The third of five ways to stack up an extra million bucks. In this episode,
I'm going to address the question. How to use systematic accumulation
and I'm going to show you how to do it totally tax-free.
So, my name is Doug Andrew, I've been a financial strategist a retirement planning specialist now
for north of 48 years and I've been very blessed in my life to have authored 12
books thus far and we had a new york times and wall street journal number one bestseller in 2007.
But my most recent book that is just flying off of the warehouse shelves is called the laser fund
how to diversify and create the foundation for a tax-free retirement. But also, how to have a working
capital account and in this book, I talk about several ways to accumulate a million, 5 million,
10 million. But I love showing my audiences when I speak how to stack up an extra million
bucks. So, in this episode, get ready. I am going to show you how just with systematic accumulation you
can set aside a monthly amount out of your income if you don't have a lump sum and how? By doing that,
you can accumulate an extra million on top of whatever you're doing with your 401k or whatever
or maybe in place of your 401k because this is far better than a 401k and how you can accumulate over
a million bucks in 10 years using very predictable safe rates of return and as I show you this I want
you to understand the concept that whenever you accumulate money, you'll be far better off if it
accumulates tax-free, not tax-deferred, and that you can access it tax-free in case you need it. So, get
ready, there's no penalties when you access money. You don't have to time the market or anything.
I will explain all of that in this episode. So, here we go. Now, if this is already intriguing you
I would uh share it with somebody that you think ought to benefit from this. But let's talk about
systematic accumulation. Now, the convenient time to set aside money never comes to anyone. One of the
secrets to wealth accumulation is having a system. That's why we call it systematic accumulation.
To learn to live on less than what you earn. That's really the traits of those who begin to arrive
at the state of financial independence. So, let's say you are earning enough money and you're able
to take care of your needs and what have you and you finally are disciplining yourself to be able
to sock away a certain amount on a monthly basis. Now, I don't care if it's a thousand a month, you
know five thousand a month, ten thousand a month. Some people say, "Wow, I don't have that much", it's
not what you begin with that counts is what you end up with. But here's the key, so many times
people will participate in their employers 401k and they will put in maybe up to the max
maybe 15%. Because you can only put in a certain dollar amount or a certain percent of your income
your employer might match you whatever. But when they learn about my favorite instrument that
I'll disclose at the end of this episode that I call the laser fund. They go, "That's way better
than an ira or 401k", yep and so sometimes they'll reallocate underperforming assets or a 401k or an
IRA that is subject to market volatility and taxes down the road when you retire you're
gonna have to pay tax on that stuff. Let's say you want to accumulate your money tax-free.
You want to be able to access it tax-free not pay tax when you retire like you do on IRAs or 401ks
and if you happen to die that anything you leave behind will blossom or increase in value
and transfer tax-free to your heirs, your spouse, your kids, your grandkids, maybe a church a charity
or whatever. Now, there is only one thing in the internal revenue code that allows you to do that
and that is a max-funded insurance contract and not just any. You must structure it correctly and
fund it properly and I use IUL indexed universal life where you're taking the least amount of
insurance and putting in the most money the IRS allows and it will turn into a tax-free cash cow.
This is where I have earned average rates of return since 1997 of 9.62%. Let's just round
that down to 9.6. Now, if you understand the rule of 72. Now, before I tell you what the rule of 72 is
is if this is resonating with you be sure to subscribe to this channel.
Because I have a lot of educational videos here that'll blow you away. But the rule of 72 says,
whatever interest rate you're earning let's say on your money, you divide that number into 72.
So, let's say you're earning 5%. Your money will double if you started out with a lump sum.
Okay, this is for lump sums. Your money will double in about 14.4 years. If your money sitting in a
bank or credit union when you're watching this episode at one percent interest it's going to
take 72 years and you're going to have to pay tax as you go. So, you're not going to even get double
your money back because they're going to make you pay tax on it every year. That's the worst
way to save but the most common way Americans say. If you sock away money you divide the interest
rate you're earning into 72. 8% into 72 your money doubles every nine years.
