Laser Fund / Max-Funded IUL

Laser Fund / Max-Funded IUL: Built for High Earners, Structured by Licensed Tax-Free Wealth Specialists

The Laser Fund concept popularized by Doug Andrew uses max-funded IUL to build tax-advantaged retirement wealth. We structure these policies properly - compliantly with IRS 7702 and TAMRA guidelines. See if a Laser Fund fits your plan in 22 seconds.

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The Laser Fund Strategy

The Laser Fund Strategy Explained

"Laser Fund" and "laserfund" are terms popularized by Doug Andrew in his Missed Fortune book series and in his book The Laser Fund. Before we dig into mechanics, here is what the term actually refers to.

The Laser Fund is not a brand of insurance policy. It is a strategy built on a properly-structured, max-funded indexed universal life (IUL) policy. The design compresses the death benefit to the IRS minimum and directs as much of each premium as possible into cash value accumulation, while still meeting IRS Section 7702 and TAMRA requirements.

The Laser Fund strategy has been written about in Missed Fortune and The Laser Fund. Our team is not affiliated with Doug Andrew or Missed Fortune Inc. We implement the same underlying laser fund life insurance concept, under the same IRS framework, using licensed insurance specialists to design the policy.

If you want the broader context on IUL before getting into the laser fund specifics, start with our What Is an IUL? page.

How It Works

How the Laser Fund Structure Builds Wealth

The Laser Fund strategy is not complicated in concept. The execution is what matters. Here is how a laser fund policy is designed to build tax-advantaged retirement wealth.

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Maximum Funding, Minimum Death Benefit

The policy is structured so that contributions are as high as IRS rules allow while the death benefit is as low as IRS rules allow. The ratio is what makes the Laser Fund efficient as a retirement vehicle rather than a pure insurance vehicle.

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IRS 7702 / TAMRA Compliance

The Laser Fund structure stays inside IRS Section 7702 and the TAMRA 7-pay test. Stay inside those lines and cash value growth is tax-advantaged and policy loans are generally not treated as taxable income. Step outside (often by over-funding) and the policy becomes a Modified Endowment Contract (MEC) and loses its favorable tax treatment. Design matters.

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Index-Linked Growth With a Floor

Cash value is credited based on the performance of a market index (such as the S&P 500), subject to caps and participation rates, with a floor so a down market year does not produce a negative index credit. The laser fund strategy sits on top of this mechanism, not around it.

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Tax-Advantaged Access Via Policy Loans

Once the Laser Fund has built cash value, policy loans let you access it while keeping the policy in force. Structured correctly, those loans are generally not treated as taxable income, which is the tax profile the laser fund life insurance strategy is known for.

MFTA

What MFTA Actually Means

MFTA (sometimes written as the Missed Fortune Tax Advantage) is a framework associated with the same underlying laser fund strategy.

MFTA is shorthand for the tax advantages created when an IUL policy is max-funded and structured under IRS 7702 and TAMRA rules. The "advantage" described is the combination of tax-advantaged accumulation, tax-advantaged access via policy loans while the policy stays in force, and a generally income-tax-free death benefit under current IRS rules.

MFTA is not a different product from a Laser Fund. It is the framing of the tax-advantaged outcome that a properly-structured Laser Fund / max-funded IUL is designed to deliver. For the full mechanics of how max-funding works, see our max-funded IUL page; for the underlying IRS code section, see our 7702 plan page.

Who It Fits

Who Benefits from a Laser Fund Strategy

The Laser Fund is not for everyone. Here are the profiles where a Laser Fund / max-funded IUL structure tends to make financial sense.

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High-Income Earners

Households with strong, consistent income are the natural fit for laser fund life insurance. The strategy asks for meaningful premiums, especially in the early years, and is designed to compound those premiums over decades.

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Business Owners

Self-employed earners and business owners often have income that exceeds what traditional retirement accounts can absorb. A Laser Fund stacks cleanly on top of a Solo 401k or SEP-IRA as an additional tax-advantaged bucket.

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Maxed Other Retirement Vehicles

If you have already maxed your 401k contribution, phased out of Roth IRA eligibility, and still want more tax-advantaged retirement space, the Laser Fund is one of the remaining options that scales with your income.

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Long-Term Horizon (15+ Years)

The Laser Fund strategy rewards long time horizons. Cost of insurance in the early years is offset by decades of tax-advantaged compounding on the back end. If your horizon is under a decade, this strategy is not a great fit.

Why Setup Matters

Why Setup Matters for Laser Fund Policies

The single most important truth about a Laser Fund: an improperly structured policy is a bad policy, period. There is no retroactive fix.

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A licensed specialist will follow up with you. You are not purchasing anything on this page. IUL is a permanent life insurance product with fees; policy performance depends on index performance subject to caps and floors. Consult a qualified tax advisor regarding your specific situation.

Common Questions

Laser Fund & MFTA FAQ

The questions people ask most about the Laser Fund strategy and MFTA.

What is a Laser Fund?

A Laser Fund is a term popularized by Doug Andrew in his book The Laser Fund and earlier Missed Fortune books. It refers to a max-funded indexed universal life (IUL) policy designed for maximum cash value accumulation and minimum death benefit, structured to comply with IRS Section 7702 and TAMRA rules so that policy-loan distributions retain tax-advantaged treatment.

It is not a unique insurance product. It is a strategy built on an IUL policy, using a specific design approach.

Is the Laser Fund a scam? (Laser fund review)

The Laser Fund strategy is based on a real, regulated financial product: indexed universal life insurance. IUL is regulated by state departments of insurance and operates under established sections of the IRS tax code. The underlying structure is not a scam.

That said, outcomes depend heavily on setup. A Laser Fund that is improperly structured can trigger MEC status and lose its tax advantages, or be under-funded to the point that it never builds meaningful cash value. Working with a licensed specialist who designs the policy for 7702/TAMRA compliance is how you avoid bad outcomes.

How is Laser Fund different from regular IUL?

The underlying product is the same: an IUL policy. A Laser Fund is a specific design approach that maximizes cash value accumulation and minimizes death benefit within IRS 7702 and TAMRA limits.

A standard IUL sold primarily for a large death benefit will have very different internal costs and accumulation characteristics than a Laser Fund designed primarily for retirement cash value. Same product family, very different build.

Does Doug Andrew endorse this?

No. We are not Doug Andrew, we are not Missed Fortune Inc., and we have no endorsement, affiliation, or partnership with them.

We implement the same underlying max-funded IUL strategy (under IRS 7702 and TAMRA compliance) that his books describe, structured by licensed insurance specialists. The strategy itself is not proprietary to him. It is based on public IRS code sections that have existed for decades.

What does MFTA stand for?

MFTA is sometimes used as shorthand for Missed Fortune Tax Advantage. It refers to the same underlying strategy: a properly-structured, max-funded IUL policy used for tax-advantaged retirement cash value accumulation under IRS Section 7702 and TAMRA guidelines.

MFTA is not a separate product, not an account type, and not an official IRS term. It is a way of describing the tax profile that a properly-designed Laser Fund / max-funded IUL is intended to deliver.