I’m not in favor of IULs.

[Allen Trent]

I believed this guy and now I am finding out he is involved in Ponzi schemes.

I don't know for a fact that he knew it was a ponzi scheme, but the regulators & others believe he knowingly promoted unregulated securities & was paid commissions for promoting & bringing investors to the Woodbridge Investment that ended up being a $1.3B ponzi scheme. He may not have been a ringleader in the ponzi scheme, but he certainly is a hypocrite in his videos about IUL. If he believes IUL is the best in all those videos, then why get people to invest in such a high risk, no protection gamble like Woodbridge

 

[Jab246jab]

Doug Andrew, despite the lawsuits, has always had dubious math in his Missed Fortune examples. That's been around for over 20 years now. The principles may be sound, but you had better know how to implement on them in a prudent and ethical manner, especially if using an interest-only mortgage, that the client can afford their mortgage payment if and when interest rates rise, and how to properly structure their life insurance policy.

I've heard of agents who took the cash out proceeds from an interest only mortgage and put it ALL (100%) into the FIRST YEAR PREMIUM of a policy. That's downright criminal. So the next year, the client can't afford the ongoing premium... nor would they be able to afford the mortgage when the interest-only period expires and the payments are principal and interest.

So many abuses on this in the past. This is why it's one of the questions regarding the source of funds/premiums for life insurance... and if it's a mortgage, you'll need to provide more details at best, or they'll decline the application at worst.

The lesson is that there's often a lot of history behind certain people and whether it's intentional or simply badly implemented. I don't need anything that Doug Andrew does. I don't pay any attention to it. (I do find it interesting that he's a current or past client of Dan Sullivan's Strategic Coach though.)

There are plenty of good people to learn more about IUL both here in this forum as well as others. David McKnight is one who I follow and he wrote the book "Look before you LIRP." If you want someone to follow in the IUL space, follow him on YouTube.

Thanks for the advice. I trusted Doug Andrew but now I realize he is a ponzi scheme guy. Following Doug Andrew advice from his youtube videos could cause an agent some serious problems.

 

[Jab246jab]

I don't know for a fact that he knew it was a ponzi scheme, but the regulators & others believe he knowingly promoted unregulated securities & was paid commissions for promoting & bringing investors to the Woodbridge Investment that ended up being a $1.3B ponzi scheme. He may not have been a ringleader in the ponzi scheme, but he certainly is a hypocrite in his videos about IUL. If he believes IUL is the best in all those videos, then why get people to invest in such a high risk, no protection gamble like Woodbridge

He says IUL is better than real estate and stock investments. But seems he only says it because he is banned in those markets.

 

[DHK]

Thanks for the advice. I trusted Doug Andrew but now I realize he is a ponzi scheme guy. Following Doug Andrew advice from his youtube videos could cause an agent some serious problems.

I won't necessarily go that far. Woodbridge Wealth got a lot of agents (who didn't necessarily do enough due diligence) caught up in their stuff. Doug Andrew wasn't the orchestrator, but it was the sale of unregistered securities to non-accredited investors.

 

[Jab246jab]

I won't necessarily go that far. Woodbridge Wealth got a lot of agents (who didn't necessarily do enough due diligence) caught up in their stuff. Doug Andrew wasn't the orchestrator, but it was the sale of unregistered securities to non-accredited investors.

Doug Andrew should have known better. I know better than to do that and Doug Andrew is much more knowledgeable than I am.

 

[PrivClientSG]

I think a lot of professionals collapse "sales" and "marketing" with truly being an "expert" and widely respected in the field. Two very different and distinct people. Just because someone sells a lot, markets, has exposure, even notariety, etc. -- doesn't mean they are truly an expert in the field. There have been some truly great life insurance fessionals in our industry. One may market, write books, do videos, etc. -- and if the motivation is exposure, notoriety, etc., and perhaps they have "something" to sell (other than being a producer). That's not always a bad thing, but I'd look at that. In addition, many of the true experts in our industry are not life insurance producers. Steve Leimberg was a perfect example of that. Robert Ritter Jr. is another example. Having something to sell does not make a person bad, nor does it automatically put you into one category or the other.

However, as far as a life insurance producer/professional, show me one who has presented/lectured on the national stage -- Heckerling, AALU, NAEPC, Forum 400, etc. -- show me one who is widely respected and well known by both peers and allied professionals, and that will speak to legitimacy. Look at the life insurance professionals who are in the NAEPC Hall of Fame. Don't get me wrong, we've all seen a top person in our industry, well known, well respected, etc. -- go bad -- so it happens. But for the most part -- check their motives, see who they are in and around our industry, and separate the two. Then you'll know who is who.

 

[Life Hawk]

Don't get me wrong, we've all seen a top person in our industry, well known, well respected, etc. -- go bald -- so it happens.

Yep, feel you on that one.

 

[Jab246jab]

I think a lot of professionals collapse "sales" and "marketing" with truly being an "expert" and widely respected in the field. Two very different and distinct people. Just because someone sells a lot, markets, has exposure, even notariety, etc. -- doesn't mean they are truly an expert in the field. There have been some truly great life insurance fessionals in our industry. One may market, write books, do videos, etc. -- and if the motivation is exposure, notoriety, etc., and perhaps they have "something" to sell (other than being a producer). That's not always a bad thing, but I'd look at that. In addition, many of the true experts in our industry are not life insurance producers. Steve Leimberg was a perfect example of that. Robert Ritter Jr. is another example. Having something to sell does not make a person bad, nor does it automatically put you into one category or the other.

However, as far as a life insurance producer/professional, show me one who has presented/lectured on the national stage -- Heckerling, AALU, NAEPC, Forum 400, etc. -- show me one who is widely respected and well known by both peers and allied professionals, and that will speak to legitimacy. Look at the life insurance professionals who are in the NAEPC Hall of Fame. Don't get me wrong, we've all seen a top person in our industry, well known, well respected, etc. -- go bad -- so it happens. But for the most part -- check their motives, see who they are in and around our industry, and separate the two. Then you'll know who is who.

Thanks for the information. It is very helpful. I appreciate you taking the time to share this information. I looked up Steve Leimberg and he has some really good books I am going to buy.