This is better than a 401(k).
In this episode, I am going to address 401(k) changes proposed by Biden.
Learn what's better.
So, my name is Doug Andrew and I've helped many, many thousands of people over the last
4 and a half decades prepare for a comfortable retirement and not outlive their money.
I've always been concerned because so many Americans I think are duped into putting their
hard-earned money into tax-deferred accounts like IRAs and 401(k)s.
The premise years ago was "Oh!
You get a tax break on the seed money".
Just like if you're a farmer and you bought seeds in the springtime and you plant, you
cultivate.
And in the fall of life, you're going to harvest your crop.
Well, with the traditional IRA or 401(k), you getting a tax break on the seed when you
buy it.
But later on when you sell your harvest in the fall, now you agree to pay tax on what
you sell your harvest for.
Hello?
If I were that farmer, I'd rather just pay tax on the seed and enjoy the harvest without
tax.
So, the traditional way would be an IRA or 401(k).
What was the premise?
"Oh, you'll be in a lower tax bracket when you retire."
That has not been true or axiomatic for more than 25 years now.
If you have any type of a respectable retirement next egg...
Most Americans find themselves in a high or higher tax bracket when they retire as they
were ever in when they were earning the money.
Even school teachers.
Why?
Because you're killing your tax deductions as you've been going.
Later on in retirement, you paid off your house.
You don't have that deduction anymore.
The children are gone.
Or if they move back home as adults, you can deduct them anymore.
You're not contributing money to IRAs and 401(k)s.
You don't have that deduction anymore.
If you're a business owner, you don't have those deductions anymore.
And Congress keeps raising taxes.
I can prove to you mathematically a traditional IRA or 401(k) is not a good way to go.
It used to be maybe okay.
But I have a little ditty that goes good, better, best.
Never let it rest until good gets better and better gets best.
I can show you that if you think that taxes are going to be higher in the future that
a Roth IRA and 401(k) would be a better choice.
Just pay tax on the seed money and enjoy the harvest without the tax.
But I've never owned a IRA or 401(k).
I never will.
I've never owned a Roth IRA or 401(k).
I never will.
I'm going to show you why.
Roths only have 2 benefits.
My favorite vehicle which I call the Laser Fund has 6 benefits.
And I'll show you the difference.
Why would I own a Roth when I can have the 2 benefits of a Roth and 4 additional benefits
that the Roths will never have?
But let's go back to this whole premise.
When people put money into these vehicles, they think that that's the best way to go
and they just follow the herd.
And then they have this wake-up call if they have saved very much because they're not in
a lower bracket.
And if you can't see the writing on the wall, taxes are going through the roof.
So, with all of these tax increases, what would be far better?
Let's go through this.
And especially based upon market volatility because of what the current Biden administration
is proposing, mark my word, we're going to see a recession.
We're going to see market volatility.
And it's not like the great recession that was from 1999, this is starting in November
of 1999.
I'm going to go 12 years out to the year 2012.
Most Americans who have their money in IRAs and 401(k)s in the market.
And they save until they have a million dollars.
At the turn of the century, what happened?
They saw that million-dollar nest egg dwindle in value by 30 and 40 and 50 percent.
They felt like they had lost their future.
Bam, bam, bam!
It took 4 years until 2007 to make back what they lost.
They had to put off retirement 7 years.
Now, none of our clients lost a dime.
They may not have made very much when it was going down.
But they start making money again as soon as it turned around.
They were clear up here.
And again, in 2008, as Warren put it, he said, "When the tide went out, it revealed who is
swimming naked" is what he said.
People were not protected with their money in the market in IRAs and 401(k)s.
They lost 40% again.
It took 4 years until 2012 to finally come back and have $1,046,800 to show for the million
they started with.
People using my favorite vehicle call the Laser Fund, they ended up with like 2 and
a half million at the end of that time period, tax-free.
When the market went down, they didn't lose a dime.
When the market turned around, they started making money again.
They ended up with 2.5 million instead of just getting back to break even.
That's called indexing.
So, this is where I propose people have their money in a max-funded indexed universal life
insurance contract.
