This savings alternative is far better than a Roth 401(k). In this episode, I'm going to address the
question, how to save for retirement without a 401(k)? Maybe you feel left out? Deem yourself
lucky. So, my name is Doug Andrew and I've been a retirement planning specialist for more than
4 and a half decades. And I've never owned an IRA or 401(k). I never will. I've never owned a Roth
IRA, 401(k) okay? And I never will. You're going to understand why as you stay with me to the end
of this educational video. But consider yourself fortunate. A lot of times, I've heard people say,
"Golly, my employer doesn't offer a 401(k)." I'm like, "Uh, you're fortunate. Deem yourself lucky."
Because too many people in America I think are duped into putting money into the company 401(k)
and deferring tax until retirement and then they have this huge
shock when they hit retirement. And they're in as high or higher tax bracket as they were ever
in during their earning years. But that's not what they were told. Do you know that 91 of Americans
put money into traditional IRAs and 401(k)s? And yet, I can prove to you that a Roth IRA 401(k)
will probably provide 33% or more in net spendable retirement income than a traditional IRA, 401(k)?
If you believe taxes in the future will likely be higher, which most Americans believe.
And so, you know, it would be far better to not own a 401(k) in the first place and have to undo
mistakes. So, consider yourself fortunate. And I'm going to share with you a strategy
so that you can do far better than the people who follow the herd and put their money in traditional
IRAs and 401(k)s. When we talk about a strategy for saving for retirement without a 401(k),
let's make sure we understand what a 401k or an ira 457 pension profit sharing plan. These are all
qualified plans. Qualified with who? Well, with the government, with uncle sam.
Being your partner. Now, I don't think that's the smartest way to go as you're going to learn here.
But when we talk about a strategy to accumulate access and transfer your money totally tax-free,
I choose to not use a qualified plan. No. I don't want uncle sam as my partner. I want
a non-qualified retirement planning alternative to iIRAs and 401(k)s. So, oftentimes people get
confused when they hear qualified. "Well, I want to be qualified to be tax-free." No. You can use
vehicles that qualify for tax-free accumulation and access without being what the IRS calls a
qualified plan. So, my favorite alternative allows you to be able to enjoy the benefits of tax-free
growth, tax-free income or access to your money anytime even before retirement. And when you pass
away, it blossoms in value and transfers totally income tax-free. And yet, the IRS says that's
a non-qualified plan. You're not trying to get a tax deduction for what you contribute necessarily.
You want to contribute money as much as you want some years. And maybe nothing in other years. See,
a lot of qualified plans have strings attached. Before I share with you a savings alternative that
I feel is far better than a Roth, let me explain that a Roth is a step in the right direction.
But I want to make sure that you stay with me to the end of this episode. I have a free gift that
I would like to give you. And you're going to be empowered with all kinds of epiphanies and
aha moments as you read my 300-page book I would love to gift you. Also, feel free to subscribe to
this three-dimensional wealth channel. Hit the notification bell because I post new
educational YouTube video almost on a daily basis and I don't want you to miss out.
Thank you for viewing this. Now, at the beginning, I said this savings alternative is not only better
than a 401(k). It's better than a Roth. Now, a Roth is a step in the right direction. See, a lot
of times people were socking away money for their future retirement in traditional IRAs and 401(k)s.
And they thought that was the smartest thing to do because they would be in a lower bracket.
But people began to get smarter and smarter and realized, "No. If you save much of a
respectable retirement nest egg, you're likely not going to be in a lower bracket." And so,
people would think, "Golly, it would be far better for me to just pay the tax on the contributions,
on the seed money I'm putting into these accounts and let it grow tax-free. And then when I retire
to be able to access the income without having to put it on my 1040 tax return."
I've been telling people that for years. That is why I wrote an article called How Congress is
Peddling IRA and 401(k) Snake Oil? Well, in 1997, a lot of people were beginning to get smart about
this. And congress was hard up for tax revenue. And so, senator Roth says, "I have an idea."
Because of these smarter people... And by the way, only 9% of Americans are putting money into Roths.
Still, 91% are duped into putting money into traditional IRAs and 401(k)s. But if you take
9% of American savings and you roll it out, you get it rolled out or really rolled over to a Roth,
it's going to trigger tax. And that's what the government wanted. They wanted the tax revenue
sooner than later. And so, they did it primarily for them. Now, Roths have 2 benefits. You fund a
Roth IRA, 401(k) with after-tax dollars. The first benefit is it accumulates tax-free.
And then when you go to access income, it gives you tax-free access or income.
Those are the 2 benefits of a Roth. Now, I've never owned a Roth. Why?
Because my favorite vehicle that I will share next has those 2 benefits, always has
for over 100 years. It's like a sacred tax-free cash cow in the internal revenue code. But it
has four additional benefits that Roths will never have. And I'm going to share them with you
and why I will never own a Roth. Why would I when it's inferior to the best savings vehicle?
So, my favorite vehicle, a max-funded, tax-advantaged insurance contract what
I call the Laser Fund has those 2 benefits of a Roth but four additional benefits. What are they?
