- They tax you when you are coming
down the mountain, so to speak, of retirement.
In this educational episode, I'm going to talk
about the concept of the government taxes people
who have the money.
Who has the money?
Usually older people, retirees who have money they've saved
in yet to be taxed IRAs and 401Ks.
This is what causes most retirees to outlive their money
because now they're gonna pay taxes the rest
of their life at the time in life, frankly
when they can afford it the least.
(upbeat music)
So I'm Doug Andrew, and I've been a Financial Strategist
and Retirement Planning Specialist now
for nearly five decades.
I'm 70 years old.
I started in 1974
and I've been helping people minimize taxes
and helping people redirect otherwise payable taxes
to causes they support by using sections
of the internal revenue code that allows people
to accumulate their money tax free
and then be able to access that money tax free.
And people say, how, where's that in the code?
Section 72E and 7702.
And then at the end of the day, when they finally die
whatever they leave behind blossoms and transfers tax free.
Where in the code?
Section 101A.
If you wanna learn about those, I teach
on this channel about how to accumulate, access
and transfer your money totally tax free in adherence
to those three sections of the Internal Revenue Code
by complying with three tax citations passed
in the 1980s.
TEFRA, the Tax Equity Fiscal Responsibility Act,
DEFRA, the Deficit Reduction Act, those are 1982 and 1984
and then TAMRA, the Technical
and Miscellaneous Revenue Act of 1988.
When you adhere to, comply with those tax citations
your money inside of
a max-funded index universal life insurance contract is
totally tax free.
But see what happens is people go, well, Doug
why are you so big on tax free?
Well, hello?
Because if I have $1,000,000 saved
and it's totally tax-free,
and if it's earning like I've averaged 11.17% netting
over 10%, every $1,000,000 I save
in an IUL can generate $100,000 a year of tax-free income
if I live to be 120 without depleting the $1,000,000.
If I'm in a tax deferred IRA or 401K and I have $1,000,000
in there and I need $100,000 a year, I pull out $100,000
even if it's earning 10%.
I pull out $100,000, but I need it net.
I need $100,000 net because of inflation or whatever
to buy gas, groceries, prescription and golf green fees.
In a 33% tax bracket, I have to pull out 50% more money.
Hello?
I have to pull out $150,000, pay tax of 1/3, $50,000
to net $100,000 to buy gas and groceries.
That $1,000,000 nest egg will be gone, drained dry
in 11 years.
The same $1,000,000 in a max-funded IUL,
I still have my $1,000,000.
When people who used to have $1,000,000 in IRAs
and 401Ks are outta money in the 11th year.
If they retire at age 65, they're outta money at age 76.
The chances are one in a baby boomer couple is gonna live
to be 96.
I would rather have another 20 years of 100,000.
That's 2 million extra dollars plus
still have my $1,000,000.
That's a $3,000,000 better retirement strategy
than the same $1,000,000 in an IRA and 401K.
That's why I want tax free instead of just tax deferred.
I can't believe how many people don't understand this.
Okay, so what happens and why are IRAs and 401Ks
the popular choice.
Well, it's because I think a lot
of Americans are duped frankly into thinking that
by deferring, deferring, procrastinating, paying tax
on an IRA or 401K when you get to retirement
and you'll likely be in a lower tax bracket.
That has not been true
or axiomatic frankly for over 30 years.
People who actually save money are usually not
in lower tax brackets.
If you don't understand why, it's because most Americans,
if they put money, and when I say most, 91%
of Americans actually put money into IRAs or 401Ks.
They're like following the herd with their company, 401K
and they just don't get it.
They say, oh, I'll likely be in a lower, I'll deal
with it when I get there.
And then they get shocked when I tell them, they come in
at retirement and I go bring your net
after tax IRA, 401K statements.
After tax statements?
I know they don't have them.
So I have to calculate it.
I go, I got bad news for you.
This $1,000,000 in your IRA, 401K isn't all your money.
Only about 2/3 of it is your money.
Only about $650,000 is your money.
Those other $350,000 belongs to the government.
They've had a permanent tax lien from day one on this.
This is the best savings bond the government ever came
up with for themselves.
Were you planning your retirement or Uncle Sam's?
But somehow they got duped into it.
But the reason why they're not
in a lower tax bracket is because they were killing
off their tax deductions during their earning years.
They pay off their mortgages on their properties.
They don't have that tax deduction anymore.
In retirement, you're no longer contributing money
to IRAs or 401Ks.
You don't have that deduction anymore.
Your kids are gone.
Even if they move back in as adults,
you can't deduct them anymore.
If you were a business owner and you sold your business,
you don't have those deductions anymore.
And Congress, because of irresponsible government spending
and the printing of money keeps raising taxes.
When you're spending three times more
than you're bringing in
which is what the government is doing as I speak
you've got to raise taxes
or there's a hidden tax called inflation.
This is what causes most retirees to outlive their money.
So I want to be immune
from taxes going up by converting to tax free.
And that's accomplished with max-funded IUL.
I want to link my returns to the things that inflate.
I don't like inflation anymore than anybody
but it doesn't hurt me.
I've always earned a rate of return
of about 5% greater than the cost or the rate of inflation.
Back in 1980, when inflation was 10, I was earning 15.5%
on my universal life.
And during Covid-19, 2020 to 2021, inflation hit 15%.
Most of our clients on their IUL got credited 25%
and even 61%.
If you don't know how to do this,
you need to study the book I'm gonna give to you
at the end of this episode.
