The Secret To Increase Your Rate Of Return By 10x Or More Through Collateral Optimization!

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Do you want to bulletproof your wealth Today s guest is Tom Laune As a music industry professional who lost part of his hearing due to an accident he realized that if he didn t have some form of long-term disability insurance he would have been in a lot of trouble He created the Bulletproof Wealth Strategy to help others protect their income and grow their wealth Key to his strategy is saving your capital in a place where there is compounding growth Tom solves the problem of low returns and increased taxes when storing money in a traditional bank By creating a line of credit using specially designed whole life insurance they help real estate investors across the country The cash value of the policy is guaranteed to grow creditor-protected and tax-advantaged Real estate investors love that there are zero loan origination fees or required interest payments 00 01 – 05 40 Learning About Long-Term Disability Policy Losing his hearing after 29 years as an audio engineer Why it is uncommon for people to have a standalone disability policy Helping other people be aware of this coverage 05 41 – 11 12 The Bulletproof Wealth Strategy Tom on the best place to save your money collaterals Everything can be collateralized Bulletproof wealth plan vs home equity line of credit Convertible term insurance and whole life insurance 11 13 – 17 45 Optimizing Collateralization Alternative to a savings account but with a better rate of return Using insurance money to fund your real estate investing A capital with uninterrupted compounding growth plus an actual asset It s not a get-rich-quick scheme 17 46 – 18 59 Closing Segment Reach out to Tom Links Below Final Words Tweetable Quotes I have searched high and low trying to find the most tax-advantaged and the best place to store long-term capital that allows you to collateralize it One of the big things I talk about is collateral – Tom Laune Creating like a line of credit inside of a specially designed life insurance policy that is what I teach people I think it s the safest place to store long-term capital because you have compound growth – Tom Laune —————————————————————————– Connect with Tom Follow him on LinkedIn Visit their website and schedule a call with Tom to know more about The Bulletproof Wealth Strategy Connect with me I love helping others place money outside of traditional investments that both diversify a strategy and provide solid predictable returns Facebook LinkedIn Like subscribe and leave us a review on Apple Podcasts Spotify Google Podcasts or whatever platform you listen on Thank you for tuning in Email me sam brickeninvestmentgroup com Want to read the full show notes of the episode Check it out below Tom Laune 00 00 The best way to do that is to protect yourself with what s called convertible term insurance which I m telling you nobody understands how that works either It s a really misunderstood product And there s huge advantages to it Intro 00 19 Welcome to the How to Scale Commercial Real Estate Show Whether you are an active or passive investor we ll teach you how to scale your real estate investing business into something big Sam Wilson 00 27 Tom Laune created the Bulletproof Wealth Strategy to help others protect their income and grow their wealth The secret to his strategy is teaching people to use money like banks do to earn much higher rates of return than the average investor Tom welcome to the show Tom Laune 00 42 Thank you Sam I really appreciate it I m so glad to be on your show And I m looking forward to spending some time with you today Sam Wilson 00 48 Absolutely Three questions I ask every guest who comes on the show in 90 seconds or less Can you tell me where did you start Where are you now And how did you get there Tom Laune 00 55 Okay I started in the music industry And I was a professional recording engineer and mix engineer who started to lose hearing in one ear after 29 years And I realized that if I hadn t had some protection on my ability to earn a living through some special type of insurance I would have been in huge trouble So I got this really great long-term disability policy that I had enforced for over 20 years and then transitioned and went back to school and got three financial designations And now I m teaching people especially real estate investors how to make their wealth as bulletproof as possible So I ve created a strategy called the Bulletproof Wealth Strategy Sam Wilson 01 43 That is really unfortunate You were in the music industry for 29 years Tom Laune 01 48 Yes sir Yeah I worked with like Bruce Springsteen and REM and Amy Grant and a bunch of you know The Fabulous Thunderbirds a bunch of great artists But of course I used my hearing that whole time to do it And if I didn t have the protection that somebody put in place for me I would have been really in trouble So that s what I decided to do is to help other people learn the same strategies that I had was fortunate enough to be able to learn Sam Wilson 02 17 Outside of a long-term disability policy what was the other protection that you had in place Tom Laune 02 23 So that when I was doing this for me personally