- Best advice I've received,
don't ever own anything that eats while you sleep.
I'm Doug Andrew, and I'm going to reveal
how to stop taxes and inflation
from eating away at your hard earned savings.
Get ready.
I love that saying, it was taught to me by Dan Sullivan.
(upbeat music)
So as mentioned, I'm Doug Andrew,
I've been a financial strategist
and retirement planning specialist now
for nearly five decades.
And one of my mentors
and very close friends is strategic coach Dan Sullivan.
I met him in 1992 and I was in his mastermind groups
for over two decades and we became very close
and he has a lot of words of wisdom.
And he told us one day,
don't ever own anything that eats while you sleep.
Now it's not only amusing
but most people immediately think, oh, don't own a horse
or animals that continue to eat while you sleep,
well yes, but I took that saying several steps further
to what I did as a financial strategist.
And so I started clear back in 1974
helping people to optimize assets and minimize taxes,
prepare for a comfortable retirement.
And I quickly learned that there were three big dangers
that caused most Americans to outlive their money
because these dangers eat 24/7
at people's hard earned savings,
especially during the golden years
and they eat it at such a fast pace
that they run out of money.
And so when Dan Sullivan shared that, I thought, wow,
yeah, you don't wanna ever own something
that eats while you sleep, taxes.
Okay. Inflation. Market volatility, so to speak,
sort of happens 24/7 in a way.
Yeah, I know the stock market isn't open,
I'm talking about when you are vacationing,
when you're not working,
when you're not tending your investment accounts,
you can lose money due to market downturns
or inflation or taxes or whatever.
So the metaphor really is appropriate.
So as I go through and share with you these dangers,
if you have money and traditional IRAs are 401ks, okay?
Most people I think are duped into putting pretax dollars
or tax deductible contributions into IRAs
and 401ks thinking or being told
that they're gonna be in a lower tax bracket
when they retire. Now folks,
that has not been true or axiomatic now
for more than 30 years.
Most people who save, the savers,
are not in lower tax brackets when they retire. Okay.
I've hardly met anybody that is in a lower tax bracket
when they retire, if they were a saver,
they're in as high or higher tax bracket than they ever were
during their earning years, even school teachers,
if they were saving in 401ks and 403bs
and tax sheltered annuities, and what have you,
they continue to defer
but they're sort of going down the highway of life
trying to achieve the destination,
let's say of financial independence.
And they've sort of got one foot on the gas pedal
and the other foot on the brake pedal.
And they didn't know they were doing that.
In other words, they were socking away money
on the gas pedal in a tax deferred IRA or 401k
with pre-tax dollars.
And the other foot was on the brake pedal.
What was that?
They were paying off or getting rid of their deductions,
paying off their house.
Most people don't have those deductions in retirement.
Their children are out of the nest.
If they move back home, you can't deduct them anymore.
You're not contributing money
to IRAs or 401ks anymore in retirement.
So you don't have that deduction anymore.
If you were a business owner in retirement,
you usually don't have those deductions anymore.
And Congress because of irresponsible spending
and the printing of money, they keep raising taxes.
So we find that most people are in as higher tax bracket
during their golden years
as they were during their earning years.
And then they have this track.
And so they realize that was not the smartest way to go.
It took the financial services industry
until just about a decade to go to finally admit,
hmm that was the wrong advice, but they don't wanna be sued
'cause they're supposed to be fiduciary
looking out for your best interest.
And yet they've known for 10, 15, 20 years,
if they look at your statements,
you're not gonna be in a lower bracket
and they kept telling you to keep deferring.
They weren't looking out
for your best interest in my opinion.
So savvy people began to realize it's better
to get the taxes over and done with sooner than later.
And so they would convert to a Roth.
In fact, when Roths were first introduced in 1997
by Senator Roth, it wasn't really for our benefit.
It was for the government's benefit.
The government was hard up for revenue
and they said, you know what,
we don't wanna wait until people retire
to start getting tax revenue off their IRAs or 401ks,
we need to somehow incentivize people
to get it out and taxed sooner than later.
So we'll waive the 10% penalty
if they'll roll it over to a Roth
and it will trigger tax and we'll get a windfall of revenue,
which they did, they did it for them,
I'm not saying it's not a good idea for some people
but you're paying the tax
and then you're enjoying tax free access later on.
If you've watched very many episodes on this channel,
you'll learn that I've never owned an IRA or 401k,
never will, because it's inferior
but I've never owned a Roth, IRA or 401k and never will
because it's also inferior.
Roths only have two benefits.
You fund a Roth with after tax dollars
but it accumulates tax free
and you can access the money tax free.
Now I've been able to do that
with Max Funded Index Universal Life Insurance,
actually now for over 108 years,
it's been a sacred tax free cash cow
in the internal revenue code.
