Do this and you won't outlive your money.
In this episode, I'm going to address the question "What are the best financial strategies to employ
with your money?" Get ready. It's probably not what you think.
Hi, I'm Doug Andrew. I've helped people now for more than 45 years optimize their financial
assets, minimize taxes, and prepare for a comfortable retirement where they will not outlive
their money. I have discovered that most people actually outlive their money due to three big
dangers taxes, inflation, and market volatility. So, I help people eliminate those dangers or make
themselves immune from them by employing 3 strategies or seizing 3 opportunities. So,
get ready as I continue here. Hang on until the end. I'm going to empower you with a free gift,
my 300-page, bestselling book, I will gift to you absolutely free
where you can learn more about these strategies. But they are in essence to convert to tax-free
vehicles. Not tax-deferred IRAs and 401(k)s. Link the returns you're earning to inflation. I
don't like inflation any more than you do. But it doesn't hurt me, it helps me because I've always
earned a rate of return greater than the inflation rate at the time because I link my returns to the
things that inflate. So, it helps me. The third is using indexing for safety. So that you do not lose
when the economy when the market's down but you get to participate when the market goes up. How do
we do this? How do we seize these opportunities? Get ready. Here we go. The greatest opportunities
that I find about to retire people have is to do what I call a strategic conversion or a strategic
rollout out of traditional accounts like IRAs or 401(k)s. See at retirement planning
is something totally different than maybe what you did for retirement planning. Most people when
they come to me, they're way too top-heavy and yet to be taxed IRAs and 401(k)s. Sometimes 80,
90, 100 percent of their retirement resources is still in the market in tax-deferred accounts. And
I look at it and I go, "What are you thinking?" So, we have to start a strategic rollout. Get
the money out of those accounts and get the taxes over and done with and reposition that
money into something that's going to be tax-free from now on. That's called a strategic rollout.
Now, when we do that, sometimes it takes about 5 years. That's why I recommend most people,
as they look towards retirement at least 5 years before retiring, they look into this. So, I want
to empower you so that you don't kick yourself for missing out on this opportunity. So, as we look
at doing a rollout, what we want to do is be able to seize the opportunity to be able to reposition
retirement money to tax-free strategies. Now, my favorite tax-free strategy is not municipal bonds.
It's not a Roth. It's what I call the Laser Fund and I'm going to gift you a copy of my
most recent 300-page, bestselling book The LASER Fund at the end of this episode. So, stay with me.
This is what I call a strategic rollout. It's not a rollover. A rollover would be like taking money
in your 401(k) and rolling it over to an IRA and you're continuing to delay the inevitable. And
then most CPAs say, "Oh!". And then when you hit 72, take out RMDs required minimum distributions
thinking you're saving tax. Now, I can show you that you will likely pay way more in tax
if you continue to delay or procrastinate. So, you want to get the taxes over and done with
and reposition the net after-tax money into something that's going to be tax-free from now
on. You will see that you will double and even triple your net spendable income when you use
this strategy. You can read about it in my book. We've taken couples from the highest tax bracket
to a zero percent tax bracket in 5 years. I helped one couple, both school teachers save a
quarter of a million dollars of unnecessary tax on their 403 Bs and 401(k)s. Another gentleman,
we saved 3-quarters of a million of unnecessary tax. Another couple and they were physicians we
saved 1.2 million of unnecessary tax. You know what they all did? They redirected that otherwise
payable tax to causes they support for their family, their children, and grandchildren. And
they were able to be totally self-reliant and empower future generations to be likewise. So,
let me share with you the next strategy that will help you seize opportunities that a lot of people
don't know exist. So, strategy number 2 is to link your return on your investments to the things that
inflate when we experience inflation. Now, what is inflation? It's the rise in the cost of living.
When things start to increase in price like especially prescription drugs and so forth,
people begin to realize that they are going to outlive their money because the cost of living
if it goes up let's say 7.2 percent which is very realistic by the way. The cost of
living will double every 10 years. At just 5% inflation that doubles every 14.4 years.
There are many things like medical care that increases 10% a year. And 10% will double the cost
of living every 7.2 years. My heavens, what does that mean? It means if you can get by on $50,000 a
year out of your retirement accounts, now at 10% inflation, you're going to need 100,000 to buy
the same gallons of gas loaves of bread, haircuts, prescriptions. When? In about 7 and a half years.
In 15 years, you're going to need 200,000 to buy what 50,000 used to buy because it keeps
doubling. The cost of living doubles which means the purchasing power of the dollar is cut in half
every 7 to10 years. So, how do you fight that? You link your returns to the things that inflate.
