- $800,000 a year
of tax free income.
In this episode,
I'm going to tell you a story about a couple
that went from the highest tax bracket
to a 0% tax bracket in five years.
Get ready.
This is gonna blow you away.
In fact, I'm gonna tell you two stories,
so put on your seatbelt.
(upbeat music)
So, I'm Doug Andrew.
I've been a financial strategist
and retirement planning specialist now
for nearly five decades.
Helping many, many people save a ton of unnecessary tax.
Or, I've helped many people redirect
otherwise payable tax to causes they support.
And it actually helps out
this great country of America far better,
because they will never be dependent on government.
Whereas, many Americans, following the herd,
putting money into tax deferred IRAs and 401ks,
are going to end up outliving their money,
and they will be sort of a drain
on society and the government.
So, when you understand economics and taxation
and why the government allows certain financial vehicles
to be tax deferred or even tax free,
you'll understand why this is so powerful.
Now, if you've watched very many
of my educational episodes on this channel,
I'm very passionate about helping people
save for long-term goals, such as retirement.
And I want them to do it the best way,
'cause I have a little ditty that goes,
"Good, better, best.
Never let it rest.
Never let it rest how good gets better,
and better gets best."
Okay?
So, IRAs and 401ks may be a good way to go,
but they are a far cry from the best way to go.
A Roth IRA or 401k is a better way to go.
But I've never owned an IRA or 401k.
Never will.
I've never owned a Roth IRA or 401k,
and I never will.
'Cause I would prefer the best way.
And it is a max funded
indexed universal life insurance contract,
or contracts, because you can diversify with these,
and many people own several of these.
We have one client that has, I think, 16 or 17 of these now.
And so, you diversify into superior vehicles,
that allow you to accumulate your money,
totally tax free, not just tax deferred.
And then you can generate tax free income
at payouts of 8-10% typically,
without depleting the principle,
even if you live to be 120 years old.
Which means if you had $1 million nest egg
that could generate $80,000 a year to $100,000 a year
of tax free income,
from age 65 to age 120,
and you'll still have your $1 million nest egg, okay?
And so, we help many people do this
by using a properly structured,
maximum funded, indexed universal life insurance contract.
Where I've actually averaged 9.62% rate of return,
since 1980, okay?
So, I'm gonna try to keep this episode simple,
and I'm gonna tell you two stories of how a laser fund
helped these two couples
to be able to far outperform
where their money had been accumulated before they met me,
in traditional IRAs and 401ks.
So, the first story I wanna share with you
are two physicians.
And this husband and wife, they were both doctors.
One was a pediatrician and one was a orthopedic surgeon.
And they worked so hard,
and accumulated money into qualified plans,
like IRAs and 401ks or the like.
And, at retirement, they had accumulated $4.6 million
between the two of them,
in these yet to be taxed accounts.
And they came to one of my educational seminars
and realized, oh my heck,
we have painted ourselves into a corner,
a tax trap.
And of course that's what I teach people,
in our educational sessions,
on how to free themself from the tax trap,
that they've gotten themselves into
by sort of following the herd,
putting money in tax deferred IRAs and 401ks.
They realized they were never going to be
in a lower tax bracket.
They also agreed with us
that taxes in the future
would likely be higher.
Because whenever I ask Americans,
how many of you think that taxes in America,
in the future, will likely be lower?
I get nothing but crickets.
How many think they're gonna be the same?
One or two hands go up.
But when I ask, how many of you think
taxes will likely be higher in the future?
And a sea of hands goes up.
Because of what?
Irresponsible government spending,
and the printing of money.
So, why are we deferring tax,
in traditional accounts like IRAs and 401ks,
to some future perceived unknown advantage,
to withdraw our money down the road,
when, we all agree, taxes will likely be higher?
Well, people get there
and now they have to deal with this.
So, here they were with $4.6 million
in yet to be taxed IRAs and 401ks.
And sure enough, their advisor told them,
well now you have to continue to defer
until you are age 72,
and take out RMDs, required minimum distributions,
because they really didn't need the money.
They had other resources and investments.
And so, what do most advisors tell people?
Oh, well then defer,
take out the required minimum distribution,
starting at age 72,
and string it out during your life expectancy,
your spouse's life expectancy,
and then pass it down to your kids.
Well, your kids have to now get taxed
on that inherited IRA or 401k,
within 10 years.
So, I developed some software years ago
that illustrates that advice,
and why it's fallacious.
And sure enough, they were shocked
when they saw that by deferring
and taking out RMDs,
throughout their life expectancies,
and transferring it down to their children.
They had three children.
That they weren't saving tax.
They were going to pay through the nose.
In fact, at a minimum,
following the advice of their accountant,
even by the end of their lifetimes,
they would pay $2.6 million in tax,
on the $4.6 million, by continuing to defer.
And you know it's the best savings bond
the government ever came up with for themselves.
And that's why they tell you to do it.
Because why would they want to kill a partnership
where they get a piece of everything
you will continue to earn,
on those tax deferred IRAs and 401ks,
the rest of your life?
And so, the funny thing is,
when I showed them they were gonna pay
about $2.6 million in tax, at a minimum,
by the time they both checked out,
their life expectancies,
their accountant,
their advisor, said this,
well, they can afford to pay $2.6 million of tax.
They have the money.
And I said, well, let's ask them.