Well, when I set up a laser fund, I want to be able to deposit a big lump sums in a banner year
because I'm a business owner, i'm an entrepreneur. So, I could structure my laser fund to accommodate
$300,000 in a deposit in a single year. You can't do that with a Roth. You're limited based upon
a certain percent of your income or a certain dollar amount, okay? Those are
the strings attached. Now, I don't have to put in 300,000. I could put in 30,000 or nothing. Now,
let's say I put in 30,000 instead of 300,000. That means I could have put in another 270,000.
Well, in a Roth, if you don't use the room in a given tax year, you lose it. With a Laser Fund,
I could put in that other $270,000 anytime. In the second, third, fourth, fifth, sixth year,
anytime in the future, I can make up for the deposits I could have made that I didn't, okay?
You can't do that with a Roth. In fact, my favorite vehicle the laser fund is often
called the Rich Man's Roth because if you make too much money, you can't even own a Roth.
Now, the next big benefit is I can access money out of a Laser Fund for any reason. There's no
IRS penalty, okay? If I put in 300,000 let's say and I needed to 30 days later access 250,000,
I can do that. There's no penalty by uncle sam, by the IRS for doing that. You cannot access money
out of a Roth usually for 5 years until you're 59 and a half. You don't have that flexibility.
Now, with the laser fund, I can use indexing. This is the fifth big benefit because with indexing,
I can benefit when the economy, when the markets are up but not lose when the market
crashes or goes down because my money is not invested in the market in a Laser Fund.
It is safely tucked in the insurance company and they pay me a rate of return linked to what the
market is doing to an index. But my money is not in the market. So, when the market loses, I don't
lose a dime. And if you go, "Hmm, how can they afford to do that?" They're big boys and girls.
They know exactly what they're doing. They're not risking anything. They're simply purchasing
options (upside options) and those will expire worthless but you don't lose a dime if the
market crashes because your money's not in the market. But if the market goes up, they have
their wherewithal to pay you whatever the S&P 500 or the Dow Jones grew by usually up to a cap. So,
be sure and watch episodes on how indexing works. The last big benefit of a Laser Fund
is that when I ultimately pass away, it blossoms. It increases in value and transfers tax-free.
On this last point, I'm 68. If I happen to die in an accident tomorrow,
every million that I might have in a portfolio of laser funds would right now blossom to about
2 and a half million and transfer totally tax-free to my wife or my children, a church, a charity.
Whoever I name as the beneficiary. There's not a Roth around that'll do that. People say, "Well,
how much does that cost?" Well nothing's free. But it doesn't cost me anything. It's being paid for
with a minuscule portion of interest that would otherwise go out the window in unnecessary tax
if I had my money in traditional IRAs and 401(k)s. So, when I say a rich man's Roth,
a lot of people say, "Well, I've never heard of that." Well, savvy CPAs and tax attorneys refer
to a max-funded index universal life insurance contract, what I call the laser fund because
it passes the liquidity safety and rate of return tests with flying colors and it's tax-free. I call
it the rich man's Roth. Or many CPAs will do that. Now, I snicker because you don't have to be rich
to own a laser fund. You could sock away 500 bucks a month into a laser fund if you're 30 years old.
If you're 50 years old, I'd recommend maybe at least $1,000 a month. You don't have to put in
big lump sums. But this is where wealthy people put their money because they don't qualify for
a Roth. They make too much money. So, they put it into a laser fund. And like I've said,
I like the laser fund because it has the 2 benefits of a Roth and four additional
benefits that Roths will never have. So, watch other episodes on this channel.
Learn this. But I want you to claim your free copy of my most recent bestselling book, The Laser Fund
because you're going to see that too many times, people who get lured into a Roth
versus a traditional IRA, 401(k), they don't realize there's still all these strings attached.
And I don't like all of those. I want to have my own freedom and choice and flexibility to put in
as much as I want, withdraw money, have it blossom when I die, use indexing and not lose when the
market goes down. So, read, study about this. Here's how you can claim your free copy of my
most recent 300-page book The Laser Fund. So, how can you learn more? If this has piqued interest,
I would love to gift you a free copy of my most recent best-selling 300-page book The Laser Fund
which is actually 2 books in 1. This book here is about 200 pages comprised of 14 chapters with all
kinds of charts and graphs and explanations of how to diversify and create the foundation for a
tax-free retirement. Now, if you learn more right brain with stories and examples, you flip the book
over and read this one. This is about 100 pages, 12 chapters with 62 chicken soup for the financial
soul stories like the one I just told you. If you like to use your whole brain, I would recommend
you read both books. But it's 300 pages. This has been flying off of our warehouse shelves. I'll
tell you what. I will pay for the book. You go to laserfund, LASERfund.com. It's on the screen here
and claim your free copy. You contribute a nominal amount towards the shipping and handling.
I'll cover the rest of that cost and I will send out a book to you. There's also options
there for you to listen and learn and watch and learn. But here's to your brighter future.