- Don't get robbed coming down the mountain.
In this educational episode,
I'm going to address what causes most retirees,
to run out of money.
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How many people have scaled Mount Everest?
Over 4,000.
In fact, nearly 5,000 people have scaled Mount Everest.
Do you know how many people have died,
in that attempt or while doing that?
Over 250 people.
Now, let me ask you, do you think most of them died,
going up the mountain or down the mountain?
Yeah, down the mountain.
Well, I have found that a lot of retirees, they get hurt.
They die financially going down the mountain of life,
retirement because they didn't see it coming.
The negative impact of taxes,
they thought they were gonna be in a lower tax bracket
and if they save very much,
they're not in a lower tax bracket
and they've killed their deductions.
Congress keeps raising taxes,
because of irresponsible government spending
or the printing of money.
The other danger is inflation,
which cuts the purchasing power of the dollar in half,
at 3% inflation,
you know, it was manageable, but then inflation hit 5%,
which means it's gonna double every, you know, 14, 15 years.
But when inflation starts to hit 7.2%,
it's every 10 years.
10%, the cost of living doubles every 7.2 years.
Well, the actual real rate of inflation,
in the year 2021, 2022 was over 15%.
In fact, I think it was as high as 25%.
But the government does not report,
the cost of living increase on gasoline,
prescriptions and so forth.
They throw that out.
They changed that clear back in the 1980s.
So when they reported inflation at 8.7%,
because they don't want to pay social security recipients,
the real cost of living increase,
you can pretty much triple whatever they report it to be.
So let's just say it's 15%,
15 into the rule of 72 means the cost of living,
will double in 4.8 years.
Well, people coming down the mountain of life in retirement,
they get hurt because taxes take, you know,
25, 30, 33%, 40% or more,
they have to pull out $150,000 out of an IRA or 401K,
to net a 100,000 to buy gas and groceries.
And that a 100,000 maybe,
they didn't need that five years earlier,
they got by on 50,000, but the cost oblivion is doubled now,
so that now they need a net of a 100,000 after tax,
to buy the same gallons of gas and loaves of bread,
that 50,000 bought five years earlier.
So taxes and inflation cause a lot of people to get hurt,
coming down the mountain of life
and people outlive their money.
The third is market volatility.
And so a lot of people run out of money,
because money in the market,
the market goes down and comes up.
And so people panic because Wall Street was never designed,
to create predictable income.
And so DALBAR who studies investor behaviors,
says if you just bought and held
and left your money in the market
and just sort of weathered those 20, 30, 40% drops,
in the market, you should average, you know, 9%.
Well, people, they can't stand to do that.
And so when the market starts to go down, down, down,
they sell when it drops 25, 30, 35%, they sell low.
And then they wait, wait, wait,
until the market comes back up quite a bit
and then they buy back in high.
So the average return,
is only about three and a half percent.
And that's why the financial services industry,
came out with this 4% rule.
They only want you to pull out 4% a year.
Well, golly, a million dollar nest egg,
only generating 40,000 a year before tax,
after tax even in a 25% bracket,
is only giving you a 3% return.
That's pathetic.
The reason why I like max funded indexed universal life,
is because I can earn a net rate of return of 9 or 10,
9% is three times as much as 3%.
90,000 of tax-free income is way better,
than 30,000 of after tax income out of an IRA or 401K.
So for years, this is why I have been telling people,
you know what, I don't want you to outlive your money,
so let's protect it from the negative impact of taxes,
inflation, and market volatility.
So when we're talking about this, I explained it in my book,
the Laser Fund, but let me refer you to another story,
from one of my favorite movies from years ago.
If you remember the 1970s western film,
featuring Robert Redford and Paul Newman.
It was Butch Cassidy and the Sundance Kid
and they were you know, robbing trains and so forth,
and Mr. EH Herman of the Union Pacific Railroad,
was hiring professional trackers.
And so things got pretty heated.
So Butch and Sundance went to South America
and they ended up in Bolivia.
Well, they were robbing banks in Bolivia,
until the Bolivian government sort of got on their tail.
And so they decided to go straight, okay?
And so they hired out themselves as payroll guards,
for a gold mine for their payroll.
And I love this scene,
because it illustrates the point I'm gonna make right now.
On the first day on the job,
they're going down the mountains, so to speak,
to get the payroll, the gold.
And Butch and Sundance,
are being led by their leader on a mule.
And he's up ahead of 'em,
but they're back there already and they're sort of going,
I'll bet that bandits are up there,
behind the rocks on the right.
Oh, I'll bet they're behind the bushes up there on the left
and they're just looking out for the bandits.
Now here's some professional bandits,
looking out for where the bandits are hiding
and their payroll boss turns around
and looks at 'em and says, morons, I have morons on my team.
They don't rob you when you don't have the money.
They rob you when you have the money.
Don't worry while we're going to get the money,
worry when we have the money.
And sure enough, they were robbed
and the scene broke out,
where they were shooting all of the bandits,
when they finally had the money.
The point is this,
when the government is hard up for tax revenue,
when they have been spending too much money,
printing too much money,
where do they go to get money to get revenue?
They go to the people who have the money, okay?
And that's usually retirees who have saved money.
So I think it's unfair,
but that's why the government comes after retirees,
who have the money.
Oh, well, okay, let's tax people.
And it's the people who have the money.
So all I'm saying is I want you to be protected,
from the government robbing you of your hard-earned savings.
I'm a red blooded American.
I think we should I'll pay our fair share of tax,
but frankly you could just pay the tax
and roll the money over to a max funded IUL policy
and accumulate your money like I have,
at a net internal rate of return averaging over 10%
and it's totally tax free.
Now you're immune from taxes,
you link your returns to the things that inflate.
I don't like inflation anymore than anybody,
but it doesn't hurt me,
because I'm linking my returns in indexed universal life,
to the things that are going up in price.
So I've always been able to earn a rate of return,
greater than the inflation rate at the time.
You can't be rowing upstream at the rate of two, three,
or four or five miles an hour.
When the current of inflation starts to come down at seven,
10, or 15%, you're going backwards.
The third thing is by using indexing,
that's not an index mutual fund.
Your money's not in the market.
You get to participate when the market goes up,
but not lose when the market goes down.
I love helping people eliminate those three dangers,
taxes, inflation, and market volatility,
by utilizing a max funded,
indexed universal life insurance contract,
structured correctly and funded properly.
If it is, it is deemed what I call a laser fund.
Laser is an acronym that stands for,
a liquid asset safely earning returns.
This book shown on the screen here,
is book number 11 out of 12 that I have authored so far
and it has been flying off of our warehouse shelves.
It's actually two books in one.
This white covered side is about 14 chapters,
a 100, 200 pages actually, that has all kinds of charts
and graphs and explanations in it.
But this orange covered side,
you flip it over and this has 12 chapters,
a 100 pages with 62 actual client stories.
This is for the right brain learner.
Now, if you want to use your whole brain,
these are high concepts coupled with high-touch,
right brain and left brain.
And so I would love to gift you a copy of this book.
And so you can claim your free copy,
by simply going to laser fund laserfund.com.
Click on the link below.
You 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.
While you're in there claiming your free copy,
if you like to listen and learn or watch and learn,
there's audio and video formats available.
Check out the free educational webinars.
We teach on a regular weekly basis.
And also if you want, you can schedule an appointment,
with an IUL specialist to see how,
a properly structured laser fund,
can benefit you so that you can go down the mountain safely
and not get robbed when you have the money.
It will also show you how to accumulate the money
and protect it.
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