[Music] hello [Music] everybody hello everybody yes oh why thank you okay okay okay that's enough that's enough stop that right away wow that was noisy whoa what does that mean okay hi everybody how is everybody did you hear the new music was exciting it was a little exciting wasn't it okay everybody and Good morning Vietnam hope everyone's doing well hello everybody Michaels we're just gonna do it live Michael we're just gonna do it and we're gonna do it live if you're watching from the United States let me see a uh let me see a one Vietnam is two let me see two three and then she's in Australia and she said J am Australia Australia Australia in my in my heart uh the beef in Australia is so good that the f is very good there I am so busy that for ton live stream so sometimes I work all the way up until it's time and I don't always finish so um forgive me okay I'm I'm ordering a new uh Food Service service everything all the ingredients and I cook it at home now I'm so busy so now I'm trying a new service where they just it's already cooked and you just have to heat it up it's pretty good um but it's not Vietnamese food oh my gosh I would love that even north of Los Angeles that's how far I live and then so much traffic yeah sometimes okay Hannah you can do it for me huh yes I wish Molina I love to cook but there's no time sometimes l no fa cuz my kids love and um so I'm going to try to slow down and make some time to do that first of all everyone this video is meant for educational purposes only not to be taken as specific tax or investment advice no because everyone is different please contact me okay how's everyone doing are you ready are you ready does anyone know what the problem with life insurance is the problem with life insurance is that a lot of people don't understand it most people don't understand it huh by the way that's how you spell huh huh right most people don't understand it so I'm going to try to explain some things tonight it's it's actually very complicated and I can't explain everything to you right now because there are so many different kinds of life insurance and depending on your situation your family your finances your health your age the state that you live in how many kids that you have it's very personalized so no hammer and nail no hammer and nail does anyone remember the hammer and nail story my husband has a saying when all you have is a hammer everything looks like a nail that means one solution fits all that's impossible so if you're going to one person who only can offer you one thing that might not be the best for you um oh I love meeting people I just you know it doesn't matter I just and then even though they live some Ohio Virginia Washington wherever I just feel right away you know like their family so I I listen to their stories I learn about their family and then I try to help them find what I think is best for them um so no one size fits all go to someone who can offer you more than one solution and I am so surprised but then again maybe not how many people purchased life insurance who didn't understand anything about it I hear stories no it's your future okay no okay you're not doing them a favor and they may not be doing you any favors I'm going to write it down he's not doing you any favors that's kind of a polite way okay this is kind of a polite way okay though he's not doing you any favors okay so when it comes to things like life insurance you must understand and you must trust the person you're that's helping you with it I'm going to say this more than once the companies the insurance companies the products are not bad the products are not bad it's bad agents who give you the wrong product for you okay term insurance is awful term insurance is bad Never by term that's because they're not going to make any money on it term insurance is a great option for some people in fact today I helped someone get a term insurance policy okay term is a great option and term okay ter you can also get sickness protection with it too oh I bet you didn't know that okay so anyone who tells you la only this is good H that's bad don't listen to them it's because they can't make money off of you yeah find out no do what's best for you okay okay Roy here we go I've been talking to a lot of people about 401K 401 section K is a tax code it was created in 1978 when income taxes were crazy crazy right that's why they created the 401K so people can defer taxes so down the road you have to pay those taxes so back then when taxes were so high it made a lot of sense it taxes aren't that high anymore so you need to look at how much you're putting into it and what's going to happen to your money don't forget taxes okay so everyone knows 401k plan okay company sponsored it's a retirement account that employees can contribute income and then sometimes employers match it wow huh two basic types yeah there's traditional and WTH I've talked to many people who don't know the difference if you know a lot about finances you might think that's so easy how can anyone not know you but not everyone is good with finances okay so let's just help them understand it traditional traditional IRA okay traditional 401K is pre-tax dollars down the road you pay later okay so you reduce your taxable income you cannnot hide you will pay later okay um so the two different kinds it's how it's taxed uh the Roth made with after tax dollars which means you pay your income tax and then you put that money in there and then you grow it you like it no no tax okay so pre-tax dollars and after tax dollars um and then you can the employer contributions can go to either traditional or Roth oky dokie here's another tax code many people have not heard of now uh meeting oh my gosh it wasn't always available but now it is some people even say to me too good to be true how you don't know what you don't know so let's take a look at the next tax code 7702 if you don't know it if you don't believe it exists look it up go to the IRS web page and look it up okay section 7702 of the tax code differentiates that's a fun word differentiates between income from a genuine Insurance product and income from an investment vehicle you are now going to be investing inside a life insurance policy so they have to set rules because there are certain types of permanent life insurance that build