- Time is running out.
Get taxes over and done with sooner than later.
In this educational episode,
I'm going to talk about how to complete a strategic roll-out
probably sooner than later.
If you're watching this episode in the year 2023
I would start then and then do another one in 2024, 2025.
Why?
Because the Trump Tax Cuts of 2017 are set to expire
in the year 2026.
So stay with me.
You're going to be blown away with some insights
that I'm gonna give you in this episode.
(upbeat music)
So I'm Doug Andrew and I've been a financial strategist,
a tax minimization specialist.
Helping people prepare for long-term goals like retirement
so that they won't outlive their money.
Most retirees will be in danger of outliving their money
due to the negative impact of taxes,
inflation and market volatility.
And so I have spent a lot of my nearly five decades
helping people to prepare for a retirement,
so they will not outlive their money
by eliminating the big three dangers,
taxes, inflation and market volatility.
When they begin to realize
that if they've been saving very much money
they're not going to be in a lower tax bracket.
And that was the premise
that they've been socking away money
in tax deferred IRAs or 401(k)s,
but they haven't thought about it until now.
They've painted themselves into a tax trap,
is what I call it.
So this is why when they begin to come
and learn at our educational events
or maybe they read one of my books
and they hear about a strategic roll-out,
they go, "What's a roll-out?"
Well, it's not a rollover.
A rollover, in my opinion, is going from the frying pan
into the fire, so to speak.
That's taking money in 401(k)s
rolling them over to IRAs,
which most short-sighted, myopic advisors tell you to do.
"Oh, roll it over to an IRA, postpone until your age 72
and then take RMDs, Required Minimum Distributions,
if you don't need the money."
I think that's the worst advice for most retirees.
You're actually increasing the tax by spreading it out.
I like to look at the big picture.
So for years I've been advising people
to look at a strategic roll out.
This is where you're getting your money
out of those IRAs or 401(k)s.
You're getting the taxes over and done
with sooner than later.
In today's lower tax rates,
rather than thinking taxes in the future will be lower.
Most people are not in lower brackets.
They don't have the deductions anymore they once had.
And so Congress, because of irresponsible
government spending and the printing of money,
most people agree that taxes in the future
will likely be higher.
So you don't wanna sit there and think,
"Oh, I'm gonna keep postponing or procrastinating
to some future perceived unknown advantage
and then withdraw my money down the road."
When you probably will agree
that taxes will likely be higher.
That doesn't make sense.
So I usually recommend
that people start a strategic roll-out,
ideally five years before they retire.
Now, if you're watching this and you're less than five years
from retirement, or maybe you're already retired,
it's not too late.
The sooner you start the better.
But there are impending events that may motivate you
to start getting money out of those
IRAs or 401(k)s sooner than later.
Let me give you an example right now.
Donald Trump, when he became president,
in 2017 he passed the Tax Cuts and Jobs Act
and that lowered tax brackets and that is set to expire
or sunset at the end of the year 2025.
So if you're watching this episode and it's the year 2023
you've got 2023, 2024, 2025
where you could get taxes over and done with
and reposition the net after tax withdrawal
out of your IRAs or 401(k)s
into something tax free from now on.
And you could get away with paying only 22% or 24% in tax
because at the current tax thresholds,
as of the recording of this episode,
I'm talking about the year 2023.
A married couple filing a joint tax return
has room up to nearly $400,000 of income
to pay only 24% in tax.
And that's not on all dollars retroactive
back to dollar one.
But see, at the end of 2025,
that 24% tax rate is gonna jump to 28%.
Now some people may say, "That's only 4% more."
Yeah, right.
But if you change from paying $24 on every a hundred bucks
of taxable income to $28, that is another $4.
$4 increase is actually a 16.66% increase
in the amount of money that you will pay out in tax
in the year 2026 versus 2025.
So you may want to take advantage of getting money
out of those IRAs or 401(k)s in a 22% bracket.
Otherwise, that's gonna jump to 25 or a 24% bracket
'cause that's gonna jump to 28.
But also I've noticed that sometimes people,
they get advice from their CPA.
Well, this advisor you're talking to is going to force you
into a higher tax bracket.
Listen, think about it.
If you were to take out
a couple of hundred thousand dollars and pay 24%
and it moved you into that 24% bracket from a 22,
yeah, that's 2% more.
