- Can you minimize taxes in 2023?
Absolutely.
In this educational episode I'm going to disclose
if you don't, you're gonna be left in the dust.
Stay with me.
You'll understand how to perform
a strategic rollout sooner than later.
(exciting music)
I'm Doug Andrew.
I've been a financial strategist
and retirement planning specialist now
and a tax minimization specialist for nearly five decades
and I help people prepare for a comfortable retirement
so that they will not outlive their money.
Now, why do most Americans outlive their money?
It's due to three big dangers, one, two, or all three.
The first danger is taxes, okay?
And if you can't see the writing on the wall
because of irresponsible government spending
in the printing of money, taxes are going up.
We're talking about income taxes, estate taxes,
capital gain taxes, corporate taxes
and also the hidden tax, inflation.
Inflation is the second big danger that causes most retirees
to outlive their money because at the current real rate
of inflation, which is over 15%, the cost
of living will double in less than five years.
So if you're gonna need in less than five years $200,000
to buy the same gallons of gas and loaves of bread
that $100,000 buys today you better have a strategy
that will help you outpace inflation or keep up with it.
The third big danger is market volatility.
Market volatility usually happens because
of the government causing these recessions and volatility
in the market because they are spending money like crazy.
So if you're not aware of what's been happening,
maybe your head's been in the sand
but generally the government through the IRS brings
in revenue, Internal Revenue Service.
And in 2019, 2020, the IRS would collect in revenue
usually about 3.8 trillion.
They would refund about 800 billion in tax refunds.
And they were netting $3 trillion.
Well, because of Covid-19, they basically spent
in the unemployment benefits
and what have you, double what they brought in.
They spent more than 6 trillion.
Now, come on, if you made $100,000
and you spent 200,000, you gotta do something
to pay off that extra 100,000 you borrowed.
No, they didn't do that.
Instead they said, oh, this is a good excuse
to pass a whole bunch of other spending measures.
And so they passed all kinds of spending
where basically they're spending about 3 1/2 times
what they bring in.
It would be like if you were making 100,000
now they're spending 350,000.
Well, for us, you'd have to file bankruptcy or something.
See, well, the government they simply print money
and they raise taxes.
And so this is what's going to happen
and I want you to be immune from those as much as possible.
Now, if you're already retired I can help
you really, really well.
If you're approaching retirement, I would strongly recommend
that you begin to convert as much of your money
that's accumulating and that you're gonna be accessing
to tax free, not tax deferred accounts like IRAs or 401ks.
And so when I go out and I teach the general public
how to maximize a rates of return
and minimize taxes one of the strategies
that most people want to embrace is
what I call a strategic rollout.
Now, this is not a rollover, okay?
A rollover is like going
from the frying pan to the fire, so to speak.
This is where you might have money in 401ks, and then
as you approach retirement, you roll them over to IRAs.
Why?
Because your advisor said, oh, if you don't need the money,
keep deferring thinking you're saving tax.
That's very myopic, shortsighted.
You're not really saving tax in the long run.
You're continuing to defer, procrastinate,
put off and compound the problem.
So, if you say, well
how much can I save in tax this year?
Well then don't take anything out.
And then when you're 72
just take out RMDs required minimums.
Well, in the long run, that doesn't save you tax.
If you actually added up the taxes you'll pay by taking
that advice of RMDs, postponing, deferring
till you're 72 and taking RMDs,
most people are flabbergasted with the amount
of tax they'll pay out to their life expectancy
and their spouse's life expectancy.
And then as it transfers down to their heirs,
they have to now get it out
and the tax is over and done with within 10 years.
They can't wait until they retire necessarily.
People are shocked how much tax they'll pay by doing that
but that's what most people are duped into doing.
Well, I say, no, no, no, don't do that.
Do a strategic rollout.
Get the money out sooner than later
in today's lower tax brackets and get the taxes over
and done with and reposition the net after tax money
into something that's gonna be tax free from now on.
And at the end of the day, when you die,
you'll be reimbursed or your spouse
and your kids will be reimbursed any
of the taxes you did pay.
So you're not gonna be out anything.
You're gonna come out ahead and people say
that sounds too good to be true.
What are you talking about?
You're doing a strategic rollout
to max funded indexed universal life insurance contracts
because they accumulate your money tax free.
You can access your money tax free, but at the end
of the day, when you die, anything left in there blossomed
and transfers income tax free
which reimburses you many fold
for the taxes you pay in most circumstances.
And so that's called a strategic rollout.
So in a lot of these educational episodes
on this channel I give actual stories and examples.
I'll give you highlights of about five right now.
Years ago I met with two school teachers
both a husband and wife.
When they came to me they had $250,000 accumulated
in their 401k's and their 403b's and tax sheltered annuities
and their advisor 'cause they were 59 1/2
and they didn't have to pay a 10% penalty
if they started accessing money but their advisor says, well
if you don't need the money, keep deferring.
And so I said, okay, let's look at doing that.
If you deferred until age 70 1/2
which is when they had to start taking RMDs back then
that 250,000 at a 7.2% rate
of return would've likely doubled to 500,000.
And then we took RMDs and they were shocked.
Out to the husband and the wife's life expectancies
they were gonna pay at least a quarter
of a million dollars in taxes
and that's assuming tax rates never went up.
I said, do you wanna pay a quarter of a million of taxes?
And they go, wow.
Well yeah, I said so do a strategic rollout.
What, we have to pay tax now?
In a nutshell, we did a strategic rollout of 60,000 a year.
