credit; it’s a collateralized line of credit. You’re investing inside the insurance policy, and then if you need the money, you’re able to borrow against your own investment.
If you bought an apartment complex and the tenants decided to pay you zero for the whole year, you would absolutely believe that you’re getting ripped off. That’s what it’s like to have an indexed universal life policy at a zero floor. Tom is combining life insurance and a way to save money that gives you consistent returns that you just don’t get in other life insurance policies.
Everyone needs to diversify, and if you’re heavy into real estate, this is the perfect complementary investment strategy. It offers the liquidity that real estate simply doesn’t provide, but there is a window of time that you should deploy this strategy. Between your late 20s and early 50s is when you’ll have enough money and enough time to let this strategy grow with you. After your 60s, it just becomes too expensive to fund it.
For those who think that investing in mutual funds is the only way to go, check Tom’s website out. He offers free webinars that will challenge that kind of thinking and open your mind up to what bulletproof wealth looks like.
- How you can make money like banks make money.
- If you start overfunding life insurance as a young guy, what kind of benefits are there for you in tax or investment benefits?
- This type of insurance provides not only a death benefit, but it has more liquidity to help your family deal with your real estate assets should you pass away.