But let's get back to the taxes.
See, when the government is hard up for tax revenue
which they are as I speak, where do they go to tax people?
Well, it's a no brainer.
To the people who have the money.
So I often will use the metaphor of Mount Everest.
There's been more than 4,000 people scale Mount Everest
and over 250 people have died in that attempt.
When do you think most of them died?
Going up the mountain or coming down the mountain?
Yeah, coming down the mountain.
They're taking unnecessary risks.
They're not focused or whatever.
Well see, retirement is like coming down the mountain.
If you're a golfer, it's the back nine
of an 18 hole golf game of life.
And so the government comes
after you to tax you when you have the money.
It sort of reminds me comically
of one of my favorite movies, clear back
in the 1970s, "Butch Cassidy and the Sundance Kid".
If you have never seen the movie, I would recommend
you check it out on Netflix or whatever.
But it stars Robert Redford and Paul Newman.
So we have Butch Cassidy which is Paul Newman
and the Sundance Kid which is Robert Redford.
If you don't know the history behind "Butch Cassidy
and the Sundance Kid", they were bank robbers
and they also robbed the Union Pacific Railroad.
And they did that in southern Utah and so forth.
And pretty soon, E.H. Herriman, the head guy
with the Union Pacific Railroad was fed
up with them picking on his railroad.
So he hired professional trackers and investigators
and they set up a posse to go chase
after Butch Cassidy and the Sundance Kid,
and they narrowly escaped.
Well, they decided, man,
this E.H. Herriman has hired these people.
We gotta get outta Dodge.
Well, that meant America.
So they went down to Bolivia.
Little did they know that this guy was
eventually gonna track them to Bolivia because of the news.
Okay, even back then the World News got around
after a few months.
Well, they went down to Bolivia and started robbing banks.
It was sort of comical in the movie
'cause they don't know Spanish.
And so they made a few mistakes
but pretty soon they got good at it and all
of a sudden the heat's coming down on them.
And so they find out
that this investigator is tracking them to Bolivia.
So they decide to disappear
from bank robbing and go straight.
So they hire themselves out as payroll guards
for a gold mine.
And it's a hilarious scene.
But on the first day on the job, they're going
to up the mountain, so to speak,
to get the payroll, the gold, okay?
And Butch and Sundance, okay, this is Robert Redford
and Paul Newman are back there.
And the lead guy is on a mule
and he's singing old Betsy from Pike.
And Butch and Sundance are looking around ready
'cause they want to guard him.
And they're going, I'll bet you the robbers are
behind the rocks up there on the right.
I'll bet you they're
behind the bushes of the trees on the left.
And finally, their boss turns around
and goes, "Morons, I have morons on my team."
He goes to the two professional bank robbers
and he says, "They don't rob you
when you don't have the money.
We don't have the money.
Stop worrying.
You should start worrying when we're coming back
down the mountain when we have the money.
Then start worrying."
And they were just looking sheepishly
and they just thought, oh golly, we're so stupid.
Yeah, so I don't know who it was, but they ask
a bank robber, a famous bank robber, why do you rob banks?
And he goes, duh.
Because that's where the money is.
Okay, now why did I tell you that?
Where does the government go to get money?
Tax revenue.
The people who have the money.
They rob the people who have the money.
And so when you're coming
down the mountain of life during your golden years
if you have money in yet to be taxed IRAs
or 401Ks, they're gonna come and take 30%, 35%, 40%, 50%.
The general accountability office says
they will probably have to raise taxes to as much
as 60-67% on people who have the money.
The wealthy people, tax the wealthy.
You've heard it.
So beware.
If you don't want to be robbed coming down the mountain
of life on your hard earned savings, get your money
out of those IRAs or 401Ks and put it
into a max-funded indexed insurance contract,
where it's tax free.
Because that's totally tax free, they will not rob you.
If you wanna learn more about a laser fund,
a property structured max funded index universal life
then I would recommend you study this book.
Now it's actually two books in one.
This has been flying off of our warehouse shelves.
We send out sometimes 1,000 a week.
I don't want you to miss out.
You can go to Amazon and buy it for $20
and pay another $9 or $10 in shipping and handling.
If you do that, thank you.
But I'll gift you a copy free.
But before you do it, it's actually two books in one.
This side is the left brain side
which is the one that has all the charts
and graphs and explanations if you're a left brain learner.
And it is about 200 pages, 14 chapters.
If you're more of a right brain learner, you learn
by stories and examples, you flip it over
and read this book.
This is about 100 pages, 12 chapters
with 62 actual client stories.
You can use your whole brain and read both books, okay?
But to claim your free copy, simply go
to laserfund.com or click on the link below.
You contribute a novel amount
towards the shipping and handling.
I'll cover the rest of that.
But I'll pay for the book.
I'll fire out a hard copy
to you the next day via priority mail.
And while you're in there claiming your free copy
if you'd like to listen and learn or watch
and learn, check out the audio and video formats.
You can register for
a free educational webinar we teach on a weekly basis.
You can even schedule an appointment to talk
to an IUL specialist that I mentor and oversee.
And with no cost or obligation
they can create illustrations to show
how a properly structured IUL can benefit you
in your particular set of circumstances
with your serious cash.
But you don't wanna crash coming down the mountain.
You don't wanna run out of money.
So I strongly recommend you get your money outta those IRAs
or 401Ks and perform what I call a strategic rollout.
That is explained in this book.
It's not a rollover.
(cheerful music)