I'm going to show you how you can learn how to do this with a strategy called indexing. Where you
link your returns. You can earn you know four or 5% if inflation is only one. But if inflation goes
to 3, 4, 5, you can earn 10. I've always earned at least 5.5% greater than the inflation rate at
the time because I link my returns to the things that are inflating, going up in price. It's quite
simple but you wouldn't believe how many financial advisors don't know how to do that. Let's go next
to strategy number 3. Now, before I share with you the third strategy which is so powerful,
I want you to click like, make a comment, share this with somebody who you're thinking, "Ah,
so-and-so needs to watch this". Yep. And I would love for you to subscribe. And when you do that,
just push the little bell. And you'll be notified every time I post a new YouTube educational video
on a financial topic because I do it almost daily, okay? And I appreciate your loyalty to this
channel because I'm passionate about empowering you. And so, this is really what I like to do is
to be able to uh provide incredible value. This is about you and your future. It's not about me. So,
subscribe and I want to see you on future episodes. But let's dive into this next strategy
and it's called indexing. And I'll simply explain it and then show you how you can learn more about
this strategy. So, when we talk about indexing, what we want to do is eliminate downside risk. In
other words, making sure that especially during your golden years, when the market goes down...
Why? Because it's going to go down. It's not a matter of if, it's when. See in any 10-year period
in American history since the great depression, in a 10-year period, you pluck it out. Any 10-year
period, there will generally be 7 up years in the market versus 3 down years. But from 2000 to 2010,
there were 5 down years and only 5 up years. Do you know that people using our strategies
that are explained in the book I want to gift you, they didn't lose a dime in those 5 years.
They were almost cheering. In 2008, when people for the second time in that decade lost 40%,
our clients were like, "Go! Go!" Because they weren't losing. And the first 90 days
of 2009, most of them locked in gains of 16% tax-free after not losing a penny.
They do that by using indexing. So, by using indexing with what we call a lock-in and reset
feature, you don't lose when the market goes down. When the market goes down, you may not make much
of anything but you don't lose. Will Rogers once said, "People get more concerned about the return
of their money when things are bad instead of the return on their money." So, during that worst
decade since the great depression, 2000 to 2010, 5 down years, our clients maybe didn't make much of
anything but they didn't lose. The other 5 years, they made money. And if all you did was like stick
your head in the sand or you fell asleep like Rip Van Winkle for 10 years and you woke up and said,
"Um, what happened in the last decade?" -"What you didn't hear about the terrorist attacks of 9/11?
You didn't hear about the mortgage meltdown in 2008?"
And you look at your account and the million you had 10 years earlier is now worth over 2 million.
Now, if you don't know how to calculate that, if you double your money in 10 years,
10 years into 72 means you've got an average of 7.2%. Yep. Using indexing people averaged 7.23%.
A million was worth 2 million when most Americans barely were about to break even. They barely had
the million they started with 10 years earlier. So, that's indexing. You don't lose when it goes
down. They made money instantly when it started back up again. Now, if this sounds too good to
be true... No, a lot of times people will say that and they'll discount it. And oh, that sounds
too good to be true. Well, it's interesting in my life. A lot of things sounded too good to be true.
And if I would have ignored them, I would have missed out. I don't want you to miss out. So,
here's how you can learn more so that you can be empowered and utilize these 3
powerful strategies. What are they? Okay. You want to convert to tax-free vehicles,
you want to link your returns to the things that inflate and you want to use indexing for safety so
you don't lose when the market goes down. You make money when the market goes up. So, how can you
learn more about this? Well, I would encourage you to study and learn. I'm so passionate about this
that I have written a 300-page book in conjunction with my 2 sons who have been helping people employ
these strategies for over 2 decades. And I want to gift you a free copy of this book. So, how can
you claim your free copy? It's actually 2 books in 1. This book here (white) is about 200 pages,
14 chapters with all kinds of charts and graphs and explanations. If you're a left-brain
learner, if you are a right-brain learner you learn by stories examples and metaphors,
you flip the book over to this one. This is about 100 pages, 12 chapters with 62
chicken soup for the financial soul stories about how the laser fund. LASER means liquid
assets safely earning returns. And you'll read stories in here about how people have harnessed
these 3 strategies to dramatically increase the liquidity safety and rate of return
on their serious cash. How to diversify and create the foundation for tax-free retirement? Now, you
can go to l-a-s-e-r, LASERfund.com. But just click on the link below and you can go straight there.
You contribute a nominal amount towards the shipping and handling. You don't have to
pay 20 bucks for the book retail. I'll gift it to you. I'll send out a copy and you begin to
study and learn. And then search this YouTube channel 3-Dimensional Wealth. Subscribe and I
have over 350 different educational videos that will help you understand this book. You can even
go through a master class if you want of every single chapter if you like to watch and learn.