The whole 401k premise is wrong.
In this episode, I'm going to address the biggest mistake people make when saving for
retirement.
Folks, don't make this mistake.
Or if you have, don't keep making the mistake.
Do something better.
Get ready.
So, I am Doug Andrew and I've been helping people optimize their financial assets, minimize
taxes and prepare for a comfortable retirement or achieve other financial goals now for 47
and a half years.
And so, it always disturbs me when I have people come to me with the bulk of their money
being accumulated in yet-to-be-taxed IRAs and 401ks invested in the market.
And I go, "Oh, dear.
What are you thinking?"
And they have to do a double-take and they go, "I thought we've done pretty good.
We've really saved a lot."
And I can tell they have.
Maybe they've been disciplined and socked away 15-20 percent of their income or more.
There's a lot of Americans that will not save that much.
In fact, the only people that I have noticed that are in lower tax brackets when they retire
are those that didn't save very much.
Here a little while ago, I had a critique and he said, "Oh, I am going to be in a lower
tax bracket when I retire.
So, I don't believe it when you say most people are not in lower tax brackets when they retire."
And I ask2 questions: "So, how much have you been earning on average a year for the last
several years?"
And he said, "Oh, between 300 to 350 thousand".
I said, "How much have you been saving?"
And he goes, "Seventy-five hundred".
Hello?
If you want to maintain the same lifestyle or a better lifestyle, you better be socking
away more like 10-15 or 20 percent.
That was pretty pathetic.
No wonder he's going to be in a lower tax bracket because he will not have save very
much money.
So, if that's the reason why you are in a lower tax bracket, I feel very sorry for you.
But most people who are savers find themselves as high or higher tax brackets as they were
ever in during their earning years.
But see the whole premise when they were told to set up an IRA or 401k and unfortunately,
91% of American's I think are still duped into putting money into traditional IRAs and
401ks.
Folks, only 9% of Americans put money into Roth IRAs and 401ks which are step in the
right direction if you believe taxes in the future will be higher.
And most Americans think they will be.
Whenever I ask people, "Do you think taxes in the future will be lower?"
I get nothing but crickets.
"How many think they'll be the same?"
One or two.
But when I say, "How many think they're going to be higher?"
A sea of hands goes up.
And I go, "Well, then, why are you continuing to postpone, deferred, delay the inevitable
and accumulate this big nest egg.
And to pull out your money down the road when you're convinced taxes will be higher?"
And they think, "Wow.
I guess I just had my head in the sand.
I'm just following the herd putting money into those traditional accounts."
"So, Mr. Andrew, are you saying that a Roth is better?"
Yeah.
But I have a little ditty that goes, good, better, best.
Never let it rest.
Never let it rest until good gets better and better gets best.
I have never owned an IRA or 401k, never will.
But I've never owned a Roth IRA or 401k and I never will.
Why would I when I can have something that is far better.
In fact, it's the best financial instrument that has the 2 benefits of a Roth and 4 additional
benefits that Roths will never have.
Are you ready to understand what it is?
So, you need to protect yourself from the negative impact of time (T-I-M-E).
Before I tell you what that means, if this is resonating with you, and you can think
of somebody who ought to be watching this video, be sure and share.
Click like, post a comment.
Subscribe.
It's free.
And click the little bell so you'll be notified every time I post a new educational video.
This is not about me on this channel.
This is about you.
And I want to empower you with education and insights and opportunities that maybe you
didn't know existed before.
Stay with me to the end of this episode.
I want to gift you a copy of my most recent bestselling book to empower you.
So, time (T-I-M-E) stands for taxes, inflation, market volatility, and economic uncertainty.
Those are the killers on people's hard-earned money when they go to retire.
They don't take into consideration the negative impact of taxes to where they pull out $100,000
to live on.
And they have to pay tax.
And they're only netting 75,000 or 60,000 after paying federal and state tax.
And so, they have to tighten their belt because they really have 60,000 after tax.
Well, pretty soon, because of the I in the word TIME, Inflation, 60,000 is not cutting
it anymore.
And inflation is about to go through the roof because of the irresponsible government spending
and the printing of money.
It's what I call the hidden tax.
And so, in 7 to 10 years, people find that they will have to have double that amount
to buy the same gallons of gas, loaves of breads, prescriptions, golf green fees, whatever
that they used to buy for 60,000, they're going to need to net 120,000.
That means they have to pull out 180,000 or 200,000 a year out of an IRA or 401k because
they have to pay the tax.
And then the net after-tax has to be double what it was 7 to 10 years ago to maintain
the same lifestyle.
Well, if your nest egg is not staying in phase with inflation, you will outlive your money.
So, for example, if you have a million-dollar nest egg and if it was earning 10%, you theoretically
ought to be able to pull out 100 grand a year for the rest of your life.