that was the main thing that I had then And that is a part of my strategy Now I will tell you this very few people have that I m telling you right now out of 1000 people there might be 15 that have a long-term standalone disability policy unless it s been given to him free from work which those aren t interesting The work ones are okay they cover about 60 of your income but it is taxable So that s not the main thing that I do now But it is a part of my strategy for sure Sam Wilson 02 57 Yeah that s really interesting I mean I m not one of your 15 and 1000 I mean it s so uncommon you hear so few people talk about it Tom Laune 03 04 It s very uncommon The reason it s so uncommon is because it s not a lucrative thing for advisors to talk about it It s very difficult to get somebody covered oftentimes their coverage is reduced And the thing does not really pay You know it s just not advantageous financially for people to talk about it for the most part but because I was helped so much by it I m willing to you know help people get it because I know super important for me to have Sam Wilson 03 34 What do you think is not a profit center for insurance companies And so that s why Tom Laune 03 41 They re dropping like there s a huge amount of liability on that type of coverage Because if somebody goes on claim they can be on claim for 40 years right And the payout is tax-free It s just unbelievable the advantages that you have with that and that s why they re very very picky about who they let have it Sam Wilson 04 04 Yeah that sounds really challenging I guess on that side of things you know if they re really picky about who they actually give insurance to how can you go out to the masses and say Hey here s a product of things you d have Tom Laune 04 18 So yeah I can go out to the masses and say that because there are people that can get it and I was one of them that could get it You know I can t guarantee I can get it for everybody but I can sure try You know that s all I can tell you is that most people don t aren t even aware that they need it Sam Wilson 04 35 Right No it certainly not I mean your ability to earn if you become severely impacted And I think this even falls in the Dave Ramsey camp And you know everybody s got their own opinion on Dave Ramsey but I think even Dave Ramsey said you know have a sound financial plan This needs to be part of it Tom Laune 04 51 100 I mean this is one of the things that Dave and I agree on and we don t agree on much But this is definitely one of them I mean I don t have any problem with Dave he lives is right near where I live I used to go to church with him It s just that his speaking to a certain audience and that certain audience is very very middle class you know scenario And I m most my mostly my client base is real estate investors and I m a real estate investor And that s who I speak to primarily Sam Wilson 05 20 Right Yeah Again like you said there s a certain segment of our society that needs to hear what Dave Ramsey has to say And they need to totally and they need to implement it without questioning get it done Yeah exactly Another segment where it s like well we can take that and and kind of mix in a little bit a few other ideas in here because this isn t going to work for everybody So write that in We re not here to discuss Dave we re here to discuss what the bulletproof wealth plan looks like Can you tell us what are some other components to it Tom Laune 05 47 Absolutely well the main thing I do is help people figure out where is the best place to save money right because traditional banks have one advantage and that is liquidity That means if you put 100 000 into a traditional bank the only advantage you have is that you can pull that 100 000 out the next day if you need it for something right That s basically it Other than that you re losing money to inflation by leaving money in a bank number one And number two there is no other advantage to it because the money that you earn in a bank is piddly diddly almost nothing And it s taxable at your ordinary income rates So the interest that they pay on traditional savings accounts is terrible So I have searched high and low trying to find the most tax-advantaged and the best place to store long-term capital that allows you to collateralize it one of the big things I talk about is collateral And I know your audience probably understands collateral but that s really just having an asset the bank can use to pledge to be able to borrow against it Really that s what collateral is and everything can be collateralized to one degree or another so you can collateralize stocks and bonds you can collateralize diamonds and you know precious metals you can collateralize cryptocurrency you can collateralize real estate But those all have a lower collateral capacity in terms of how much you can collateralize them versus what I do which is creating like a line of credit inside of a specially designed life insurance policy That is what I teach people I think it s the safest place to store long-term capital because you have compound growth that means the money is growing year over year on in a compounding way And you re able to collateralize it at 90 to 100 depending on the account value And you re able to have