Out phase inflation with your money. In this episode, I'm going to address the question
"How to profit during the coming recession and market crash?" Is there a crash coming?
I think so. Get ready. I think we're headed for a big recession. I want you to be prepared.
So, my name is Doug Andrew and I've helped people optimize their financial assets and
minimize taxes for now more than 47 and a half years. And this is one of my favorite
topic because we always experience downturns in the market. I've lived through several
recessions. Some major recessions. I'll never forget the one in 1980, yeah. I've been in
the financial services industry since 1974. And I've learned some things, especially after
the first recession, 1980 to 1982, to where every recession since I have been able to
profit from the market downturns and not lose money. And so, I don't want you to go through
the long learning curve it took me. I want you to get this with fast power curve. So,
I want you to understand from the outset. I'm actually a natural optimist. I'm not a
doomsdayer. But I am a realist. And I'm here to tell you for real at the time that I am
recording this episode, I predict we will have a recession probably within 1 to 2 years.
I think it's going to be a serious one. And I think we are going to have some market volatility
and unemployment is going to go up and it really sad that it has to happen. But I am
going to explain why it happens and what you can do to not only prevent losing money but
actually profit when the markets take a nosedive. So, why do we have recessions and market crashes?
Well, everything is setting itself up for the perfect storm so to speak. See, the reason
why we have a recession is when companies, for example, they lay off people, they raise
the price of goods and services. Why do they do that? It's because generally, it happens
from politicians mostly who do not understand economics that just turn around and immediately
raise taxes. So, we're seeing that right now as the recording of this video.. President
Joe Biden has made it very clear. He wants to raise taxes, the capital gain tax, he wants
to double from 20% up to nearly 40%. He wants to do away with the step-up and basis on long-term
capital gains. He wants to charge a capital gain's tax every time you sell real estate.
Basically, maybe doing away with 1031 exchanges. He does not want children to inherit money
without paying the full capital gain tax. In other words, do away with the step-up and
basis on long-term capital gains. And he wants to raise the inheritance tax from about 40%
up to 67% and maybe lower the threshold where you start paying an inheritance tax down to
maybe a million bucks. See, tax-revenuers who are hard-up for tax revenue because his
proposals are going to cost 4 times what the IRS brings in in revenue. Oh, my heavens.
They only bring in maybe 4 or 5 trillion a year. And his proposals are going to cost
triple to quadruple that. When we talk about health care for all or college funding and
so forth, it's estimated that will cost 100 trillion over the next 10 years. If you divide
that by 10, that's 10 trillion a year which is twice as much as the government even collects
in taxes. And they still have to run the government which already spends 5 trillion. Folks, we're
out of control with spending. So, they usually have to print money which causes inflation
which is sort of like a hidden tax. Because people have to pay how much? Already 50% increase
in gasoline from a year ago from the recording of this video. And I think it's going to go
up to double. We have real estate in some areas that has increased by 20%. We have food,
we have healthcare, we have prescriptions. Folks! Companies, he wants to raise the corporate
tax rate from 21% up to 28%. Now, people said, "That's only 7% more. They can afford that."
No, they can't. It's 33% more. Instead of on a million dollars of corporate profit paying
210,000, now corporations are going to pay 280,000. That's 70,000 more which is 33% more
than they've been paying. So, corporations are already gearing up. They're preparing
to lay off people. they're going to change to automation. They're going to increase the
price of their goods and services and pass it on to the consumers. So, who's that going
to really hurt? The people who maybe got a little bit of raise in a wage. Maybe they
lost their job. But now the cost of living is gone up more than their wage went up. So,
what good did it do to raise the minimum wage to $15 an hour when now it cost more than
that just to fill up their car at the gas station. Is this making sense? So, this causes
companies to not expand. It causes them to implode to tighten their belts. This causes
a recession. It's coming. And unfortunately, I hate to see it but a lot of times, they
don't understand why recessions happen. Oh, my heavens. I can see it coming clear as day.
And of course, the market then reacts because when corporations and businesses are out flourishing,
then their stocks, the value, and so forth begin to plummet. People panic. Real estate
begins to go topsy-turvy. And this is what causes not only market volatility. But people
lose 30 or 40 percent. It causes sometimes horrible crashes and recessions. Mark my word,
it's going to happen. It seems to happen every 7, 8, 9 years on the average. So, if it's
not a matter of if but simply when, you need to be prepared to profit when the market crashes.