Now they had to report that
on their 1040 tax return, they didn't use the money
but we only paid 12,500 a year in tax for five years.
Five times five times 12,500.
They paid 60,000 in tax, but that's better than 250,000.
But then I was able to resurrect deductions
on two of their rental properties and
that created or resurrected deductions that offset the tax
on that 60,000 a year of withdrawals.
And so we were able to get out a quarter of a million
out of those 403b's and 401k's with no tax consequence.
Well, we were able to double that over 500,000
but that 500,000 was able to generate 50,000 a year
of tax free income.
We way more than doubled their retirement income
and they were far better off.
They were so glad
that they came in and performed a strategic rollout.
Now we have done this many, many times.
The second example is a real estate landlord
that came to me with 600,000.
His advisor said, oh, just take out the 4% rule
at age 70 1/2, which would've been a measly 24,000 a year
in a 33% tax bracket.
He paid 8,000 in tax.
He was only netting 16,000 a year to buy gas
and groceries, that's pathetic.
In fact, it was unacceptable to me.
Long story short, we did a strategic rollout.
We took out 150,000 a year over five years
'cause we grew his 600,000 to 750,000.
So we pulled out 750,000 paid tax of a third 250.
We netted 500, but that 500,000 began
to generate 50,000 a year of tax free income.
How much better is 50,000 than the net of 16,000?
It was more than triple.
The real truth is we resurrected deductions
for him on his rental properties
and we actually got out 750,000 totally tax free.
He actually was earning 75,000 a year
of tax free income at the end of five years.
And he was thrilled to do a strategic rollout.
We had in our third story
a couple, husband and wife were both physicians.
They came to us and had saved 4.6 million in IRAs of 401ks.
Their advisor said, oh, just take out RMDs.
Well, I calculated and they would've paid 2.6 million
of unnecessary tax throughout their life expectancies.
And their advisor said, well, they can afford it.
I said, well, let's ask them.
I said, I can't save you 2.6 million.
You've really painted yourself into a corner here,
a tax trap, but I could free up 1.2 million.
I could save you 1.2 million.
Would you like to do that?
And they said, absolutely.
We did that.
That extra 1.2 million that it would've gone down the drain
in an unnecessary tax
in an IUL contract has been generating 100,000 a year
of tax-free cash flow for them, their kids, their grandkids.
They are thrilled that we saved them 1.2 million
of unnecessary tax.
We did that in the fourth story with a couple
in California that came to us with 2.6 million.
And that 2.6 million they thought would generate 160,000
a year at a 6% payout of taxable income
out of IRAs, of 401k's.
They had another 40,000 coming
from a school teacher pension.
So they thought they were
in pretty good shape with 200,000 of income.
And I said, well, yeah, but it's all showing
up on the front page of your 1040 tax return.
They said, there's another way?
And I said, absolutely.
We performed a strategic rollout over five years.
We got 60%, 120,000 of that 200,000
off of their 1040 tax return.
We saved them 40,000 a year in tax the rest of their lives.
We saved them over $1,000,000
in taxes the rest of their life.
But we basically took their 200,000
of income we actually increased it, but now only 80,000
of it shows up on their 1040 tax return.
The IRS knows they're receiving the other
but they know it's tax free.
We do this all the time.
The last example is a couple in California that came
to us with 6 million in IRAs or 401k's.
They wanted to convert to totally tax free.
They were fed up.
They just wanted to bite the bullet
and pay the taxes now.
Now the IRS was thrilled.
We did a strategic rollout
and they paid 2 million out of that 6 million
in tax in five years.
They netted 4 million after tax.
We doubled that 4,000,000 in 7 1/2 years to 8 million.
They now have 8 million generating
between 600,000 to 800,000 a year of tax free income.
They don't even need that much.
They don't even have to file a tax return.
The IRS knows they're receiving that money
but they know it's tax free.
They are thrilled that they came
to us to do a strategic rollout.
Folks, check out to see
if a strategic rollout is right for you.
I would recommend that you read some stories
in this book and see actual examples.
This is my latest bestselling book that's flying
off of our warehouse shelves.
It's a 300 page book.
This side is 200 pages that has all the charts
and graphs and we dedicate many
of those pages to illustrating strategic rollouts.
If you learn more by stories
or examples you flip it over to this side.
This has 12 chapters.
One of those chapters is dedicated
to five stories of people we did strategic rollouts for.
So if you like to learn by stories or by actual charts
and graphs, right brain, left brain, this book is for you.
Here's how you claim your free copy.
Simply go to laser fund LASERFund.com.
What is a laser fund?
It's a property structured indexed
universal life insurance contract.
Structured the way to accomplish the goals
that I've been talking about here for strategic rollouts.
And so go to laser funder, click
on the link below and you contribute a nominal amount
towards the shipping and handling.
I'll cover the rest of that cost and I'll pay for the book.
Yeah, you can go to Amazon
and pay 20 bucks and if you do, thank you.
But I'll gift you a copy free.
And 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 options.
There's even an 18 hour masterclass
in there you can invest in.
There's educational webinars
that are free we teach on a regular basis.
But you can schedule an appointment
with an IUL specialist that I mentor and I oversee.
They can structure some illustrations for you
at no cost, no obligation to see how it's done correctly
to see if an IUL policy is right for you
because I don't want you to be left in the dust.
I don't want you to go
through the year 2023 and realize that you missed the boat.
You could have begin to convert your money
to tax free strategies.
(upbeat music)