The fourth of five ways to stack up an extra million bucks. In this episode, I'm going to address
how to reposition assets to double rates of return. Get ready, I'm going to show you
some phenomenal things that a lot of people sit there with their mouths open, "I didn't know that".
So, my name's Doug Andrew and I've been a financial strategist and a retirement planning specialist
for more than 48 years and I've been honored and very grateful for the receptivity of a lot
of the books that I've published. In fact, I've written 12 books thus far. I think I'm going to
release a new book every two years at least the rest of my life and in this episode, I want you
to get ready and put on your seat belt because I'm going to share with you just one of five
ways on this channel on how to stack up an extra million bucks. Now, when we talk about repositioning
assets a lot of people have assets that they don't even know they have. So, get ready, I'm going to
uncover assets in this episode and then I'm going to show you how to optimize those assets
and give them a new life and also minimize taxes. Then I'm going to proceed to show you
how you could reposition some of those assets to increase the liquidity safety and rate of return
and by doing that and then just socking away you know a couple of grand a month
you can accumulate over a million dollars. By doing that in just you know 10 years based on the
average rates of return that I've earned and you can do this too. But you do this for your lifetime
and you will end up with an extra million, 10 million. We have some people that now have 10
million bucks which can generate a million dollars a year of tax-free income without depleting
that 10 million nest egg and they started out doing what I'm going to share on this episode.
So, let's start with repositioning non-performing or underperforming assets. What does that mean?
Well, there's a lot of Americans that have assets that they don't think they have access to and
many times when I meet with these people. They have been working at a particular employer or
maybe a previous employer and they had a 401k and they left that employer and they just let
that money sit and grow and they go, "Well, I wasn't going to touch that until at least I'm 59 and a
half years old or whatever and they look in there and they have you know 250,000 bucks. They're not
even thinking of that because they're thinking if they touch it there will be you know a penalty or
what have you or maybe you have a current one at your employer but you're not very happy? Why
would you want to have a 401k and defer tax to some future perceived unknown advantage when we
all pretty much understand taxes will be going up. That doesn't make sense. In fact, it would be
better to get the taxes over and done with sooner than later and reposition that. Because a lot of
people on their 401ks have only been earning one, two, or three, or four, percent rate of return.
That's pathetic. You cannot be rowing upstream at the rate of one, two, three, or four, miles an hour
when the rate of inflation is coming down at 12 or 15 and if you think the rate of inflation is only
three or four. No... when the consumer price index as reported by the federal government
is stated as being four or five you need to triple that. Because way back in the 80s when inflation
got out of hand because of Jimmy Carter and it hit 14%. The federal government changed the way
they calculate inflation or the consumer price index and they actually compare it apples to
oranges instead of the same basket of goods to the same basket of goods. Which means, the government
didn't want to pay social security recipients. The actual cost of living or inflation rate
they couldn't afford it. So, they change the way they report it and they can actually compare
the price of an eight-ounce filet mignon steak last year to eight ounces of hamburger this year
and they've been doing it. When you're running upstream at the rate of one, two, three, miles
an hour that means three percent interest and the current of inflation is coming down at 10
11 or 12 you're going backwards. So, you want to optimize assets and reposition them to increase
the liquidity, the ability to access your money. The safety, because a lot of people have their money in
401ks and it's subject to market volatility and many lost up to 40 percent in the value of their
IRA's or 401ks in 2008. Before I go into rate of return, if this is already resonating click like,
share with somebody who ought to learn from this and subscribe to this channel. Because I post
a new educational video almost on a daily basis and it's free. Let's talk about rate of return. The
average rate of return with my favorite vehicle which I call the laser fund laser is an acronym
that I use that stands for liquid assets safely earning returns. My average rate of return is 9.62%.
Now, let's round it down to 9.6. Your money will double every seven and a half years at 9.6. Now,
there are years I have earned 25 even 61 but when the market crashes you don't lose because your
money is not invested in the market. It's not at risk in the market. It's a strategy called indexing
and I will show you where you can learn about that at the end of this episode. Let's just use
that average return of 9.6 because it's real. It's historically accurate based upon my experience
when indexed UL okay indexed universal life was first introduced in 1997. Now, I call it the laser
fund. So, let's say that you had money sitting in a bank or credit union or you sold a rental property
that you're just sick and tired of fixing toilets, evicting tenants, taking out the trash. Let's say
you have money that's not performing very well in a 401k. Maybe you're inheriting some money
or whatever. When you start to look at these underperforming assets let's say you have
$250,000 that you can reposition to increase liquidity safety and rate of return and the tax benefits.
You deposit 250,000, you reposition it. You're taking it from this pocket and put it over to this
pocket to improve the liquidity, the safety and the rate of return and this is for long-term goals
five years or longer. You're going to see why the laser fund is probably the best choice to do that.
Now, on top of that, 250,000. Let's say that you're stocking away 2,000 bucks a month because that's
what you were putting into maybe your 401k or you and your spouse you were stocking away
24,000 a year or maybe you were putting 2,000 a month into some type of a savings or in any
other investment out there that's just not really performing for you. So, what we have very simply
is a lump sum of 250,000 and now you're adding 2 grand a month. Well, what does that grow to at 9.6
percent. In 120 months it will grow to a million 50,000 bucks, that's an extra million dollars.
You started out with a lump sum. Now, there's another episode on this channel where I talk about
if you don't have a lump sum you can talk away five thousand a month for 120 months and you'll
end up with over a million dollars. But if you have access to non-performing or underperforming assets
just by putting that 250,000 over into the laser fund now you don't need to suck away
5,000 a month unless you have it. If you don't have it but you can sock away 2,000 a month you'll
still end up with over a million dollars by doing that because you're kick-starting the accumulation
with a lump sum and then you're adding systematic accumulation. Does that make sense?
So, by doing that you are able to accumulate your money tax-free if you use the right instrument.
If you need to access money for any reason at any time you can do it without triggering
tax by using the laser fund. Even if you're under age 59 and a half. But
when you start taking out money not only do you not have to pay tax. The IRS will know you're
receiving it but they know it's tax-free. It's not even worth auditing. It's been grandfathered
in the internal revenue code for over 108 years now under three sections of the code
72(e), 7702, and 101a and I'll show you where you can learn about this. But at the end of the day
when you pass away. If you leave behind a million. If I died right now. Now, I'm an old geezer.
I'm just about 70 years old and people go, "He colors his hair", n,o I don't. I am 70
and if I died tomorrow every million would blossom to about two and a half
million and transfer tax-free to my wife, my kids, my grandkids, at church, and charity.
Nothing else in the internal revenue code does that. Sound too good to be true? It isn't. I want to
gift you a copy of this 300-page best-selling book that's been flying off of our warehouse shelves.
Here's how you can claim your free copy. You go to laser fund l-a-s-e-r- fund com or click on the link
below. You contribute a nominal amount towards the shipping and handling and I'll cover the rest of
that and I will pay for the book. I'll fire out a copy to you. There's also options there to listen
and learn, watch and learn, and I would also check out some of the educational webinars that we do in
online courses. But this is actually two books in one. This side is about 200 pages and 14 chapters
with all the charts and graphs if you're a left brain thinker. If you're a right-brain thinker you
learn by stories and examples you flip it over and read this one which is about 100 pages and there
are 62 actual stories of how the laser fund can be used as an emergency fund, real estate, a working
capital account, business owners. It knocks the socks off of IRA's of 401ks all kinds of uses for
the laser fund. It's like a financial swiss army knife and you ought to search on this channel for
a few videos about that metaphor. But claim your free copy and here is to your brighter future.