How do you do that? Now, before I share with you how to profit from a downturn in the market,
if this is resonating with you, click like. Share, post a comment. But subscribe to this
channel, 3-Dimensional Wealth because I post an in-depth answer to a financial question
almost on a daily basis. It's free. Click the little bell so you'll be notified when
I do. And stay with me to the end of this episode because I want to give you a special
gift to educate you on how you can profit during any downturn in the market, okay? Let's
go back to 2001 to 2003. The market dropped 40%. And also real estate was affected. Now,
during that 2001 to 2003, many Americans lost 40% in the value of their IRAs and 401ks invested
in the market. A lot of people owning real estate, they saw the value of real estate
dropped sometimes 10, 20, 30 percent. I didn't lose a dime of my real estate equity when
homes went down in value. And I did not lose one penny due to that market downturn. Because
my money is not invested in the market, I get to benefit when the market goes up. But
I don't lose when the market goes down because my money is not actually invested or at risk
in the market. This is a strategy called indexing. Same thing happened in 2008. Most Americans
lost 40% again for the second time in that decade. A million-dollar nest egg went down
to 600,000 for the second time in a decade. It took 4 more years until 2012 just to get
back what they lost. Do you know during 2001 to 2012, people using my favorite vehicle
called the Laser Fund double to triple their money? A million doubled to 2 million, tripled
to 3 million tax-free. When so many Americans were barely back to breakeven because they
didn't lose when the market went down and the second the market turn around. For example,
the first 90 days of 2009, most people following my strategies with a Laser Fund locked in
gains of 16% tax-free after not losing a dime the previous year. So, what's the most recent
example? Let's take the covid-19 pandemic. Do you know that in March of the year 2020,
the market dropped about 30-33 percent? We had hundreds of clients. My sons told their
clients, "Link to the one-year point to point with the indexing strategy with no cap." We
had a client that had 850 somewhat thousand dollars in cash value in their indexed universal
life policy. One year later, because he bought low when the market went down. What the most
people doing? Selling. He goes, "No, no, no! You buy low, you sell high." Most people panic
and they sell low. Guess what? One year later, March of the year 2021, their account had
grown to $1,350,000. They had a 61.33% gain in one year, tax-free. They profited big time
from the market downturn. So, if you want to profit from the upcoming recession, you
need to learn when to link. And if you don't know what I am talking about, you're linking
to an index or indices by using max-funded indexed universal life insurance. So when
the market goes down like in 2008, you'll be cheering, "Go! Go!" Because you're not
losing. And then you go link. And all of a sudden, you might lock in a gain of 61% like
people did in 2021. This isn't just a one-time. There were many people that experience that
gain no matter how much money they had. You don't have to have a ton of money. But do
you know that those who use multipliers ended up with sometimes 2, 2 ½ times that much?
This is incredible. So, how can you learn how to profit from market downturns and protect
yourself so you don't lose? Folks, if in that worst decade --2000 to 2010 and '12; if you
were Rip Van Winkle and fell asleep and you simply used an indexed portfolio of what I
call Laser Funds, you would have averaged 7.23%. A million would have doubled to 2 million
in 10 years when most people were barely getting back to break even. But by using indexing
and rebalancing, many people 2 and a half or 3 times their money during that time period.
If you want to see examples of how and why, read this book and study it. I'm going to
gift you a copy. it's called the Laser Fund. It's actually 2 books in 1. This side has
200 pages with all the charts and graphs and explanations. If you learn more by stories,
you flip it over and read this side. It has 12 chapters with 62 actual client stoties.
If you want to use both the right brain and left brain, read both books. Okay? Don't pay
20 bucks. I want to gift you a copy. Here's how you can claim your free copy. You go to
laserfund.com (LASERFund.com) or click on the link below. You contribute just a nominal
amount towards the shipping and handling. I'll cover the rest of that. And I'll send
out a hard copy to you and I'll pay for the book. There's also options there if you want
to listen and learn, watch and learn. And then if you want to have assistance setting
up your own Laser Fund, there's ways that you can connect with professionals. Some of
my students that I point to professionals who will help you do this correctly. And it
will help you diversify and help you create the foundation for a tax-free retirement and
be able to profit when the market crashes. Because again, it's not a matter of if, but
when.