Welcome back.
In this episode, we're going to answer "What is the best lifetime investment?"
Now, we may talk about your health, your relationships.
But most people are asking about money.
So, in this episode, I'm going to give you a vision of the 3 key elements of a prudent
investment.
Hope you overcome the obstacles that most people have where they don't understand money
and the impact of things that can negatively impact the accumulation of that money in their
investments.
And how they get duped in my opinion.
I want to transform your future to be able to harness the best investments (in my opinion)
that will allow you to accumulate taxes and transfer your money on a tax-favored basis.
So, I'm Doug Andrew.
And as a financial strategist for 45 years, the most important point I want you to remember
from this episode is that any prudent investment must pass at least 4 test --Liquidity, Safety,
Rate of return and Tax benefits.
These are the key elements of a prudent investment.
Now, I put them in that order for specific purpose.
I feel the number 1 key element of any prudent investment is Liquidity.
The ability to access your money when you need it with an electronic funds transfer
or maybe a phone call.
Number 2 would be Safety.
Safety of principal.
Not just safety of the institution where your money is.
But you want to protect the principal that you set aside and not lose.
And be able to take advantage of upturns in the market.
You want to have safety of your money.
Number 3 would be able to earn predictable rates of return.
Not pie in the sky, get-rich-quick rates of return.
But tax-free returns of 7, 8, 9 or 10 percent, that's incredible.
Because if you understand the negative impact of taxes which we talked about in other episodes,
you would have to earn 15% in a tax deferred IRA or 401K to net you 10% after paying you
the third back in tax at the end of the day when you retire.
I would just as soon earn a 10% rate of return tax-free than have to earn 15% to net 10%.
Does that make sense?
And so, the key elements of a prudent investment are Liquidity, Safety, Predictable rates of
return and I prefer tax-free more than just tax-deferred.
So, I'm going to disclose (in my opinion) the best investment choices to be able to
pass that test with flying colors.
In fact, I've actually have a rating system in my books that we rank any investment places
where you put your money based upon liquidity on a scale of 1 to 10.
Safety, rate of return and tax benefits.
Unfortunately, there are a lot of ivestments that people put money into America in mutual
funds.
in the market.
in IRAs or 401Ks.
Or in the bank or in annuities where the score of those 4, a perfect score would be 40.
I don't know of any investment.
The ranks of perfect score of 40.
But most people have their money in places that only score 18, 19, 20, 21, 22.
My favorite vehicle scores between 33 to 35.
I know of no other investment vehicle that allows you to pass liquidity, safety, rate
of returns and tax benefit test with flying colors.
Like what I have affectionately call the laser fund.
So, let me explain that to you here.
So, in my opinion, the best lifetime investment should pass the liquidity, safety, rate of
return and tax benefit test with flying colors.
How do you do that?
Well, let me use a metaphor.
Unfortunately, I think a lot of financial advisors well intending try to charge up a
battery, so to speak.
So that when you retire, that battery wont go dead before you do.
Okay?
I would rather have a generator than a battery.
What's the difference?
See, a generator generates power hopefully in the perpetuity.
It doesn't get shortened out.
What is shorting out or causing most people's retirement batteries to go dead?
3 big dangerous --Taxes, inflation and market volatility.
So, I think the best lifetime investment is (1) that passed as liquidity, safety, rate
of return test.
But also, you don't have to worry about taxes because it's tax-free.
You don't have to worry about the danger of inflation because this vehicle allows you
to link your returns to the things that inflate which I teach about in other episodes.
But also, I'm immune for market volatility.
When the market goes down, I don't lose.
I can sleep at night when the wind blows, so to speak.
Because I'm not losing.
And when the markets are up, I get to take advantage of that.
And so, my favorite vehicle, the best life investment that I have found is to be able
to put my money into what I call the laser fund.
The lae fund actually is an acronym that stands for liquidity, safety, rate of returns spells
LASER.
L-A-S-E-R is actually liquid assets safely earning returns.
So, I'm going to show you can learn more about how to harness those advantages and be able
to take advantage of the best lifetime investment that I've ever seen that has empowered people
to be able to not outlive their money.
They look back and say, "Oh, my heavens.
That is the best decision we ever made."
And this is what gave us dignity to not outlive our money.
So, through out my career, I've seen countless people who have converted to the best strategy
to be able to accumulate access and transfer their money tax-free.
Let me share one story with you.
There was this awesome couple.
They're very successful.
And they had accumulated as sizable amount of money in tax-deferred IRAs or 401Ks.
They we're sort of this tax-trapped.
It took 5 years.
You can't do this overnight.
But we established the favorite vehicle for them what I call the laser fund and we actually
set up 4 accounts for them.
Now, it took 5 years to strategically get their money out of inferior places in tax-deferred
IRAs and 401Ks in the market because they want to eliminate those dangers of taxes,
inflation and market volatility.
But they wanted to maintain liquidity, safety, earn predictable rates or return and they
wanted to convert at least 60% of their income during retirement to tax-free income that
wouldn't show up in their tax return.
I love this story because even though in 5 years, they were in the highest bracket which
they were going to be in the rest of their life if they didn't do something.
We move them in 5 short years from the highest tax bracket to a zero percent tax bracket.
Now, they enjoy about 800,000 a year if tax-free income.
And they say, "Wow!
This is awesome."
That was worth the pain of going through the conversion process.
So, the key take away is here are to be able to choose investment vehicles, the past liquidity,
safety, rate of return and tax benefit test.
Those are the key elements of prudent investment.
You also want to eliminate the dangers of taxes, inflation and market volatility.
And be able to rest assure that you can go to the things that you want and love doing
in retirement.
Instead of bringing about money.
And lastly choose a strategy that will generate the most net spendable income at the time
in life you're going to need the money the most instead of battery approach to retirement.
And so, if you would like to be empowered on how to convert to tax-free investment options,
please watch the episode here so that you can gain further insights into how to convert
to tax-free income during those golden years for you.