Link your returns to the things that go up in price.
In this episode, I am going to address how to earn returns that will outpace inflation.
So, I'm Doug Andrew and I've help people optimized their financial assets, minimize taxes and
outpace inflation now for more than 47 years.
What I'm about to share with you will perhaps blow you away.
Because I've trained over 3,000 CPAs, tax attorneys, financial advisors, and when I
show them how they can help their clients actually have inflation helped them instead
of hinder them of time they sit this with their in the headlight look in their eyes
and they go, "How come I've never learned about this before?", well, it's not taught
in traditional colleges and universities or even in advance courses.
I know because I have taught advance continuing education into CPAs and tax attorneys and
when I show them what I'm about to teach you they are just blown away.
So, would you prefer that I'd be honest or general?
Now when I ask that question most people say I want you to be honest.
Now, this is not a political agenda here but I'm gonna be honest with you because so many
times we experienced inflation because of irresponsible government spending the printing
of money.
Because most politicians do not understand economics and its basic economics and yet
somehow they think that if they can just give away a lot of free stuff they'll get elected.
But then they have to pay for that and they two options, print more money which is what
causes inflation, or taxed people higher and higher taxes.
And so, these are huge dangers that a lot of retirees to outlive their money.
So, let's talk about what happened with the government calculating inflation now for the
last several decades.
So, in order to understand the negative impact of inflation.
So that we can teach you how to outpace it earn raise of return equal to our greater
than the inflation rate.
I want you to understand the rule of 72 math.
It helps you calculate things just in your head when you understand the rule of 72.
So, let's go through an example using a rule of 72 math.
Let's say you're earning an average of 7.2% coz that will make it simple.
Now, people say we already earn 7.2%.
Do you know that during the worst decade since the great depression I am talking about, from
the year 2000 to 2010.
If you had your money and what my favorite vehicle is I call it the laser fund.
You would have earned 7.2% if you stuck your head in the sand after 10 years.
It just went to sleep like ribband wrinkle in the year 2000 and you woke up in the year
2010 and you ask, "So, what happened while I was dozing to sleep for 10 years", well
people go, "You mean, you don't know about 9/11, the September 11 tourist attack and
how the economy people lost 40%?", "No", "You don't remember the mortgage meltdown in 2008?
Most Americans lost 40% again for the second time in that decade.
We call it the lost decade people aren't back to break-even yet", they go, "Really?
Well, I have a million-dollar when I fell asleep.
You mean I'm only gonna have 630,000 right now?", that's what happens at the end of 2010
and then you look in your account and if it was the laser fund your million would have
double to 2 million.
What is that math?
Rule of 72.
If your money doubles, a million double to 2 million, a hundred thousand doubles to two
hundred thousand, and in 10 years you divided 10 years into the 72, and that gives you the
compound of interest equivalent.
So, that's what called rule of 72.
But let's just say you're earning 7.2% your money will double every 10 years.
So, if you stocked away 125,000 in year 1 and you never added a dime rule of 72 your
money will double every 10 years.
So in year 10, it doubles to 250, in year 20 it doubles from 250 to 500, and it doubles
from 500 to a million, double...okay?
So far so good.
This is what happens in retirement.
People have a million-dollar nest egg and a lot of people have a million-dollar nest
egg by the year 2000 and let's say it's earning 7.2%.
So, 7.2% theoretically means you could pull out your interest 72,000 in annual income,
right?
Well, you got to pay tax on that if it's an IRA or 401k people say, "Wait a minute, I
have to pay tax on my IRA 401k withdrawal?", yeah, that's been the understanding for years.
A lot of people they almost stick their head in the sand and deal with it at that time.
Because they're told, "Oh, you're likely to be in a lower bracket", no, most people is
not in a lower tax bracket when they retire.
So, let's say between federal and state tax should you pay a third in tax that's 24,000
out of the 72.
Now, most people say, "I won't be in a 33% bracket", you'll probably be in a higher bracket.
There's people in California that are in 40 and 50 percent bracket.
Especially if his income is on top of other income.
Maybe real estate, rental income, or your school teacher pension, social security, and
so forth.
Okay, so let's just keep it simple, most Americans pay about a third in tax.
So, 72,000 withdrawal you pay 24,000 in taxes you net 4,000 a month to buy gas, groceries,
prescription or golf cream fees.
So far so good?
Let's adjust this for inflation.
So, a million dollars at 5% inflation.
Now, you divide 5% inflation to the number 72 and it will tell you how fast the cost
of living will double.
Is that making sense?
So, it doubles in 15 years.
That means, 4,000 a month in 15 years will only buy what 2,000 a month buys today.
It means I'm gonna need 8,000 a month twice as much money to buy the same gallons of gas
and loaves of bread that I used to buy for 4,000.
Let me ask you a question if you now need 8,000 a month you're gonna have to pull out
more money out of the million-dollar nest egg that you're earning in the interest and
what's gonna have in the nest egg?
It's gonna deplete.
You'll be out of money within about 11 years.
Hold on were headed for higher inflation than 5%.
Rule of 72 math inflation at 5% the cost of living double every 15 years.
Inflation at 7.2% double every 10 years.
Inflation at 10% I remember back in 1980 right after Carter cost inflation to go up to 13%
and then Ronald Reagan took over.
At 10% it doubles every 7.2 years.
But we had 13% inflation with Carter where it peaks, at 12% it doubles every 6 years.
You will twice the income to buy the same gallons of gas, leave of bread, haircuts,
whatever, that you use to buy just 6 years earlier.
