Create perpetual income tax-free.
In this episode, I'm going to address the best way to retire wealthy.
Get ready.
It's not what you probably think.
But I'm going to share with you secrets that multi-millionaires know that you ought to
know.
So, my name is Doug Andrew.
And I've been a financial strategist and retirement planning specialist for more than 4 and a
half decades.
And I'm going to share with you some of the secrets of tax-free retirement and how to
accumulate, access, and transfer your money totally tax-free.
And it's 100% legitimate.
It's been protected in the internal revenue code for more than a century.
I teach a lot of CPAs and tax attorneys advanced continuing education about 3 sections of the
internal revenue code that had been around since the code began.
I'm going to share with you 3 tax citations.
And if this piques your interest, I would recommend that you read one of my books.
I'm going to gift you a free boook at the end of this episode.
So, stay with me here.
Because this is very valuable information that a lot of CPAs and tax-attorneys frankly
when I teach them, they sit with their mouths open.
"Whoah!
We've heard about this but we didn't know what we didn't know."
They didn't even need to know what I'm about to share with you to get their LLM degree.
That's a master's in taxation.
What's up with that?
So, get ready, I'm going to share with you some dynamic principles and strategies where
you can retire wealthy with tax-free income.
So, for more than 107 years now in the internal revenue code, currently under sections 72E,
7702, and 101A of the internal revenue code, you can accumulate money tax-free and then
access that money including all the growth, all the interest, all the dividends, however
it grew totally tax-free if you do it the smart the rest of your life if you live to
be 120.
And then when you ultimately die because none of us are getting out of here alive.
Right?
I mean out of this life.
You can transfer whatever you left behind.
Most people leave behind something that would've sustained them had they lived longer.
And it will blossom in value and transfer totally income tax-free.
Those provisions are provided under those 3 sections of the code 772E, accumulate money
tax-free.
7702, access your money.
Get income tax-free.
Okay?
And then 101A, you can leave it behind tax-free and it actually blossoms in value.
Now, this was actually a brain child of EF Hutton back in 1980 when they realize, "Golly,
in the internal revenue code, what is a sacred cow that is totally tax-free?"
Well, it was life insurance.
But most people, they bought life insurance for death, right?
Life insurance was like an expense.
Hutton said, "Wait a minute, let's rethink our thinking.
Instead of trying to get this amount of life insurance for the least premium for death,
let's flip it.
Let's take the least amount of insurance the IRS will let us get away with and put in the
most premium the IRS allows and use it for life."
Hello?
It's life insurance.
Not death insurance.
And so, by doing that, you could maximum fund an insurance contract.
Now, these came out in 1980.
It wasn't whole life insurance.
It wasn't term so they called it universal life.
And universal life was designed for living benefits more than for the death benefit.
Long story short, man, I could see this...
This is like buy term and invest the difference on steroids because it's under a tax-free
umbrella.
So, I had many clients back then who put in (let's say) $500,000.
You don't have to put in that much but I'm going to use that as an example.
$500,000, they were earning 11 and 3 quarters to 15.5 from 1980 to 1990.
It's tax-free.
Why?
Because the government wanted to make sure that people became responsible and accountable
and took ownership for their own retirement.
For their own family if they happen to die, prematurely.
Instead of widows and orphans relying on the government for welfare.
People who bought life insurance, it was tax-free when they died because it took the pressure
off of the government trying to provide for widows and orphans.
But likewise, people who used insurance for living benefits so they didn't have to rely
so much on government welfare or even social security, they said, "Any money inside of
an insurance policy is tax-free".
And so, Hutton said, "Hello?"
They squeeze down the cost of the insurance to about 1%.
When I earned 11, I netter 10.
So, 10% on 500,000.
I had clients pulling out 50 grand a year tax-free.
There's still doing it.
And you can continue to be able to experience great rates of return.
If you earn 11 and net 10.
If you earn 7, you net 6.
If you earn 15, you net 14.
And I've been doing this since 1980.
Many retirees learn about this.
And they begin to empower themselves to have tax-free income which is far better than IRAs
and 401k(s) which are only tax-deferred.
Let me illustrate.
So, you're probably already thinking, "Wow, what should I do?"
I would recommend that you seriously look at converting strategically money that you
have in other non-performing assets.
Or in places like traditional IRAs and 401k(s) where you're beginning to realize, "I'm likely
going to be in a lower tax bracket."
Yeah.
So, why are you delaying the inevitable, postponing, procrastinating paying tax until you retire?
I would recommend you roll that money out and get it into something that's going to
be tax-free from now on.
People who have done that...
My heavens!
School teachers, they increased their retirement income by double in less than 5 years by getting
money out of their 401(k)s, their 403 Bs, their tax-sheltered annuities and put it into
these insurance contracts.
They're so powerful.
I call them the Laser Fund.
The LASER is an acronym that stands for liquid assets safely earning returns.
But because this is a sacred cow in the internal revenue code, people that do this correctly,
they fund it properly.
It must be structured correctly.
And then you put money in that and it will knock socks off of traditional savings accounts
like IRAs and 401(k)s because it's tax-free.
It's not just tax-deferred.
You can link you returns to inflation.
I don't like inflation anymore than you do but it doesn't hurt me.
It helps me.
But I also get to participate when the market goes up and not lose when the market goes
down by using a strategy called indexing.
So, when you convert or strategically reposition assets, you too can accumulate, access and
transfer your money totally income tax-free.