Did you know that?
But when I put money into a Max Funded IUL
and I structure it correctly and fund it properly
it is what I call a LASER fund.
LASER is an acronym
that stands for liquid asset safely earning returns.
And so when you do it properly,
it knocks the socks off of a Roth
because it accumulates your money tax free.
You can access it tax free
but I can put in huge amounts, 300,000,
400,000 if I want, I don't have to. I can put in 30,000,
I can make up the difference anytime I want in the future,
you cannot put in that much money into a Roth,
in fact, if you make too much money,
you can't even qualify for a Roth.
If I put in 300,000 in a given year
and a month later I need 200,000 back,
I can access that, there's no 10% penalty by the IRS,
with a Roth, you have to wait five years
until you're 59 and a half or whatever.
No, you don't have those strings attached
with a Max Funded Index Universal Life
but I can use indexing to participate
when the market goes up
and not lose when the market goes down.
With most Roth's, your money is in the market
and you will lose as much as maybe 40%
like people did in 2008.
Clients with IUL didn't lose one dime in 2008
when the market went down.
So I can use indexing to make money when the market's up
but not lose when the market goes down.
Check out videos on this channel about indexing
but at the end of the day,
Roth's don't blossom when you die, IUL does.
My LASER funds, if I died tomorrow in an accident, I'm 70,
every million I would have would double to 2 million
and transfer tax free to my spouse,
my kids, my grandkids, a church, to charity,
people say, hmm, yeah, my Roth doesn't do that.
But how much does that cost?
And I go well, nothing's free
but it doesn't cost me anything.
It's coming along for the ride being paid for
with a minuscule portion of money that you are shelling out
in unnecessary tax.
You have to earn 15% to net 10
in a tax deferred IRA or 401k.
I only have to earn 11 to net 10.
That 1% is the cost of the insurance
that the IRS says has to be there
in order for it to be tax free. Okay.
So let's go back and talk about the big impact,
when people finally retire
and they have a million dollars saved,
the three big dangers are taxes.
If they pull out seven and a half percent a year,
75,000 a year, to not deplete their principle
if they're only earning seven and a half,
they're not netting seven and a half.
They pull out 75 they're netting, 50,000 in a 33% bracket.
If I pull out 75,000 out of an IUL policy,
I can do that without depleting principle
based on actual history, I net 75.
If you need 100,000 out of an IRA or 401k, okay,
a year, you have to pull out 150,000,
pay tax of a third 50 to net 100.
A million dollar nest egg earning 10%,
would be totally drained dry in 11 years.
Whereas an IUL policy, you pull out a 100,000 a year,
it's tax free, you would still have your million bucks
at the end of that 11 years, it is far superior.
So the thing that is eating away while you're sleeping
or you're retired and not working,
taxes, inflation. The current rate of inflation,
as of the recording of this episode,
based on the CPI, consumer price index, is over 9%.
Now folks that will double the cost of living
every eight years.
But when they say the CPI is nine, I triple that,
because the actual cost of gasoline
has gone up 50% or 60%, used cars, 20%,
food in the 15% to 20% range,
they changed the way they calculate the CPI
'cause they can't afford to pay social security recipients
the real cost of living.
So they actually compare the cost
of maybe an eight ounce filet mignon steak last year
to eight ounces of hamburger this year.
So when they say the CPI, the inflation rate went up nine,
you ought to double or triple that at a minimum.
So from 2021 to 2022,
the actual rate of inflation was far in excess of 15%.
You know what most of our clients with IUL earned that year,
25%, 61%, even 158% because you have to link your returns
to the things that inflate.
I don't like inflation anymore than you do
but it doesn't hurt me, it helps me.
So when taxes, inflation
and market volatility are eating away at your savings,
that will cause you to outlive your money,
I want you to be able to sleep without that erosion.
That's why I strongly recommend you reposition assets
out of the market, out of IRAs or 401ks
using strategic roll outs not rollovers.
You can learn about it by reading my book
and put it over into a portfolio of LASER funds
and then you can sleep because nothing
like taxes, inflation and market volatility,
will be eating away at your hard earned nest egg.
Does that make sense?
So to learn more, claim your free copy of the book,
The LASER Fund, simply 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 cost.
I'll pay for the book.
I'll send out this 300 page book.
It has all kinds of charts, graphs, explanations,
62 actual client stories on this side of the book.
There's two books in one and there's options in there.
If you want to listen and learn, watch and learn,
you can register for educational webinars
that we hold on a regular basis
but you can even fill yourself in for an appointment
at no obligation or cost to talk to an IUL specialist
to see how a LASER fund may benefit you
so that you can sleep soundly when you retire
and not outlive your money.
(upbeat music)