Now, people usually say, "Doug, the consumer price index says inflation is only 4.2%",
they been using smoking mirrors.
Are you ready for the truth?
Now, before I share with you how the government's new method of measuring inflation.
When they say 4% it's over 11% the way they used to calculate it.
Before I show you that, if this is intriguing you be sure and share, click like, post a
comment but subscribe to this three-dimensional wealth channel, why?
Because I post an in-depth answer to a financial question like this almost on a daily basis,
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But stay with me because I want you to claim your free copy of my most recent 300 pages
best-selling book.
I will pay for the book, you contribute a nominal amount towards the shipping and handling
and I'll fire up a copy for you and you will understand how you can empower yourself to
outpace inflation with your serious cash.
So, here's the truth about inflation.
I read about a 17-page report recently and you can Google this on the internet.
Recently, from the recording of this video today.
We've had CNBC, Barrons, Fox Business, Bloomberg, Forbes, New York Times, and Market Watch all
talking about inflation.
It's climbing up to 4.2% which is significant but people go, "Well, 4.2% isn't that bad",
but then Americans go to the gas pump they go, "Wait a minute", in less than 100 days
gas has gone up 50% ins some areas of California 100%.
People will say, "Gas was $2 a gallon now it's 3", some say, "Well, it's 2 now it's
4 where I'm at", hey it's just the beginning or beef or food.
These types of things are going up in price by 50 to 100 percent and yet the government
comes on, "Oh, inflation is only 4.2%", well what did they do?
They change the way they report the consumer price index clear back in the 1980s and '90s,
why?
When they started looking at the inflation rate back during the Carter years.
As I mentioned, inflation topped out at 13%.
They said, "Wait a minute, we are paying retirees social security benefits", social security
is supposed to be increased every year based on the CPI, consumer price index and they
went, "If we have to give retirees 10, 11, 12, 13 percent increases in social security
benefits.
Were gonna be broken even faster than we're going broke in social security", and so they
said, "We're gonna change the way we calculate inflation so that we don't have to give social
security recipients increases equal to the real inflation rate.
We're just gonna change the way we calculate it and they probably wouldn't figure it out",
this is the 17-page report it's a white paper and since the early 1980s, they did this to
understate the cost of inflation.
The CPI no longer measures the cost of maintaining a constant standard of living.
Did you know about this?
It no longer measures full inflation for out-of-pocket expenditures.
With the misused cover of academic theory, politicians forced significant underreporting
of official inflation.
So, as to cut the annual cost of living adjustments to social security.
Politicians look to expand further the concept of artificially suppressed... they're not
done yet.
They still wanna do this and so they're making adjustments.
What does this mean?
They're used to measure inflation with what they all basket of goods.
They would have a basket of goods.
It could be haircuts, it could food it could be meat, it could be produced.
So they would have a basket of goods and they would measure the price or the cost increase
of that identical basket of goods from year to year.
They haven't been doing that method for a long time.
They wanted to calculate it instead of maintaining the same standards of living.
They had new methods in computing the consumer price index inflation using the substitution
method.
I'll just simplify it here.
It is assumed that price of the stake.
They used to compare [inaudible] one to [inaudible] the next year, same greater beef.
Do you know the government can change to hamburgers if they want.
They can compare [inaudible] to previous year to the cost of hamburgers this year.
Coz it still red beef it's red meat.
Did you know that?
It's not apples to apple comparison and they can do this smoke and mirrors and so when
they report 4.2% inflation which is what they reported.
In the April of the year 2021, it was really over 11% and that's before beef went up and
gasoline continues to go up.
So, if you look at this chart this is what the government has been reporting since the
1981 inflation rate is.
When the true apples to apple comparison basket of goods, this is what the inflation rate
really was.
This is so they can only pay you a certain increase on your social security benefits.
Here's another one, it shows the way they get to report inflation is way less than it
really is.
So, people go we can't make it anymore.
If inflation is only 3% or 4%, why is gas 50% more or 100% more?
I don't get it.
It's because of this smoke-in mirror method.
So, folks, I'm gonna show you the greatest opportunities that you can see so that you
can outpace inflation.
So, as a financial strategist, I've helped thousands of people make them immune from
these dangers.
How to outpace inflation you can learn about in my most recent best-selling book its called
the laser fund.
This is where I put serious cash.
This is where I recommend many retirees roll their money out of the RIA 401K and put it
in the laser fund.
This is not a rollover, that's not going from the frying pan to the fire.
You wanna do a rollout and get the taxes over and done with and convert to tax-free.
So, I love this because you convert it into a tax-free vehicle.
You are immune from taxes going up.
But if you're linking your returns to the things inflate.
So that when inflation goes to 5 you can earn 10 or more.
I have many times when inflation goes to 10 you can earn 15 back in 1980.
When inflation was double-digit I was earning 15 and a half percent.
Some years I've earned even 25% or up to 61% as many people have been using the laser fund.
It also protects you from market volatility by using what is called indexing.
Now, in the episode, I can't go through all of those but this is where you can learn.
If you go to laserfund.com and you contribute a nominal amount towards the shipping and
handling.
I'll fire out a copy to you and there's options there to listen and learn, watch and learn.
But I'm passionate about helping you protect yourself, your hard-earned money from the
negative impact of taxes but also inflation how to outpace inflation when you learn this.
This will help you not outlive your money, you'll be able to stay ahead.
You won't need twice or four times as much income in less than 15 years to buy the same
gallons gas and loaves of bread.
Are you getting it?
So, go to laserfunds.com I wanna gift you a copy of this book, and here's to your brighter
future.