But if you wait around, you may be paying 4% more or higher,
but there's another factor to consider.
Maybe you can get money out and the taxes over and done with
while your account values are less.
See, that's why it would behoove you to pay taxes
on an account value in your IRAs or 401(k)s
of maybe 700,000 rather than waiting
two or three or four years,
and it is grown to a million.
And so that's why sometimes I ask,
"Would you rather pay a lower tax rate on 700,000
or wait and pay a higher tax rate on a million?"
Hello, no.
If you're worried about waiting for the market to rebound
why don't you ride the market back up tax free?
Why don't you get taxes over and done with sooner than later
at a lower tax rate on lower account values
and then later on you will not have to pay tax
at higher rates on a higher amount of money.
Ride the market back up totally tax free.
People go, "Hmm, well how do I look into doing that?"
Well, you need to check out with a tax strategist.
And I point my students to a very small handful
of tax strategists that I've trained that help you
be able to understand how to perform a strategic roll-out.
I designed very sophisticated software
that actually shows you the darkness of the night,
so to speak, if you keep deferring until age 72
and then take RMDs throughout your life expectancy
and your spouses and then leave behind the remainder
to your non-spousal heirs
and they have to pay tax on that within 10 years.
People are flabbergasted when they see how much tax
they will pay by stringing it out.
And then I show them the brightness of the day
if they will do a strategic roll-out
and get the taxes over and done with sooner than later.
And they are shocked
at how much they will save in tax by doing that.
And then how much more their net spendable income will be
in the tax-free portfolio.
Now, the tax-free portfolio I would recommend
would be a portfolio of maximum-funded
indexed universal life insurance contracts.
These are the vehicles where I've been able to average
rates of return since 1997 of 11.17%, netting 10.07.
Now sometimes people say,
"Well, I've never seen an insurance contract do that."
Well then you haven't seen one structure correctly
and funded properly.
But see if you're earning a net rate of 10%
and your money doubles every 7.2 years
based on the rule of 72,
but it also means every million dollars
that you have in a portfolio of IUL contracts
that can generate a hundred thousand dollars a year,
a 10% payout without depleting principle.
And we've had many people actually experience that
with indexed insurance contracts.
Now those IUL policies have to be structured correctly
and funded properly.
And so if it is structured correctly and funded properly
it is now deemed a LASER fund based upon my criteria.
A LASER fund is an acronym.
LASER means liquid assets safely earning returns.
And so this is where you can earn a rate of 11 and net 10,
if you earn nine you net eight,
if you earn 16 you net 15,
if you earn 25 you net 24 in any given year.
And I'm talking about real rates of return
that our clients have achieved with IUL.
And so a LASER fund is described in this book
called "The LASER Fund."
So if this is intriguing you
and you don't wanna kick yourself
for missing out on this opportunity
and you want to start a strategic roll-out sooner than later
you need to learn about where to take that after tax money
and put it into a property structured LASER fund
and see some examples of strategic roll-outs
and maybe read some stories of people
who have saved a quarter of a million,
a half a million, over a million dollars of unnecessary tax.
We do this all the time.
These stories are in this book.
So I wanna gift you a copy of this 300-page book.
It retails for 20 bucks on Amazon.
This is not about me, this is about you.
And so I want to gift you a copy.
And so you can claim your free copy by going
to laserfund, L-A-S-E-R fund.com or click on the link below.
You contribute a nominal amount
towards the shipping and handling.
I require a little bit of skin in the game.
I'll cover the rest of that cost.
I will pay for the book.
I'll fire out a hard copy to you via a priority mail.
When you're in there
if you like to listen and learn or watch and learn
there's options there for audio and video.
Check out our educational webinars
that we hold on a regular basis.
They're free.
You can even plug in yourself for a free consultation
and analysis with an IUL specialist
at no cost or obligation.
And they can show you how a strategic roll-out
may work for you in your particular set of circumstances.
So claim your free copy of this 300-page book,
study it, read the stories,
and see if this makes sense for you.
If you're over age 59 and a half
this should be a no-brainer.
Get the taxes over and done with sooner than later.
And if you're waiting for the market to rebound,
don't make that mistake.
Write the market back up, again, tax free.
(upbeat music)