Welcome back. We're going to talk about how to achieve financial independence. And
now, why is this important? Because unfortunately, a lot of people go through
their entire life and they still have too much month left at the end of their
money, so to speak. And so, I'm going to give you a vision of how you can be
financially independent in as little as 10 years. If you're young, how to have
your money earning more than you do by age 32. To be able to have a
transformation so that you don't have to worry about working for money. Because
money at work is more predictable and safe than you being able to get up every
day. And working I'm going to give you some very specific action steps that you
can take to be able to achieve financial independence and never have to worry
about money again.
So, I'm Doug Andrew. And I've witnessed in 45 years being a financial strategist. A
lot of people struggle with this question "How do I achieve financial
independence?" It's so interesting to me that we send our children to school and
college to help them learn how to go out and make money or make a living. But we
don't invest in the education of what to do with that money.
So, all too often, we end up short handed we're consuming. There's 3 types or
sources of income. Man at work, money at work or charity. Which one would you like?
Well, when you understand how to have your money work for you, it will work
24/7. And if you have a setback, if you get sick or disabled, you can go away on
a vacation. Your money is working 24/7 to help you achieve financial independence.
Now, as an author, I've written 11 books thus far. My goal is to write at least
one book every year the rest of my life. But my first book was titled missed
fortune. Because of the fortunes people miss out on when they simply don't know
what they don't know. In that book, I outlined 23 chapters which I called myth
conceptions. It's all these myths about money. So, I would teach people about the
reality. What's the truth. What's the strategy to overcome that myth. And many
times, people think, "Well, you have to have a lot of money to start out with." No, you
don't. In fact, the fourth book that I co-authored with my two sons Emerton,
Aaron is Millionaire by 30. I'm going to share with you how they didn't start
with anything except wisdom. I didn't give him any money. And they had net
worth of 1.6 million dollars each by ages 26 and 28. And it was not learned in
college. Unfortunately, you don't learn this stuff in school. We learn it by
going out and I mean shoulders with the people who
really understand money. And unfortunately, a lot of people don't
understand how money works. So, let's give you a few tips on how to achieve
financial independence. And then I have a lot of other information I can point you
to so you can take control and have your money earning more than you do maybe by
age 32. So, how did we get here? A lot of times people go through life and they
stay in the same striving zone. Always striving. But they seem to always have
too much month left at the end of their money. And they wonder, "Well, I don't have
any extra money to set aside." We seem to always be able to spend whatever we earn.
If we get a raise or whatever. Have you ever noticed that you'll always find a
place for that extra amount of money that you're earning? So, one of the
secrets is to learn to live on less than what you earn. And setting aside 2 or
3 percent of your income isn't going to cut it. I taught my family, my clients,
you need to set aside more like 10 to 20 percent of your income if you want to be
financially independent. By the end of 10 years let's say. But the key is to
understand what I call the 3 marvels or miracles (really) of wealth
accumulation. And before I give you those 3, I want you to understand that
unfortunately, a lot of people if they're trying to go around let's say a
racetrack. And let's say the finish line is a million bucks, okay? This is called
the million dollar dash. A lot of people go through life crawling around there
because they're putting their money in tax as earned investments. It's the worst
way to save it but the most common way. People save in banks and credit unions.
Paying you one percent. It's going to take 72 years for you to double your money. At
1% interest. That's the rule of 72 which I talked about in another video. Some
people walk around the racetrack. They take after tax money and put it into a
tax deferred vehicle and annuity or something. That's okay.
But you're just walking. It'll take you a long time to get around there. Some
people jog. They put money and attacked deferred IRA or 401k.
But when they hit retirement, they're shocked. Because of the amount of taxes
they have to pay that gobbles up about 25%. Maybe a third or even 40% of what
they sucked away. Because the government's there with their hand out.
They want their share. But I would rather sprint. So, I want you to be able to
sprint around this million dollar dash and arrive at financial independence in
short order so that your money is earning more than you do. You can sit
back and relax and anything else is gravy and you can sleep at night. So, I'm
going to share with you the 3 marvels of wealth accumulation. Give you
an outline and that other videos can help you dive deeper into how to harness
those 3 marvels or miracles. So, here we go. I hope you're writing these down.
Marvel number 1 is the power of compound interest. Now, sometimes I say
that and CPAs and tax attorneys go, "Oh, I understand compound interest." I go, "Oh,
really?" And I actually test him on it and most
of them fail. I'll have you watch another video to see the riddle and the question
that I give them. But see compounding interest instead of simple interest.
That's the first Marvel. This helps you sort financially. $1.00 doubling. Every
period for 20 periods will be worth 1 million 48 thousand dollars. But see a
lot of people are crawling or walking around because they are trying to earn
compound interest but it's not very high. Or they're going to have to pay tax and so
the impact of taxes will take you way longer that's why you're walking instead
of jogging or sprinting. And so you have to take into consideration the negative
impact that I talked about in other videos of inflation and taxes and so
forth. So, you have to harness the second marvel. That is to be able to accumulate
that money tax-free. Now, some people say, "Well, you mean in an IRA or 401K?" No.
That's not tax-free. That's just tax deferred. You're just
putting it off. You're sort of deferring or procrastinating paying the tax and
people think that's smart. Because you're going to be in a lower bracket. Well,
that is not true. So, you want to have money be compounding in a tax-free
environment. And I can prove to you that if it's tax-free, $1 doubling every
period for 20 periods is a million dollars that's your money. If that's in a
tax-deferred IRA or 401K. No. about 350,000 of that belongs to the
government. Federal government and 41 out of 50 states in the United States has a
state income tax. So, if you want all of it to be your money, you want to sprint
so that the million bucks at the finish line is yours. All yours. Not one third,
Uncle Sam's. Now the third Marvel a lot of people don't understand. It's the
secret of positive leverage. Now, sometimes people who hear leverage they
go, "Oh, no. It can get you into trouble." No. Leverage is what makes the world go
around. Now, leverage without liquidity is stupidity. And so, in other videos, I'll
explain why. But basically leverage is the ability to own and control assets
with very little or none of your money tied up or at risk in that asset. Ooh,
that's a lot to swallow, right? So, in order to achieve financial independence,
one must harness the value of these 3 marvels or miracles of wealth
accumulation. 1, compound interest. 2 would be tax favourite accumulation of
that compound interest. And 3 would be safe positive leverage. Again, the
ability to own and control those assets with very little or none of your money
tied up or at risk in that asset. Now, this is a lot to swallow. Let me just
share with you. This is the secret behind how my 2 sons Ameren and Aaron from
age 21 until ages 26 and 28 accumulated net worths each of 1.6 million dollars
by using those three marvels. So, because this
is a lot to digest, many people find it valuable to be able to dive deep into
these concepts. In all of my books, I talk about these three marvels or miracles of
wealth accumulation. My most recent book The Laser Fund, a best-seller now is
actually 2 books in one. This is comprised of 200 pages, 14 chapters with
all kinds of charts and graphs that will help you understand how to harness these
3 marvels or miracles. If you learn more by stories, you flip the book over
this direction and you read here about a hundred pages. 12 chapters with
62 actual clients stories of people who have implemented these
various strategies to become financially independent and you can too. You can click
here at the bottom. I'll give you a copy of this book absolutely free. Just cover
nominal shipping and handling charge. And I want to empower you with further
information on how you can achieve the financial independence that you desire.