But if you have to pay tax on that but you realize because of inflation, you need a net
of 100,000 to buy gas and groceries, prescriptions and so forth, you have to pull out more to
net.
But wait a minute, you have to pay tax.
In a 33% bracket because Biden is going to be raising taxes directly or indirectly.
Especially on people who have the money.
Who has the money in the country?
Retirees, okay?
Have you ever realized the story of Mount Everest?
There have been about 5,000 people scale Mount Everest.
And there's been 2 to 3 hundred who have died.
When do you think they died?
Going up the mountain or down the mountain?
Going down the mountain.
People don't think about the descent.
Sometimes people don't think about going down the mountain of retirement.
They are only focused on socking away the money into the IRAs or 401ks.
And I'll deal with going down the mountain of retirement later.
And that's where they get hurt.
That's where they die.
They ran out of money.
I don't want that to happen to you.
Because when the government is hard up for tax revenue, where do they go?
To the people who have the money.
Those who saved.
Isn't sad?
They penalize the savers.
That's why I like to put my money into a vehicle that is tax-free.
To take ownership.
To be able to not make the mistake of thinking that I will deal with my taxes down the road.
No.
You want to get the taxes over and done with sooner than later and make sure at retirement
is something totally different than what you did for retirement.
I would recommend most people 5 years before retirement start a strategic rollout.
This is not a rollover.
This is a rollout.
This is where you get money out of those yet-to-be-taxed IRAs or 401ks and you get the taxes over and
done with.
Whether you need the money to live on or not, pay the tax, reposition the net after-tax
into vehicles that will be tax-free from now on.
My favorite is the Laser Fund because at the end of the day when I die, it replenishes.
It reimburses (my spouses, my kids, my grandkids) many fold what I paid in tax.
So, I am not out in anything by just getting the tax over and done with sooner than later
rather than stringing it out.
RMDs --required minimum distributions is the most common advice I hear people who really
don't need the money but they have to start pulling it out of their IRAs and 401ks starting
at age 72.
Rost advise I've ever heard.
You want to know more this?
I want to empower you with education.
So, the biggest mistake made by retirees is thinking they're going to be in a lower tax
bracket and continuing to follow the herd by deferring, deferring.
Don't make that mistake.
Change sooner than later.
Begin to reposition your retirement nest egg into a portfolio that's going o be tax-free
from now on.
I'm not talking about a Roth.
Roths only accumulate your money tax-free and allow you to access it.
The Laser Fund has to befits but there's no strings attached.
You can put in way more money into a Laser Fund that you can a Roth.
Rich people can't even own a Roth.
Did you know that?
So, many savvy CPAs and tax attorneys called The Laser Fund the Rich Man's Roth.
But I can use indexing to make money when the market goes up and not lose when the market
goes down.
At the end of the day when I die, it blossoms and transfers tax-free.
Thre's not a Roth around that will do that.
So, if this is intriguing you, let me show you how you can learn more about this Laser
Fund that I am talking about.
So the best way to protect yourself from the negative impact of T-I-M-E, time; --Taxes,
inflation, market volatility.
And to be able to have tax-free income so that ever million dollars you save will generate
80 to 100 thousand dollars a year of tax-free income for as long as you live.
And if inflation goes to 5, you'll earn 10 or more.
If it goes to 10...
I've always earned 5.5 greater than the inflation rate at the time.
That's by using a strategy called indexing.
Folks, you can have inflation work for you instead of against you.
You can make yourself immune from makret volatility where you don't lose when the market goes
down.
But you make money when the market goes up.
The economic uncertainty that E of the word TIME, you eliminate that danger because your
money is not at risk in the market.
It is safely tucked into an insurance company that is rated at the highest safety ratings
far greater than banks and credit unions.
Your money is accumulating safely tax-free to be able to generate that type of predictable
income at the time in life you're going to need the money the most.
So, if you want to learn more about how this does that, please go to LaserFund.com.
Click below.
LASERFund.com.
And I want to gift you a copy of this book.
It's 300 pages.
Two-thirds of the book, 200 hundred pages is full of charts, graphs, and explanations.
That's for the left-brain reader.
If you're a right-brain reader or learner, you flip it over.
And this is100 pages, 12 chapters, with 62 actual stories of how people use the Laser
Fund for retirement, college funding, real estate management, business working capital,
emergency funds, on and on and on.
It's what i call the financial swiss army knife.
It is the dream solution and you'll see why.
If you contribute a nominal amount towards the shipping and handling, I'll cover the
rest of that.
And I will pay for the book.
And I'll fire you out a copy.
And there's options there to get the audio version.
And additional video training.
But I want to empower you because this is about your brighter future and avoiding the
mistakes that so many Americans make.
I want you to solve it sooner than later.