all of these other amazing benefits like asset protection it works very similar to what I teach people to a home equity line of credit the big difference between a home equity line credit and a bulletproof wealth plan is that on a home equity line of credit when you take a loan against it it dings your credit score your FICO score it s reported on your debt to income ratio when you take a loan from the place where I have my clients storing capital it does not And of course a home equity line of credit does not pay a dividend So it s another huge differentiator is that you ve got to be looking at where are you saving capital so that you can take advantage of deals when they come along Sam Wilson 08 35 Right Yeah that s a very very interesting point So you ve got you ve hit on two key parts of this one is the long term disability The second one is the whole life insurance upset whole life there s probably some nuance there that I m getting completely wrong you can clarify Tom Laune 08 50 That s fine The whole life is the traditional the thing Dave Ramsey has right is that you can design whole life to be terrible or you can design it to be great And he only talks about the terrible kind you know so going back to that it s frustrating is that he s only getting a tiny little sliver of the picture out to the world And basically everybody thinks it s awful Well you can design it just right here I m here to tell you you can design it to be phenomenal to pay very low commissions and to have a lot of cash value You just have to work with somebody who understands how to do this And that s what I specialize in So that s the second component of the three components of the bulletproof wealth strategy Sam Wilson 09 34 What s number three Tom Laune 09 35 So number three is that there is an option strategy that I employ And it is a special type of long is a special type of term life insurance that allows you to convert later to a whole life policy Because everybody asks me hey what happens if I start saving 25 000 a year now but then two years from now I want to start saving 75 000 Because I ve got a big raise or I have a financial windfall And the best way to do that is to protect yourself with what s called convertible term insurance which I m telling you nobody understands how that works either It s a really misunderstood product And there s huge advantages to it Sam Wilson 10 20 What are would you ever put someone in a whole life and a convertible term at the same time Tom Laune 10 27 I do that all the time So they start with a whole life to hold whatever amount of money that they want to initially put into it And then they have a convertible policy that allows them to convert to another whole life policy later when they re ready So it is very very frequent that I do too In fact I usually set somebody up with three things I long term disability policy a term convertible policy and a whole life policy That way they can have all the optionality and they can move money into these things as they re ready And I always look out for making sure that their maximum insurable interest is protected and that their wealth as bulletproof as humanly possible Sam Wilson 11 12 How much of a what you re gonna call it a properly structured whole life policy is insurance for you in your eyes and how much of it is actually just more of an investment vehicle with some really cool benefits Tom Laune 11 28 Okay so zero of it is an investment vehicle none And what it is is that there s a huge percentage of it that s a savings vehicle So it s like an alternative to a savings account but you re getting a much better rate of return than a savings account So I ll give you some numbers on a 130 000 deposit which I have a lot of people that s just kind of a magic number because you can create a line of credit for usually depending on your health and your age around 100 000 So if you put in 130 you can get a loan for around 100 after 30 days so it s not tied up for a long time you know a large amount of your capital is able to come back to you to then put into an investment The difference is is that you re not actually putting your own money in now you re doing this collateralization where you re using the insurance companies money to find your real estate investing does that make sense Sam Wilson 12 29 Sort of if I put 130 in bucket and I can get it out Tom Laune 12 35 Yep so you re down 30 But now all of a sudden you also have about 3 million or so in life insurance And then every year you put more money in the amount of money you have available grows relative to the amount you put in until around year eight you have more money available in your life insurance than you ve put in all for the previous seven years And then it keeps compounding to where by the time you re ready to retire you have saved double what you put in and you ve been able to make your investments as well So if you put in a million you might have 2 million in your cash value That s just an example over your lifetime I m talking And then you would be able to use that 2 million to put into your real estate investments And as long as you re earning more on your real estate investments than you re paying the insurance company you re employing arbitrage to be able to pay down