And I link my returns to an index where I don't lose if the market goes down because
my money is not at risk in the market.
When the market comes up, I make money.
So, I recommend to many people they do a strategic roll-out.
Get the money out of those IRAs or 401(k)s because your current tax bracket is likely
the lowest bracket you will ever be in.
So, what's the strategic roll-out?
It's not a rollover.
A rollover is like going from the frying pan into the fire as far as I am concerned.
Before I share what a roll-out is, if this is intriguing you, I would recommend that
you click like.
Share this video with others that you know would benefit.
And post a comment.
But most importantly subscribe.
Click that little bell.
You'll be notified every time I post an in-depth answer to a financial question like this on
this 3-Dimensional Wealth channel.
Because I am passionate about educating people like you.
And stay with me to the end and I'll gift you a copy of my most recent 300-page bestselling
book called The LASER Fund.
So, a strategic roll-out means we're getting our money out of those IRAs or 401(k)s and
the taxes over and done with sooner than later.
This is not a rollover.
A rollover would be like taking money in 401(k)s and rolling it over to an IRA and continuing
to postpone, procracstinate.
Maybe if you don't need the money until you're...
It used to be 70 and half.
Now it's age 72.
And then you have to start taking out money.
Or else the government, the IRS will penalize you 50% on what you should've pulled out on
top of the tax.
Did you know that?
And so, those are called RMDs.
O"h, take the required minimum distribution."
That's the worst advice I've ever heard.
I have software that shows the darkness of the night if you postpone until you're age
72 and you take RMDs the rest of your life expectancies between you and your spouse?
You will be shocked the amount of tax you will pay by stringing it out.
The government wants you to do that.
They want to have a permanent tax lien on what you will ever, ever, ever earn on that
account as long as you live.
Figure it out, folks.
You want to do a rollout.
Now, people hear this and they well, "What about just rolling over to a Roth?"
Because then you pay the tax.
And now it's tax-free from now on.
It's a step in the right direction.
That's better but it's not the best.
Here's why.
Roths only have 2 benefits.
Number 1, your money accumulates tax-free in a Roth.
But it does in a Laser Fund too.
You can withdraw your money income tax-free out of a Roth.
You can do that in a Laser Fund.
In fact, you've had those 2 benefits in a Laser Fund which is a maximum-funded index
universal life insurance contract for 107 years.
Roth's have been only around since 1997.
What are the 4 additional benefits of a Laser Fund?
With your contributions, you can deposit larger sums.
And you can make up for years you didn't put in the maximum.
You can put it 30,000; 50,000; 100,000.
If you're a business owner, you can design a Laser Fund to accommodate 300,000.
We have people putting in a million a year.
You can't do that with a Roth.
In fact, if you make too much money, you can't even qualify for a Roth.
This is why savvy CPAs and tax attorneys refer to the Laser Fund as the Rich Man's Roth.
You don't have to be rich to have a Laser Fund.
You can set one up for 500 bucks a month.
But rich people don't qualify to have a Roth.
SO, they call the Laser Fund the Rich Man's Roth because your money accumulates tax-free,
you can access it tax-free.
But you can put in 300,000 if you want.
If you don't you put in 300,000.
You have 270,000 of room you didn't use.
You can put that 270,000 in anytime you want.
A year, 2, 3, 5, 10 years down the road.
You can't do that with a Roth.
If you don't use the room in a given year, you'll lose it.
But I love this benefit.
If you need to access money out of the Laser Fund for any reason, any reason at all, you
can.
There is no IRS penalties.
If you touch the money you put in a Roth in the first 5 years or before age 59 and a half,
there's a 10% penalty.
I've had people put 300,000 into the Laser Fund and 30 days later pull out $250,000 tax-free.
There's no penalty.
See, I want flexibility.
You can't do that with the Roth.
Using indexing strategies with the Laser Fund, you use indexing simply put you're able to
benefit when the economy is going up, the market is going up.
But when the market crashes, you don't lose because your money is not invested in the
market.
Your returns are linked to the market.
But when it goes down, you don't lose.