up cash value over time in fact the more the better for you right right so the proceeds of a true life insurance contract okay according to the IRS true life insurance contract then you don't have to pay taxes on that okay favorable tax treatment okay the life insurance if you follow the rules income okay now if the proceeds of a contract do not meet IRS definition they are taxed as ordinary income for but they didn't tell her and she's so lucky she is in big trouble yep I'm going to show you you later an insurance policy that fails section 7702 criteria becomes a modified endowment contract also known as Mech Mech everyone say Mech no that's easy Mech you will see it in many life insurance policies and once you go over the mech limit you never go back you lose the tax advantage this is very very very very important a Big Mac okay modified endowment contract that's the term given to a life insurance policy whose funding has exceeded you went over the federal tax law limits these limits on the amount of cash inside a policy okay are in place to avoid abusing tax advantages that are inherent in permanent life insurance they don't want you to AB abuse the system but you could use the system oh that's a good one right there they don't want you to abuse the system but you can use the system they learn how to use the system and it's legal okay it's legal you do anything illegal you're probably going to go to jail so I'm not telling you to do anything illegal you must follow the law okay so having someone structure it correctly very very very important okay uh where were we if you're really interested in finding out more look up Tamra the policy must fail to meet the technical and miss aneous Revenue Act of 1988 Tamra seven pay test so when you get into some of these policies it's there's a formula okay and the agent must know how to structure it for you so that you don't fail the test you don't go over the limit because if you do the IRS will come for you and once a policy has triggered Mech status even if it's by 50 Cents hold on a second it cannot be reversed limit to you done IRS is going to tax you on the ENT entire amount no going back no going back I don't care if you made a mistake they don't care if you made a mistake no going back so no no room for mistakes okay let me show you what this woman avoided I don't know can uh so I blacked out the information uh so we don't know her name she was in California and I've never seen anything like it okay I circled it so you can see she has a lumpsum insurance policy they like it a lot it can be done it has to be structured correctly okay and you see there right next to the number one it has a pound signed actually at bottom of this one and what does that say what does that say let me see if I did I do it yeah that's what it says this policy becomes a Mech in year One what how can they do that to her over the limit first year policy becomes a Mech in Year One she worked hard for her money who would do this so maybe the agent didn't know maybe the agent didn't know a Mech in year one okay right she's going to look the the it's going to go up she's going to be Jo the IRS is going to go after her for taxes yep everything she makes will be taxed as income awful okay that's why it's important to understand van ask the agent contact me I will look at it just like I looked at that one okay uh I also talked to another girl more agent what so that's why refer what is the uh [Music] refer sometimes right so now if you are with me I take personal responsibility when I read that I could not believe it that's crazy right you want to help people okay right um we're going to talk about IL because this is where people okay this is where people are are are trying to make that money and take advantage of that new tax code not very new so if you come to me for help okay with your retirement savings I may recommend an IL but I may not it depends on your situation a couple people I said no this is not this you cannot do this okay but it does work for a lot of people it's great for a lot of people um and and because it's good for so many people I want to go through some of the major pros and cons pros and cons pros and cons isn't what are Pros anyway the good and the bad the good and the bad so here are the pros okay um here's some of the pros so it has no risk to stock market downturns okay you've heard me talk about a 0% floor invest a stock market right stock market 41k you can go backwards you can go backwards okay like I don't know how many people wow they lost a lot that's the risk you take okay so 0% floor means you can't the worst you can do is not make money so when everyone else is losing money you just stay there no you don't make money you don't make money but you don't lose money M okay okie doie how do I get to the next slide ah no contribution limits you can do that 401k Ira Roth contribution limits every year so if you have more money you can't just put it in your WTH okay you can't just put it in an Ira okay so that's a pro no contribution limits that's good no rmds we talked about this last week required minimum distribution it's the amount of money that must must be withdrawn from an employer sponsored retirement plan a traditional IRA a sep simple IRA okay and if you don't you get a penalty and when you do you have to pay tax don't forget that and then guess what no f it used to be the the law just changed this year it used to be 50% penalty can you believe that this year there be so many people in trouble they lower it to 25% 25% on top of the taxes you owe oky doie oky doie no age restrict okay there are no age restrictions um I've helped people uh you know who are like 69 70 if you have the money I don't think I don't think we can help people over 79 but there are no age restrictions okay the youngest person I've helped two months old two months old uh there's no 59 and a half rule I think most of you know that rule by now right 59 and a half is when the IRS says you can finally begin to access that hard-earned retirement savings you have in your tax sheltered accounts like the 401K Ira okay here and an iul there's no 59 and a half rule you get market likee returns so that's good now is a very good time to get into it market like returns you're not fixed see like you're not like at a whole life policy where