that balance quicker And the whole thing works out in an unbelievably advantageous way It s just it s incredible Sam Wilson 13 41 Yeah I kind of you know it was not the sharpest pencil in the drawer So I m trying to run the numbers here and I go Gosh why not just take the 130 Grand put it in a real syndication have your money doubled in five years and now I got 260 grand I can go and do something else with Tom Laune 13 58 Right So in this case you would be taking 130 taking 100 out and putting it into a real estate investment But this is the thing is that the 100 continues to work for you and earn dividends and grow And your money is also in the real estate investment So at the end of the day you re going to have this huge pool of capital that you ve been building for your whole life with uninterrupted compound growth And you re going to have the real estate investment as well And your wealth is protected because what happens if two years into this plan you get hit by a truck Now all of a sudden your family is going to have millions of dollars that they otherwise wouldn t have had So you have this layer of protection as well And depending on what state you live in you have asset protection that is incredible as well So you have creditor and creditor protection up to 100 for most of the states I work in California does not have it But Texas Florida a lot of the big states do have 100 creditor creditor protection Where are you based out of again Sam Wilson 15 08 I m right here with you man I m just down the road Memphis Tom Laune 15 12 No way okay that s amazing So Tennessee 100 Sam Wilson 15 16 Yeah I know the 931 It s my wife s from so Absolutely That s really so if I understand this right the 100 000 that you pull out is still treated as if it never left your policy Tom Laune 15 30 Or because you re not pulling your own money out You re doing a collateralization Right So you aren t Sam Wilson 15 36 That policy or that insurance company Some form of interest Tom Laune 15 41 Yep It s 4 currently So if you were putting 100 000 into a real estate investment earning 8 that would be 8 000 Right Your cost of capital would be 4 000 Right So you re just paying the interest So rather than making let s just say a percent total return now you re only investing 4000 Because your 100 000 is still earning money for you Right right And so you re actually converting an 8 return into 100 return by thinking and acting like a bank does You remember when a bank lends money they re not lending their own money they re lending their depositors money out right That s exactly what I m teaching people And I m telling you it sounds a little bit difficult to uncover right at first But once you start digging into this it is a mind-blower What actually happens as these things mature and they get into them a little bit It s not a get-rich-quick scheme It s more like a get wealthy slow scheme Sam Wilson 16 47 Yes And I know plenty of very savvy people that use this strategy I think the key here and I ve talked to I don t know probably three other people on this show before you know maybe obviously you guys all do very different things But one of these components is the same And this is it Yeah But the thing that I think is the key here is that it takes until about I think you said year eight here are my notes Yeah you re right Yeah is when your the money you ve put in and the available money to borrow is the same Tom Laune 17 16 Yep it s very close though year four usually your year on year cash is the same meaning if you put in let s just call it 50 000 you have 50 mew 1 000 to be able to borrow against so you can get a collateralized loan for the same amount you deposited which believe me that is the magic here when you re not down at all in liquidity or even and then it starts compounding from there you know so it really is amazing Sam Wilson 17 46 Tom thank you for taking the time to come on today This is a blast If our listeners want to get in touch with you learn more about the strategies And again you know even just talking I know disability insurance probably isn t the most thrilling Yes we ll talk about but these are important components of a financial strategy what s the best way to reach out to you and learn more about you Tom Laune 18 05 So I ve got free educational videos that is really breaks this all down at bulletproofwealth info bulletproofwealth I-N-F-O Just go put your name and email address in watch some of these great videos that I ve produced And then if you want to do something just click the schedule a call with Tom and I ll be happy to go through and show you what you can do Sam Wilson 18 29 Thank you for your time today I certainly appreciate it Tom Laune 18 31 You re welcome It s great to be here Thank you Sam Sam Wilson 18 34 Hey thanks for listening to the How to Scale Commercial Real Estate Podcast If you can do me a favor and subscribe and leave us a review on Apple Podcasts Spotify Google Podcasts whatever platform it is you use to listen if you can do that for us that would be a fantastic help to the show It helps us both attract new listeners as well as rank higher on those directories so appreciate you listening Thanks so much and hope to 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