Your biggest loss will be the day you retire. In this episode, we're going to address the
question "How do I protect my IRAs and 401Ks or my serious money that I'm sucking away
from retirement from loss?" So, I'm Doug Andrew and I'm a financial strategist and a retirement
planning specialist. I've been doing this for 45 years. And I'm passionate about empowering
people like you to understand how to protect yourself from dangers. One of the biggest
dangers especially that erodes away retirees nest eggs are the taxes they're going to pay
in retirement. Inflation and also the market volatility because most people have their
money in the market in those IRAs and 401Ks. And I'm thinking "What are you thinking by
having your money in something unpredictable like that?" So, as we proceed in this episode
to the end, you're going to be blown away with some opportunities maybe you didn't know
existed before. A lot of people don't realize that the government has a permanent tax lien
on your yet-to-be-taxed IRAs and 401Ks. Uncle Sam has more or less has been your partner
on that account. So, when people would come in to visit with me because a lot of times
I would teach educational seminars for about tor retire people. And they would come in
and I would say, "No, bring your after-tax statements on your IRAs or 401Ks." They go,
"My after-tax statements?" Now, I knew they didn't have them. But I wanted them to think
about what I was asking. "Oh, you probably don't have the after-tax statements. Then
bring your before-tax statements and I will have to compute that for you." And they're
like, "Wow, I haven't thought about it like this." And then I would promptly say, "Oh,
okay." If they had (let's say) 900,000, I'd say, "Oh, okay. Well, your after-tax statement
looks like is around 600,000." "What? What do you mean?" "Because a third of this belongs
to the government. I mean between federal and state tax where you live, one third of
this belongs to the government. So, you don't really have 900,000. Your silent partner,
Uncle Sam gets a third of this whenever you withdraw it. If you withdrew this 900,000,
you're only going to net 600,000. If the 900,000 is earning 10% and you pull out 90,000 in
a year, you're not netting 90,000 to buy gas, groceries, prescriptions, your golf green
fees. You're only netting 60,000. So, two-thirds of that is only your money. And many people
don't realize that taxes will likely be going up dramatically. Most Americans believe that
taxes are going to be higher. But when I say "Do you think they'll go up to 50, 60 or 70
percent?" "Oh, no." And yet, many of them say, "I think national healthcare is a good
idea. I think free college is a good idea." Well, hello! The congressional budget office
says, "Last last going to cost 90 trillion." This initiative is going to cost another 100
trillion. Where's that money going to come from? The federal government only brings in
4-5 trillion a year in an entire year from people filing their tax returns. Where in
the world are we going to get that money? It's going to come from raising taxes dramatically.
And so, most people don't realize the impact of taxes at retirement. Oft time, I would
get on the radio or in front of an audience. And I would say, "What if I could tell you
the day that you will suffer your greatest permanent economic loss on those IRAs and
401Ks and the market, would you be interested in knowing that date?" Because usually, it
would be after somebody had experience a loss in the market. And I would say, "Man, how
did that feel when you saw those IRAs or 401Ks go down in value?" Like in 2020, from mid-February
to mid-March, they saw 900,000 go down to 600,000. How did that feel? Well, what if
I could tell you the exact day you will suffer your greatest permanent loss? Because hopefully
that comes back. In may take a few years to get back the money you lose in a crash. But
what's the permanent loss? The day you retire. Because now that money, a third of it start
going back to Uncle Sam. And so, how do we solve this? There's no way out of it you're
going to pay the tax. But people think by continuing to put it of, there saving. No.
It's better to get the taxes over and done with and reposition the money so that your
nest egg is tax-free forever after. So, listen how. So, hopefully, you're beginning to realize
that a traditional IRA or 401K or any qualified plan like a 403B, 457. This plans are actually
in partnership with the government. It's the best savings bond the government ever came
up with for themselves. Because they know people are socking away money for their future
and they lure you into putting pre tax money into it. It'll grow tax-deferred but when
you go take it out, now you pay the tax. Most people thought, "Well, I'll have less income
in retirement." And even if they did have less income, they found themselves in as high
or higher tax-bracket as they were ever in during their earning years. And many people
didn't think or see that coming. It's because they were getting rid of they're deductions
paying off their house, losing that interest deduction or their children are now adults.
Or even if they're still home you can't deduct hem anymore. People aren't contributing money
to these IRAs and 401Ks. If you're business owner, you don't have any of those deductions
anymore. But congress keeps raising taxes and eliminating deductions as they have bigger
and bigger appetite for spending and providing benefits for people. Folks, a long time ago
in the internal revenue code, they have given us the opportunity that if we take ownership
for our own retirement just like taking ownership in a home, you'll take better of a home when
you own it than when you rent it. You'll take better care of your retirement... When you
take ownership and take pressure off of the government to provide you your income in retirement.
And when people don't, they try to do it for you. It's called Social Security. And it's
just not enough. it's a pathetic rate of return. That's another topic. But when you take pressure
off of the government to provide for you, you can get tax advantages. And there's good
ways, there's better ways and there's best ways. I've always had a deed --Good, better,
best. Never let it rest. Never let it rest a good get better and better gets best. Now,
in IRA or 401K, may have been a good way to go. But a far cry from the best way. A better
way maybe a Roth IRA or 401K. It is a step at a right direction. But I've never owned
an IRA or 401K or a Roth. I never will because they have too many strings attached. My favorite,
the best vehicle is what I call the Laser Fund. I have averaged 10.07% rates of return
the last 25 years. Over 45 years, I've averaged 8.2%. My money accumulates tax-free. I can
access it tax-free. I don't have to wait until I am 59 ½. I can put in large lump sums.
I can take it back out again. I can put it back as many times as I want. You can't do
that with an IRA or 401K or a Roth. There's too many strings attached. I want flex-ability
with my planning. But the neat thing is is when the market goes down, I don't lose in
Laser Fund. When the market goes up, I benefit. I get the returns. And so, this is why it's
my favorite vehicle. I want you to learn about it. It is what savvy CPAs and tax attorneys
refer to as the Rich man's Roth. And I sneaker because you don't have to be rich to have
a Laser Fund. You can open one up or 500 bucks a month if you want. Or you can throw in 5
million bucks if that's what you set it up to accommodate. But the rich can't own a Roth.
And so, they refer to the Laser Fund as the Rich Man's Roth. I don't want you to left
out. So, watch this episode right here and learn how the Laser Fund works, why it is
a sacred cow and it's protected in the internal revenue code to accumulate your money tax-free.
Allow you to access it tax-free. When you die, it increases in value and blossoms and
transfers tax-free to your heirs. There's not a Roth around that will do that. And so,
that's why I would recommend you get the taxes over and done with. Roll the money out. Get
out of those traditional accounts and protect yourself so that you will not outlive your
money. And you'll learn when you watch this episode and get a copy of the Laser Fund book
for free. I'll pay for the book. You just pay the shipping and handling. How you can
eliminate the dangers of tax, inflation and market volatility because I want you on board
with those who've employed this strategy. And they have piece of mind. They enjoy the
retirement because they're not going to outlive their money.