Get your money out of the market now if you don't want to lose 30 to 40 percent of your hard-earned
money that you have invested. In this episode, I'm going to address Biden's tax proposals that reveal
ignorance of basic economics. Get ready, I'm going to enlighten you.
So, my name's Doug Andrew and I've been involved in economics, accounting, training a lot of cpas
and tax attorneys. I've been a financial strategist, tax minimization specialist
for 4 and a half decades and I'm very grateful and blessed in my life. I've written 11 books.
My 12th one is about to be released and many of these books help people optimize their financial
assets. Well, there's a lot of economic principles that I learned back in college
in economic 101 that I'm shocked a lot of politicians just don't seem to understand. So,
if we look at this simplistic approach to a lot of the policies that government seems to pass, it's
like, "Hello? Don't you understand basic supply and demand?" Let's just get down to the bare bones
basics to understand what is happening to our great country. And sometimes quick fixes or
solutions by simply passing uh stimulus packages that cost 2 trillion on top of the last trillion.
Yeah, it might help out the economy a little bit but where's the money going to come from? The
government in the year 2019 - '20, because of the pandemic covid-19, they ended up spending twice as
much as the irs collects in revenue double. Now, come on. If couples did that in America, wage
earners, if you with your spouse made $100,000 a year but you constantly spent 200,000 or even
300,000 a year, how long could you get away with doing that before you would be totally bankrupt?
Yeah! Well, that's what we are on the verge of in this country. I am extremely concerned and scared.
So, when we talk about basics of supply and demand, if you are trying to increase the
money supply... Now, you can do that by raising taxes. But if you raise taxes too fast too high,
it actually works against you instead of for you. It causes businesses to go under.
They have to let employees go to pay higher taxes. When people have to pay higher taxes
they have to go out and work two jobs or whatever. Or if there is no employment opportunities because
employers are having to lay people off, we go into recession. And now the government
does not have the wherewithal to get the tax revenue because the economy is in a recession.
Unemployment is up and this is what we're on the verge of because so many of these policies
are very myopic. They're very short-sighted. And so, we have to look at, "Okay, basic
supply and demand." If you don't have enough money and you increase the supply by printing money,
what does that do? It causes inflation. The value of the dollar goes down.
The cost of goods and services goes up and this is what causes all kinds of havoc in the economy when
we play around with supply and demand just by printing more money. In fact, I would challenge
you to show me any country ever in the history of the world that solved their deficit spending
by printing money wherever turned out good. It has never turned out good. And unfortunately,
that's where we're headed in this country. We're headed towards higher taxes and inflation that
will be double-digit and it's going to erode away a lot of people's hard-earned money and
their nest eggs and cause people to outlive their money and become more dependent on Government.
My heavens, I thought we declared independence. And we're actually fostering a more and more
dependent society. So, when we see the stimulus spending here in the 4 to 5 trillion dollar range.
And a lot of times people don't even understand how much money that is. I mean, a trillion bucks
would be one dollar bills lined up from here to the moon and back 200 times. And they've been
spending twice what the government brings in in revenue. Where's the money going to come from?
And so, the basic economics is you cannot keep spending twice as much
as what you bring in in revenue. You can't keep doing that. You're going to go bankrupt.
But somehow they think it's all going to work out in the end or else they'll print money or
try to raise taxes, or they'll tax the rich. Do the math. If they tax the rich at 90 and
95 percent, that's what happened during world war II. They taxed the rich on a federal level at 94%.
There's not enough wealthy people that would even cover all of these initiatives. And then they want
to do medicare for all or free college tuition. Those are estimated to cost a hundred trillion
each in the next 10 years. If you just divided that equally over 10 years, that's 10 trillion
a year for each of those initiatives. That's twice as much as the IRS collects in taxes in an entire
year. And we already have a huge deficit because of the stimulus packages that have been passed.
Now, I'm not a doomsdayer but I am a realist. So, what do we need to do? What is going to happen?
I predict businesses are going to be forced to cut jobs. They're going to have to tighten their
belts. They're going to have to take and lay off several people that causes unemployment. That's a
drain on the government. They will have to raise the price of goods and services. And you have
other initiatives like raising the minimum wage to 15 an hour. Many employers have already planned on
letting go or laying off up to 30 percent of their workforce. And they are changing to automation.