you're fixed at 3% you want to be able to go higher than just 3% so that's good your money grows tax-free that's also good uh easy penalty free access to your money okay you're you're not going to get a penalty for going in there and taking money out now there are safe and smart ways to do it safe and smart ways to do it and then they lay all of it that's not good you have to leave some money in the policy to keep the policy active the policy is what's giving you the 7702 to that tax code that's it's giving you protection pull all of it out then you no longer have that protection from the IRS on everything okay if you you know you need a little bit up to 90% of what's in there you take it out you're not going to get a penalty for it this is my favorite taxfree retirement income that's right tax-free retirement income so it's like a wroth right it's it's you know you've already paid the money you've already paid the tax with this money you put it in here it grows when you take out the income to use you don't have to pay taxes on it that's good that's a pro that's definitely a pro the income does not affect social security or Medicare ah this is also very important depending on your age let's say um let's say you're like if you start this early and then by the time you're 40s something 50 something and and they want to take out a student loan they apply for financial aid well when they apply for financial aid your income gets counted right if you make too much money they can't get the financial aid they need but this does not show up as income so the same way that it would not affect if they're applying for financial aid whatever it doesn't count as income but it won't affect your Social Security and your Medicare again it is not income that's that's a pro so of course you have to benefit you also have living benefits living benefits you don't have to die to use it you don't have to die to benefit from this that is awesome that that's important so if you get terminally critically or chronically ill this will give you money to take care of yourself and this is also important have it structured correctly okay they don't have to pay the facility receipt whatever they pay it to you you do whatever you want with the money home no no no okay now the cons cons the cons everything has good and bad right so we need to understand what the what may be bad because for some people it may not make a difference so it is a long-term commitment many iuls take anywhere from 10 to 15 years to really build up good cash value but guess what you can't touch your money in the 401K until you're 59 and a half right so depending on your age that might not even matter so it is a long-term commitment I don't want you to tell me I want an iul and then uh you know three five years later you want out that's not a good move you will lose money if you do that yeah so know that it's a long-term commitment um the the interest rate risk if interest rates go down these policies don't perform as well there's a performance risk of course there's a performance risk because it's linked uh to a market index like the S&P 500 okay there's no way no way to guarantee you how it's going to perform anyone who tells you they can they're lying the good news is that if the market crashes you don't lose your your money but then the bad news is you don't make money either okay now you're now you're feeling it it's okay okay right okay cost of insurance now I don't know why some people well because it's a cost of course there's the cost of insurance sometimes uh um I meet with people and then I I talk about this cost of insurance cost of insurance of course there's cost of insurance see they have to give you the money to use then insurance right okay so I had someone I had someone ask me uh yeah of course makes sense so I asked her right of of course everything has to make sense so there's a cost of insurance this is why it's very important for you to get it while you're young and healthy young and healthy please do not think no no the biggest mistake people make is that they don't plan for living too long then what will happen to you right we need money and so better today than tomorrow we don't know Facebook I have friends who are healthy healthy right stroke heart attack out of the blue right so we don't know what's what tomorrow will bring accident let's say you get a really bad accident and and and you can't work anymore you can't walk or you whatever see that's when you can use this money so worry about living too long don't worry okay worry about living too long Roy that the cost of insurance by the way I hope that this is easy to understand there's the cost of insurance go up right you're more likely to die you're more likely to get sick then the cost is go goes up why because we're better so the older you are the more health problems you have the higher your cost of insurance this is why that matters if your premium let's say your premium is $500 okay structure okay for right so that's how it works so if you're older if you're not as healthy you're going to have to put more money in yeah investing time and money a lot of time they don't have to use a lot of money because they've got time if you're older you don't have the time so you must make up for it in money if you want to make more so a lot of people always ask me I don't know so it depends on you you tell me what you can save for your retirement and then I'll tell you what you can get okay that's the way it works right back to cons fees of course there are fees okay of course there are fees everything cost something because you got to pay the cook you got to pay the bus boy you got to pay you have to pay everything costs money right everything cost money a properly designed I will keep your fees lower when I help people with this this is what I do I show them how I'm structuring it I don't do like okay and then they just tell you I show you what I'm doing and I'm going to show you that I'm putting it minimum death benefit Maximum cash flow we are maxf funding your policy to get out as much cash as legally possible okay so it a bad agent can kill a you UL policy okay if your agent is commission hungry all they want to do is make money it's not good for you it's not good for you that means they will sacrifice your money's growth to earn more money