Nine percent it doubles every 8 years. 7.2% your money will double every 10
years. If you're earning 10% it will double every 7.2 years. So, at 9.6% if I started out
with a lump sum, it will double in seven and a half years. So, if I sucked away a hundred grand it'll be
worth 200 grand in seven and a half years 500,000 will double to a million in seven and a half years.
A lot of people don't have lump sums. So, they have to use systematic accumulation. So, let's say that
you discipline yourself and you reposition where you're putting money that's not performing very
well like an IRA 401k or a bank or credit union earning less than 1%. You can
extrapolate from my example whether you have more money that you can save systematically or less.
Let's just use five thousand bucks a month. So, if you take five thousand dollars a month
and you put it into an instrument that allows you to accumulate your money tax-free and anytime you
need it you can take it out tax-free. You don't have to wait till you're 59 and a half. There's no
IRS penalties in my favorite instrument called the laser fund. five thousand dollars a month that's
60,000 a year. You do that for 120 months or 10 years. Now, 5,000 a month at 9.6 interest for 10 years
will grow to one million one thousand eighty-seven dollars, okay. That's one way to stack up a million.
It's actually pretty simple, five thousand bucks a month nine point six percent you'll have a million
bucks in ten years. This is really the simplest way to do it if you don't have a lump sum to start
with. Now, I have other episodes on this channel that talk about how to sort of kick start that
by using assets that maybe you don't even know you have. But if you don't have any other assets start
saving whether it's 500 a month, 1,000 a month , or 5,000 or 10,000 a month. Extrapolate from my
example. But at just 5,000 a month at 9.6 you'll have a million dollars. But that million dollars
if you use the laser fund will be totally tax-free. Now, a million bucks earning 9.6 percent
would allow you to pull out 96,000 a year without depleting the million dollars.
Ninety-six thousand is eight grand a month. You pull out eight thousand bucks a month tax-free
in retirement or whatever and it'll last as long as you do if you live to be 120,
it's tax-free. This is not a loophole. This is a sacred cow in the internal revenue code that's
been protected for over a hundred and eight years in three sections of the code section 72E
7702 and one on one eight. This is all explained in my book and so when you understand this concept
you don't have to time the market. Your money is not at risk in the market. You're using a strategy
called indexing where you participate when the economy and the market is doing well going up.
But if the market crashes which it does probably every you know three to eight years on the average
you will not lose and people go, "Is this legit?", you bet. So, how can you learn more?
The first step is to claim your free copy of this book the laser fund. This will teach you how to
diversify and create the foundation for a tax-free retirement. It's actually two books in one. This
white covered site is 200 pages, 14 chapters, with all these charts and graphs and explanations
and you'll see how something like five thousand, a month a thousand a month, lump sums grow at safe
predictable rates of return in that seven to ten percent range. I've actually now averaged over
11, but ever since 1997 when indexing was first introduced I've averaged 9.6. You'll see how there.
Now, if you're not sort of into numbers you're into stories you simply flip the book over to this side
and this one has about 100 pages with 12 chapters with 62 chicken soup
for the financial soul stories. If you want to use your whole brain right brain and left brain
I would recommend you read both books. But this will be your starter kit to becoming a
millionaire and this episode is just one of five ways on this channel how you can stack up an extra
million dollars that can generate at the end of the day, you don't have to wait till you retire.
Eighty, ninety thousand, eight grand a month of tax-free income without depleting principle
based on actual history. So, to claim your free copy of the laser fund book go to
laserfund.com... or click on the link below. You contribute a nominal amount
towards the shipping and handling, I'll cover the rest of that. I'll pay for the book and
fire it out to you. There's also options there to listen and learn, watch and learn. There's even
areas where you can join us for educational webinars. But here is to your brighter future.