These are not good signs. So, where is all this going to take us? What can you do to protect
yourself so that you don't lose 30 to 40 percent? Now, why would you lose that? Because all of this
comes back to affect the market. When we see these things happen, the market starts to go volatile.
And we will see again a 30 to 40 percent drop in the market. It's not a matter of if, it's when.
And so, that's what happened in 2001 to 2003. And people say, "Well, that was a terrorist attack."
Well, it could happen like that again but this is going to be just as dramatic because of all
of this irresponsible government spending and the printing of money. 2008, the mortgage meltdown.
Similar type of a situation. So, we will see another dip in the economy, a correction and
it could be 30%. I mean, it happened in just one month during the pandemic in the year 2020. In
march, I think it was that the market dropped over 30% in one month. We're going to see that and it's
not just going to be one month. It's going to take sometimes 2 or 3 or 4 years to come back. Like in
2008, it wasn't until 2012 that people finally made back the money they lost in one single year
in 2008. Now, I protected a lot of people in 2001 and 2003 and also 2008. They were cheering when
the economy went down because they weren't losing. They may not have made very much in 2008 but they
didn't lose. And as Will Rogers once said, "People get more concerned about the return of their money
instead of the return on their money when things are bad". In fact, the first 90 days of 2009,
thousands of our clients locked in gains of 16 tax-free the first 90 days of 2009 after
not losing a dime. At the end of that 12-year period, 2000 to 2012 when most Americans were
barely back to break even, many of our clients had doubled and tripled their money totally tax-free.
How? Using max-funded indexed universal life insurance contracts with indexing.
Indexing allows you to make money when the market is going up but not lose when it goes down because
your money is not invested in the market. It's simply linked to the market. Am I arousing
curiosity? Let me show you how you can learn more. So, before I share with you what you can do to
protect yourself and be ready, I would recommend that you share this video. You click like.
Subscribe to this channel 3-Dimensional Wealth. I post an in-depth answer to a financial question
almost on a daily basis. I'm passionate about educating you on how to have a brighter future.
So, I started this episode talking about the Biden tax proposals and how it will cause these kinds of
topsy-turvy volatile markets. Let's use an example that happened back in 2012 to 2016. It was the
second term for President Obama. Now, I remember speaking in Wisconsin and in Chicago, Illinois.
Now in Chicago, when things were tight, they said, "You know what? We have to tighten our belts but
we don't want to cut jobs. We want to hire more people, government workers and we need to raise
taxes and create more regulations." So, guess what happened in Illinois? I was in a ballroom in
a hotel and there were over a thousand business owners. And sadly, they are all going bye-bye.
We are moving our businesses out of Illinois. Where to? The majority of them were moving to
Wisconsin. Wisconsin took the opposite approach. The governor was Scott Walker at the time and he
said, "We're in business in Wisconsin. We're going to deregulate. We're in business."
They turned around a deficit in six months by deregulating --lowering taxes increasing the
revenue that was being taxed and they got out of that deficit in 6 months.
Businesses move from Illinois to Wisconsin. What are we seeing right now? Unfortunately,
there are a lot of people and businesses leaving the great state of California.
I love California. But they're leaving to states like Texas. Now, what's going to happen?
California is saying, "Okay, we're going to have to raise taxes higher and higher."
That's not going to help. That's going to hurt. Texas is benefiting because they chose
the opposite approach. What's this going to cause? The markets will be very volatile.
So, get your money out of the market. Move it over into something that is immune from taxes because
it's tax-free. That when inflation hits, it will help you instead of hinder you. But you're not
going to be suffering from market volatility by using a strategy called indexing.
I explain how to make yourself immune from taxes inflation and market volatility in this
book called The LASER Fund. Here's how you can claim your free copy because I want to gift you
this book. It retails on amazon for 20 bucks but I'll pay for the book. If you go to laser fund...
L-a-s-e-r, it stands for liquid asset safely earning returns. You go to laserfund.com or 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 buy the book. It's 2 books in 1. This one is 200 pages,
14 chapters, all kinds of charts and graphs. You flip it over, this one is 100 pages, 12 chapters
with 62 actual stories of clients who have protected their hard-earned money from the
negative impact of taxes, inflation, and market volatility. And if you want to use both the right
brain and left brain, you can read both books, okay? But claim your free copy. Begin to learn
and check out how you can listen and learn with the audio version. But I have an 18-hour master
class where I do a deep dive with my two sons who were co-authors with me on that book. And
you'll be blown away with opportunities that you never even knew existed before.