And I looked at both of them and I said, listen,
if I could show you how to save $1.2 million.
I can't save the full $2.6 million,
you just made too much money,
you saved too much.
But if you could save $1.2 million of unnecessary tax,
would you like to do that?
And they went, duh, yes.
And so I said, here we go.
So, we did a strategic rollout.
And we got the money out over a five year period.
And the taxes over and done with sooner than later.
And yes, we had to pay tax,
but not $2.6 million.
We saved them $1.2 million of that.
They did have to pay, you know, $1.4 million,
but I saved them $1.2 million of unnecessary tax.
What did we do with that?
We were able to take that tax savings,
and put it into what I call a family bank.
Now, I'm gonna gift you one of my best selling books
at the end of this,
you'll understand what a family bank is.
But this is where they were to take
that otherwise payable tax,
put it in their family bank,
and that's been generating $100,000 a year,
in their portfolio of IUL policies, laser funds.
$100,000 a year of tax free cash flow,
without depleting the $1.2 million.
Which is providing college funding,
scholarships, what have you,
for their children, grandchildren into perpetuity.
Family vacations with a purpose,
all kinds of things, in their family bank, okay?
That's money that would otherwise
have gone down the drain
in unnecessary tax.
And we have more than doubled
their net spendable retirement income,
by doing a strategic rollout.
They are extremely grateful
that they were able to redirect $1.2 million
of otherwise payable tax.
Well, the second story I wanna share with you,
is a couple in California.
And when I show them
how they ought to have at least 40%, maybe up to 60%,
of their retirement income,
not even show up on the front page
of their 1040 tax return.
They said, well, Doug,
why only 40%, or even 60%?
We're sick and tired of paying taxes.
We want 100%.
And I go, okay.
And so we did that in a five year period.
We were able to transfer money outta their IRA or 401ks.
They had about $6 million in their IRAs and 401ks, okay?
And they had lived in the bay area,
and they had a ton of money.
Yeah, they ended up paying
about $2.4 million in taxes,
over five years.
But they were gonna pay that much or more
by stringing it out.
And they realized, they understood the concept.
Just bite the bullet, pay the tax.
And we ended up with a net,
because we were able to keep the money growing,
we ended up with a net of $4 million,
out of that $6 million,
after paying tax of $2.4 million.
'Cause it grew by $400,000 and so forth.
So, here's the result.
They got their taxes over and done with.
Yeah, it hurt a little bit temporarily.
$2.4 million.
But they ended up with $4 million after tax.
That has doubled to $8 million now,
in the last seven and a half years,
in their portfolio
of indexed, universal life insurance policies,
what I call laser funds.
Now they have $8 million in their laser funds.
Actually, a little bit more than that.
And they have been earning, conservatively,
between 8% to 10% and even greater.
I'm just gonna stay simple here and keep it
let's say at 8-10%.
What's 8% on $8 million?
What's 10%?
$800,000.
They could withdraw between $600,000 to $800,000 a year
of tax free income.
The IRS will know they're receiving it,
but it's tax free.
It's been a sacred tax free cash cow,
in the internal revenue code
for over 108 years.
The IRS knows everything.
But the funny thing is,
they know they can withdraw $600,000 to $800,000 a year
of tax free income.
They go, Doug, we don't need that much money.
If it's tax free,
we don't need to withdraw $600,000 to net $400,000.
Or $500,000 to net $300,000 after tax.
We only need $300,000 to buy gas, groceries,
prescriptions and golf green fees.
So, they only pull out $300,000 tax free.
And the remaining $500,000 they're earning,
on their IUL policies,
is just adding.
So, their $8 million is growing
by a half a million here.
It's growing way faster
than they're taking money out.
So they're hedging against inflation in the process.
They said, Doug, this is incredible.
We don't even have to technically file a 1040 tax return.
Yeah, we took this couple
from the highest tax bracket,
in five years,
down to a 0% tax bracket.
We have done this for many, many people.
So, if you want to learn how to save a ton
of unnecessary tax,
and get 40%, 60%, maybe 100% of your retirement income
to be totally tax free,
not even show up on the front page
of your 1040 tax return,
you need to learn sooner than later.
Here's how.
I want to gift you a copy of this 300 page book.
It's been flying off of our warehouse shelves.
You do not have to pay $20 retail for it on Amazon.
I will gift you a free copy.
Here's how you claim it.
You simply go to laserfund.com,
laserfund.com,
or click on the link below.
You'll contribute a nominal amount
towards the shipping and handling,
I'll cover the rest of that cost.
And I'll fire out a hard copy to you.
It's actually two books in one.
This side is about 200 pages.
14 chapters with all the charts and graphs,
if you're a left brain learner.
If you're a right brain learner,
you learn by stories.
You can flip it over and read this one,
about a hundred pages, 12 chapters,
with 62 actual client stories,
like the ones I just told you.
If you wanna use your whole brain,
right brain and left brain, okay?
You can read both sides.
But here is the key to your brighter future.
And while you're in there claiming your free copy,
there's options there to listen and learn,
watch and learn, with audio and video education.
There's even regular online webinars that we conduct.
And you can even schedule a time to talk
with an IUL specialist,
to see how this strategy
can help you in your particular set of circumstances,
so that you can create your own story
on how you saved hundreds of thousands of dollars
of unnecessary tax,
and generated tax free income,
that will last as long as you do.
(bright music)