@Doug. Thank you for this information. How would one put a large sum of money into an IUL insurance policy in one sitting when there are restrictions on how much one can place into it annually?
You would use an insurance carrier that offers what is called a PDA (Premium Deposit Account). They can take the full lump sum in one sitting and credit you interest on the PDA while they transfer yearly into the policy for you to comply with TAMRA. The interest is better than a bank, which is nice.
@@millionairebythirty Thank you for the reply, Emron. 1. Is the interest being applied to the PDA the same annual percentage being applied to the cash value in the IUL? 2. I read your book, Millionaire by 30. In one of the examples, the lady was able to retire at 30 and start taking loans from her policy because she had been able to deposit large, varying amounts of money into her IUL yearly from age 21 to 30. So that's where my initial question came from. Since by law, we are limited to depositing the same amount annually, I just wonder how this can be done because even if the PDA is used, cash transferred into the IUL is still limited to a maximum deposit annually.
@Emron Andrew, I love the concepts and education that we get from Doug. He mention about putting money in Laser Found from 2008-2012 and making 8%-10% interest. How it works, or what kind of strategy you used making that kind of interest when the market is down and you can get 0% on index accounts.
If you are talking about barrowed money (I assume it is refinance with cash-out), so in order to take tax detection the money should be used for home improvements. Certainly i am missing something here or need clarification
Correct, under section 163 of the IRC, you learn that you can deduct interest that is part of your acquisition indebtedness on your primary and or secondary residence. You used to be able to deduct interest up to $1M of indebtedness, but has now been reduced to $750,000. You used to be able to deduct interest on up to $100k of home equity indebtedness, but this was recently eliminated. But don't borrow money for the sole purpose of getting a tax deduction. If you get a deduction, great. The real money secret here is understanding how to borrow and pay simple interest and turn around earn compound interest. You will pay the less and less interest every year on a traditional mortgage, whereas, you will earn more and more interest on the invested money.
Thank you. This is the information we should have learned in high school! Your videos are appreciated.
Yes
@Doug. Thank you for this information.
How would one put a large sum of money into an IUL insurance policy in one sitting when there are restrictions on how much one can place into it annually?
You would use an insurance carrier that offers what is called a PDA (Premium Deposit Account). They can take the full lump sum in one sitting and credit you interest on the PDA while they transfer yearly into the policy for you to comply with TAMRA. The interest is better than a bank, which is nice.
@@millionairebythirty Thank you for the reply, Emron.
1. Is the interest being applied to the PDA the same annual percentage being applied to the cash value in the IUL?
2. I read your book, Millionaire by 30. In one of the examples, the lady was able to retire at 30 and start taking loans from her policy because she had been able to deposit large, varying amounts of money into her IUL yearly from age 21 to 30. So that's where my initial question came from. Since by law, we are limited to depositing the same amount annually, I just wonder how this can be done because even if the PDA is used, cash transferred into the IUL is still limited to a maximum deposit annually.
MissEducated it is not the same interest as the index credit. It is a fixed rate. Right now normally around 3%.
@Emron Andrew, I love the concepts and education that we get from Doug.
He mention about putting money in Laser Found from 2008-2012 and making 8%-10% interest. How it works, or what kind of strategy you used making that kind of interest when the market is down and you can get 0% on index accounts.
No link to the synthesis video?
Thank you
You're welcome
Is there like a list of ethical financial advisors?
If you are talking about barrowed money (I assume it is refinance with cash-out), so in order to take tax detection the money should be used for home improvements. Certainly i am missing something here or need clarification
Correct, under section 163 of the IRC, you learn that you can deduct interest that is part of your acquisition indebtedness on your primary and or secondary residence. You used to be able to deduct interest up to $1M of indebtedness, but has now been reduced to $750,000. You used to be able to deduct interest on up to $100k of home equity indebtedness, but this was recently eliminated. But don't borrow money for the sole purpose of getting a tax deduction. If you get a deduction, great. The real money secret here is understanding how to borrow and pay simple interest and turn around earn compound interest. You will pay the less and less interest every year on a traditional mortgage, whereas, you will earn more and more interest on the invested money.
could skip the bible references. Please consider that; otherwise amazing videos