When the market goes up, you benefit.
Please look at the other episodes on this very channel about indexing because it's very
powerful.
Or you can learn about it in the gift I'm going to give you here in just a moment.
So, you're protected when the market goes down.
The last benefit, in the Laser Fund, when you ultimately die, because none of us are
getting out of this life alive.
We're going to die someday.
Any money that is left in the account when you die blossoms in value, increases in value
and transfers income tax-free.
I am just about 70 years old.
If I died in an accident, every million dollars I would have in my portfolio of Laser Funds
would instantly blossom to about 2 and a half million.
And transfer incomes tax-free to my wife, my kids, my grandkids, a church or charity,
boy scouts...
Whoever I want to leave it to.
There's not a Roth around that will do that.
People go, "A million blossoms to 2 and a half million?
How much does that cost?"
Well, nothing is free.
But it doesn't cost me anything.
It's coming along for the ride.
It's being paid for with a minuscule portion of money that would otherwise go out the window
in unnecessary income tax.
I'll take as much insurance as I can get if it doesn't cost me anything.
Okay?
We don't object to insurance benefits.
We object to paying for them.
So, let me show you how you can learn about this.
But before doing so, let me just make sure I connect the dots.
Perhaps by learning about this, you can move like this couple did from having $200,000
of taxable income.
This was a couple that came to me.
And this has happened numerous times.
And they come in at retirement because at retirement planning, there's something totally
different than maybe what you did for retirement.
And this has happened to me hundreds of times where people come in and say, "We have 40,000
of income coming from social security or maybe a teacher's pension or what have you.
The other 160,000 is this portfolio with our financial advisor, an asset manager in the
market, IRAs and 401(k)s, mutual funds.
And so, we have 200,000 of annual income."
And I go, "Way to go.
Way to go!
There's one problem, though."
They go, "What's that?"
And I go, "It's all showing up on the front of your 1040 tax return."
In other words, you're paying 54,000.
In 27% tax bracket, you're paying $54,000 in tax on that.
You're only netting 46,000 to buy gas and groceries, prescriptions, and golf green fees.
Well, they said, "Is there a better way?"
I go, "Yeah.
In 5 years, doing a strategic rollout, we were able to transfer out 60% of this, 120,000
of that 160,000 over to a Laser Fund between the husband and the wife.
And so, after 5 years, they still had their 200,000 of income.
They had 40,000 of guaranteed income and 40,000 coming out of the money they wanted to still
play with in the market.
But 120,000 was transferred over to a portfolio of Laser Funds between the husband and wife.
And that was tax-free.
In fact, they were actually earning more than that.
But I wanted to just compare apples to apples.
They have the same 200,000 of income.
The IRS knows they're getting this 120.
But they know it's tax-free.
You can learn why it's tax-free.
They only pay 21,000 in tax on these 2.
They have a net of 178,000 to now buy gas and groceries.
If you do the math, if they live, one of them lives another 25 years, I saved them over
$800,000 in taxes the rest of their life by doing a strategic rollout.
I have a chapter in my book that gives several examples and stories of how this works.
So, here's how you claim your free copy of my most recent bestselling book.
Maybe you can save this much or more.
32,400 a year in taxes.
Would that be worth it reading a book?
Or studying or watching it?
Because I have done a video version in a masterclass.
So, here's how you can claim your free copy.
If you simply go to Laserfund...
LASERfund.com.
Click on the link below.
And you contribute a nominal amout towards the shipping and handling.
I'll cover the rest of that cost and I'll pay forn the book and I'll send out a copy
to you.
And in the Laser Fund, it's actually 2 books in 1, the white side is 200 pages, 14 chapters
with all the charts and graphs and explanations of how to diversify and create the foundation
for a tax-free retirement.
If you learn by stories, you flip it over and read this one --100 pages, 12 chapters,
62 actual client stories.
So, get empowered.
There's options there to listen and learn, watch and learn.
But this is your first step towards your brighter future and how you can do something far better
than worrying about the changes that President Biden wants to make on 401(k)s.
Because there is a better way to accumulate your money totally tax-free.