Invest lump sums for tax-free income. In this educational episode, I'm going to
address the question "How to invest a large lump sum for retirement?" Now, this
is interesting. You would be surprised how many people have come to me during
my 46-year career as a financial strategist and retirement planning
specialist. "I have a million bucks, I have 10 million." Recently I had a gentleman
say I have 400 million. What do I do with this money for retirement?
You're about to learn whether it's a 100 thousand or four 400 million
what my advice is.
Hi, I'm Doug Andrew. I'm in my radio studio right now. I record and broadcast
a weekly radio show called 3-dimensional wealth radio. And I've
been blessed to do this now for 12 years on several major stations. Primarily now
on the west coast but they have been broadcast in Chicago, Orlando and
everywhere. So, to my listening audience, what I love to do in a one-hour show is
answer 4 specific questions that I have been asked anywhere from 30 to 300
times a month for the last several months. And that's what I do on this
YouTube channel. So, let me tell you what I say when people ask, "How do I invest a
large lump sum for my retirement?" Now, a large lump sum is relative, right? I
remember years ago a lady named Beverly. She came to me with $200,000 that she
had worked very hard for. So, that was a large lump sum for her. It still is. And
she said, "You know what? I want to sock this away. I'm not gonna touch it for 20
years." I said, "Well, that sounds good." So, I recommended my favorite vehicle which is
what I call the laser fund. It's a max funded tax-advantaged indexed universal
life insurance contract where I have historically earned net rates of return
after all costs and fees averaging 10.07% for the last 25
years. So, that's where I put her 200,000 in a lump sum. What was
so ironic, even though she intended not to touch it for 20 years, she called me a
couple of months later from California. And she was in this horrible accident.
She was recuperating. She says, "You know Doug how I said I wouldn't touch this
for 20 years? I need about a 120,000 of that." I said, "Oh, okay."
And so, she called a couple of days later. She said, "How long will it take to get
that to 120,000?" Now, back then, it was pre.. You know the Federal Express
Delivery checks and all that kind of stuff. You can tell how old I am.
I said, "Beverly, have you checked your mailbox?" She says, "I'm still in the
hospital. I'll have my son go out and look right now." He went on says, "Mom,
there's a check in the mail here 420 grand." Now, see I want wherever you put
a large lump-sum, I want that to be liquid. Now, you never know what's gonna
happen. So, for Beverly, it was important to have that liquidity even though she
didn't think it was. I was so grateful I did that. But recently I had a gentleman
asked "What would I do with 400 million?" Now, he's a savvy investor. He's a
billionaire. He knows that if he invests 400 million dollars at 8% to 10% rates
of return which he knows historically, that's what we've done. He can even
borrow 400 million at his net worth at 3 or 4 percent. And if he borrows it 3% in
his tax bracket, it's less than 2% net. So, if he's going to earn 8 or 10 with me,
this is very, very smart. Now, whether it's 200,000 or whether it's
400 million or anywhere in between, if you have a large lump sum,
where did you get it? Did it come from a settlement, from an accident or from the
cell of a business. Or are you taking money out of the market or you realized
profit from some venture. This is where lump sums come from. And what I always
tell people is, "Hey, I would recommend that you make all of the growth on that
money from today forward totally tax-free." They go, "Whoa, well that sounds
good. Where would that be." And when I tell him a max-funded, tax-advantaged
insurance contract, they go, "What? I've never seen one do that." And I go, "Well
then, you haven't seen one structured correctly." I create an illustration and I
use actual historical rates of return that I have achieved and many of our
clients have achieved who threw in lump sums of 100 grand a year for 5
years. 500 thousand a year, a million a year for 5 years.
And they see how it grew at average rates of return in the 8 to 10
percent range. But many years those people have earned as much as 16 and 25.
Other years when the market crashed 40%.
They didn't make anything that year. Maybe, but they didn't lose. That's
because I use Index Universal Life and I teach what
that is in other episodes that I want you to search. But what I'm trying to say
is that whether it's a half a million or a million or 2 million or 10 million,
just do this: Take 10% of whatever your lump sum is and that's the annual
tax-free income that lump sum can generate in easily less than 5 years.
When you reposition that money that lump sum into a properly structured maximum
funded insurance contract and it's done correctly by a professional who knows
what they're doing. And it will generate that kind of tax-free accumulation and
tax-free growth. If you don't need the income, you can wait then if you set
aside a million let's say in one lump sum, you have to do that to where it
funds the insurance contract in compliance with IRS rules known as Tamra.
By doing that, the million actually strategically goes in 200 grand
a year. And after 4 years and 1 day, that million can generate 100
thousand a year of tax-free income for as long as you live. And when you die, it
blossoms and transfers income tax-free. When I show that to people they go, "How
can you do that?" Well, I've been doing this for 46 years
for thousands of people. I know it's not mainstream advice because most advisors
are not taught how to do this. And so, I actually call it The Laser Fund. And I've
written several books but my most recent book is titled The Laser Fund. And I'll
share with you here in a moment how you can get a free copy of this. But just in
your mind, whatever lump sum that you think you may be getting or that you
know you have and you don't want to stick it in a bank earning 1 or 2
percent, how pathetic is that? Or it's in the market and you want to get it out of
the market, you don't want that volatility. You don't want to create
taxable rates of return. You would rather have more predictable tax-free rates of
return. Then make sure that the lump sum passes the laser test --liquidity,, safety
rate of return and tax-free benefits. This book will help you do that. So, let
me show you you can get a free copy of the laser
fund so you can learn. And then in the book you can understand how to find an
adviser who knows how to do this correctly because I point my students to
only a very small handful of advisers who know how to do what I'm talking
about. So, as you can see here, these are some of
my eleven books that I've written so far. I'm about to release my twelfth book.
Book number 11 is titled The Laser Fund. It's actually 2 books in 1. This
book, this side is about 200 pages comprised of 14 chapters that have all
kinds of charts and graphs and explanations of how to accumulate access
and transfer your money totally income tax-free. If you learn more
right brain buy stories and examples, you flip over and read this book. And this
direction is 100 pages, 12 chapters with 62 actual client stories
that will give you examples of lump sums. There's a chapter in here just about
lump sum investments. If you want to use both your right brain and left brain, I
suggest you read both books, okay? This book retails for 20 bucks. But I want you
to claim your FREE copy one per visit to this website. Go to laserfund.com.
L-A-S-E-R, fund, ".com". You pay $5.95 shipping and handling.
I'll buy the book it retails for 20 bucks. It's not about selling books. This
is about you getting the information you need. I'm passionate about empowering you
with education. You pay $5.95 shipping and handling. I'll send out a
free copy to you. You'll also have the option to get audio versions and also
other video training so that you'll know what to do the next time you have a lump
sum to protect it so that you can continue from the moment you've set it
aside to accumulate the money tax-free, access income tax-free and when you die,
you let it blossom in value and transfer income tax-free.