so the agent's going to earn more money and your money won't grow as much so when I build it out I show you look this is what I'm look at here you see it everything is very transparent okay but of course there's a fee and of course bad agents oh bad agents that's the problem with life insurance you say life insurance everyone wants to run everyone wants to run because they've had a bad experience or someone else had a bad experience and they told everybody right so when you um go online and you look up ilul just like with any business you look up a a a company of course you're going to see some bad reviews you will you need to read the reviews and and see what they're complaining about most of the time they're complaining about long wait times on the phone H bad customer service right or they're complaining about their agent I can't ever take a get a hold of my agent Huck my agent disappeared bad agents kill an IL policy bad agents have done a real bad service to the life insurance industry life insurance is important okay but it has such a bad reputation such a bad rap because so many people got it from the wrong person yeah so you should be contacting someone who is going to do what's best for you Okie doie oky doie so that's what you should be looking did I do oh no that's it that's the last side so again basically for anyone who hasn't looked into one yet you can get a life insurance policy using tax code 7702 right now many of you are using tax code 401K use 7702 invest it in there and then when you take it out to use it as income taxfree you have sickness protection if you are terally uh ill lumps some we've seen people do that and take a lump some out and build onto their home put a pool in the background help their family if you're critically ill yeah you're not going to die you're still fighting it now now you have a big amount of money to help you sometimes when people have cancer and they want to try alternative treatments right or there's a drug that's really expensive but they Insurance isn't going to pay for it you have this money now chronic Le ye chronic means if you can't do like two of the six daily living activities ADL well daily living activities daily living dla that means uh like dressing yourself okay okay going to the bathroom moving that's the stuff that you do for yourself chronic and when you're chronic then that kicks in and you get money every month and depending on the size of your policy it can be a lot of money right I mean I think it should be at least 10,000 a month but if you can get more than that then you should costs are going up okay it's like the difference between if if you want to go into a nursing home maybe you want to go to a nice one or you want to stay home and you want someone to come to your house and take care of you you have that money now and the wonderful thing nursing [Music] home okay living benefits don't think of life insurance as just death because it's not not you should be worried about living too long what are you going to get from Social Security you work so hard 1K and it might be even higher every time I go through it with with with someone I go through their you know monthly cost their take home pay sociality like right now if you have say 100,000 in your 401k but you still have 20 years of work left that's going to grow a lot and maybe your salary will start to grow too so when it comes time to take that out there's a formula of how much you have to take out no more tax write offs no more dependence no more mortgage interest of course no more if you had a business now no more business expenses okay so your income may not be as low as you think these are the things that we have to look at and these are the things that make everybody's situation different so um if you need my help and please read your email if you if you write to me email and then I follow up sometimes what I said I emailed you no one checks email anymore uh leno.net .n netmoney or just leno.net and you'll see it and I'll try to help you as much as I can uh oh I have great news sorry when I'm excited about something I talk very fast I have to remind myself to slow down so that you can understand me here's the good news right now I can only help people who are US citizens or who have green cards but we have a very big meeting coming up this week and we are getting ready to work with an international carrier so if you are in Canada if you are in Vietnam if you are in Australia okay we can um we'll soon be able to help you okay we'll soon be able to help you so remember leno.net money l.net you'll find it you'll find it here's another thing I need your information I don't need your personal information okay like Social Security 401 I need to know everyone is great Jaa I can't help you like if you don't tell me the truth I can't help you okay honest okay you want me to be honest right you should then I want you to be honest right yes good news about International Insurance absolutely I'm so excited about it I'm very very excited because this week we have a very important meeting and we hope to get that going pretty soon so it's G to go crazy but I think it's awesome Insurance inome yeah income in retirement tax read I don't think so I don't think think so um so there you go because I'm so excited I'm just so excited because I want to share with you right okay so remember to check your email um remember to give me your phone number just in case your email you type it in wrong okay um I go to Orange County once a week so I can meet you in person if you must I can take care of of anyone wherever they live in the United States and soon soon anywhere won't that be great yeah okay wind.net SL money okay let's see what uh let's see if this that weird Echo is going on let's hear some music shall we let's calm down a little [Music] bit my uh Maggie my email address but I'm going to I'm going to send you to the website anyway because I need um information okay I need [Music] information Lena [Music] l.net okay I look forward to talking to many of you hoping that I can help in some way remember to stay healthy remember to stay healthy and um we'll talk to you soon okay bye everybody have a good night let's enjoy the music a little more I hope you guys enjoyed it did you enjoy it did you oh you did okay bye good night see you next time