You need to eliminate those dangers --taxes, inflation.
and market volatility by seizing certain opportunities.
So, the way that we do this is we help people to be able to strategically get money that
is not performing very well.
Maybe low-interest-yielding accounts and credit unions.
It could be money trapped in IRAs and 401(k)s.
And you want to get out of that tax trap.
You want to take care of taxes now in your current tax bracket which is likely the lowest
bracket you will ever be in.
But you don't need to spend the money.
You reposition it and let it grow tax-free from now on.
But I'm going to share with you the important elements of what we call prudent investing.
So, here we go.
So, before I share with you the 3 key elements of a prudent investment.
If this is intriguing you and you know somebody that ought to be watching this information,
share, comment, subscribe, and click that bell.
I post an in-depth answer to a financial question almost daily.
And thank you for paying attention to this channel.
I have a lot in-depth topics on this channel that relate to this topic here.
So, what are the 3 key elements of a prudent investment?
I learn this lesson the hard way.
Number 1 is liquidity.
What's that?
The ability to access your money when you need it.
With an electronic funds transfer or phone call, okay?
Most places where people have money, they can't access it unless it triggers tax or
there's a penalty.
Or it's trapped in real estate and you have to sell the real estate.
Or when you really need that equity out of that real estate, it's because you lost you
job.
You're disabled and it's...
You can't access it.
It's really hard to access it when you don't have the ability to qualify to refinance the
property and on and on and on.
So, I learn that liquidity is the number 1 reason.
Most people think, "Oh, that's down the list."
No.
Number 1.
Trust me.
Number 2, safety.
Not only safety of the institution but safety of principal.
Anytime I set aside serious cash, money I don't want to jeopardize or lose, I don't
want to lose that.
See, Will Rogers once said, "People get more concerned about the return of their money
instead of the return on their money when things get bad."
I want safety of the institution.
I want it frankly to be rated 5 or 6 notches higher than most banks and credit unions are
rated.
Okay? safety of principal is also an important factor.
That means whatever I set aside I don't want to lose.
But here's my extended definition.
Any year that I make money, I want to lock-in that gain.
I don't want to ever lose in future years money I've made in previous years.
It's called lock-in and reset.
Search this channel and you'll learn about that.
I want every year I make money to become newly protected principal.
For example, in 2017, many of clients that we helped with this strategy, they locked
in gains that year of 16%.
Some locked in gains of 25%.
Now, if in 2018..
Now, that was a ho-hum year, really the market didn't do much of anything.
But if it would've crashed like 2008, 40%, they would've not lost a dime of the money
they made the year before at 16 or 25.
I had clients that had a million bucks.
They made 250,000 in 2017 on top of their million.
If 2018 would've dropped 40%, they would've still retained their 1,250,000.
You don't lose when the market goes down.
But you make money when the market goes up.
People go, "that sounds to good to be true."
No.
I often ask people, "What you always thought to be true turned out not to be true, when
would you want to know?"
Or let's flip it.
"If what you always thought not to be true turned out to be true, when would you want
to know?"
Sooner than later, right?
You need to understand and learn this.
This is critical.
This is a game-changing principle when you're talking about your future retirement.
So, let me share with you that when we have liquidity, we have safety but then predictable
rates of return is number 3.
That means, that I want to be able to earn not pie-in-the-sky rates of return, 6, 7,
8, 9, 10 percent average.
Some years, 25%.
Some years, 0 but I don't lose.
But if I can average 7 to 10 percent, my money will double every 7 to 10 years.
We have clients who started out with 500,000.
It doubled in every 7 and a half years to a million.
A million doubles to 2 million.
2 million doubles to 4 million.
4 million doubled to 8 million.
And they have 8 million dollars now totally tax-free.
At 10%, they're generating up to 800,000 a year of tax-free income.
The IRS knows they're receiving it.
They know everything.
But they know it's totally tax-free because it's a sacred cow in the internal revenue
code grandfathered for generations.
So, what does this mean for you?
This means wherever you're starting...
See it's not where you begin with that counts, it's where you end up.
You don't need a half-million dollars to start a laser fund.
You can start by socking away 500 bucks a month.
But it means that if you started socking away 500 a month 30 years ago, you would have a
million dollars right now and it could be totally tax-free.
So, this is what it means.
Every million that you can accumulate by the time you're ready to start taking income,
that million can generate 60,000; 80;000.
Many people experience 100,000 a year of 10% payout totally tax-free.
If they live from age 65 to age 120 without depleting principal.
Most people where they have their money, it will eventually deplete.
It will be gone because of taxes, inflation and market volatility.
So, I want to empower you that why as an author, I've written 11 books.
My 12th one is coming out here really soon.
But this has been flying off of our warehouse shelves.
I would love to gift you a free copy.
It's called The LASER Fund.
And it's actually 2 books in 1.
See, this side is about 200 pages, 14 chapters that has all kinds of charts and graphs explaining
how to diversify and create the foundation for a tax-free retirement> If you learn more
by stories, you flip it over to this book.
And this one has 12 chapters with 62 in there of actual clients who have used this not only
for retirement but for all kinds of financial goals --for college funding, for their kids
and grandkids.
Real estate management, working capital for business.
How do you get your copy?
Claim it by going to laserfund.com (LASER.com).
You'll contribute a nominal amount to the shipping and handling.
I'll cover the rest and I'll fire out a hard copy to you.
There's also options in there if you like to listen and learn, watch and learn.
But I want to empower you with this information so that you can have a brighter future and
not outlive your money.