How To Earn An Extra Million Dollars For Retirement

How To Earn An Extra Million Dollars For Retirement


In this episode, you are going to learn
how to earn an extra million dollars for retirement. How does that sound?
You think this is fluff? Nope, this is the real deal. There are actually 8
primary strategies that I teach in my educational events. I’m only going to
show you 4 of them because those are usually worth at least a quarter of a
million dollars for each of those. You add up 4 and that’s a million bucks.
Would you like an extra million dollars? Watch. I’m Doug Andrew and I’ve been
doing what I do best at helping people understand complex things in a simple
manner. Especially with optimizing financial assets and minimizing
unnecessary taxes for 45 years. Why do I do this? At this stage in my life, I don’t
reveal my age. But I am at level 67. And so I’ve been around the
block. And I let my professional licenses automatically expire clear back at the
end of 2005 to become a consumer advocate. And that’s what these episodes
are all about to empower you. So, this isn’t about me. And this is about you and
your future and I want you to understand in this episode how you can have an
extra million bucks to not outlive your money. Anybody I ask that “Would you like
an extra million?” They go, “I’d like just 1 million to start out with.” Well, this is a
way to get an extra million. So, I hold events and many times, I will tell people
if you come to a 4-hour workshop which I’ve taught thousands of those. I
will share with you 8 concepts. If you just took half of them, 4 of the
8, you should if you’re an average American make an extra quarter of a
million dollars or save a quarter of a million dollars with each of those ideas.
So, pick 4 and that’s a million bucks. Now, I don’t have time in this episode to
do all of them but I’m going to choose the ones that I’ve highlighted
here in yellow. So, we’re going to talk about how to increase your rate of
return over 10 years and that will generate an extra $250,000. And I’m
usually talking to people who have been doing things wrong for many years. And
now they’re approaching retirement they’re aged 50 or 55. And I showed them
how to come up with an extra quarter of a million in just 10 years. Tax savings
by converting to tax-free. Because most people that I met have money in tax
deferred IRAs and 401Ks. And so, I help them with a strategic rollout and we end
up usually making them an extra quarter of a million. There are some people we’ve
made an extra 1.2 million or more. But this is the average. The next concept
that blows people away is how to manage your real estate equity and how people
get out of debt the smartest way. And they’re shocked when I say, “It’s not any
way shape or form sending extra principle payments to the mortgage
company.” When I get through, it actually ends up being a quarter of a million or
a half million or more that we created by not doing what they were doing –trying
to get out of debt and pay off their house or what-have-you. And that last
indexed universal life, my favorite vehicle usually saves people about a
quarter of a million dollars versus the fee-based fiduciaries that most people
have their money in with asset managers and so forth. So, those are the 4 I’m
going to zero in on. And we’ll just take one at a time real quick here and I want to
give you some insights. And then if you’re interested, you can learn more in
depth in one of my books and I want to give you one of these books absolutely
free. You just pay a nominal shipping and handling charge and I’ll fire that out
to you. But let me talk about the what and the why the how you can learn more
in depth by reading. So, let’s start out with increasing your rate of return over
where most people have their money. Most people that would come to me had their
mone,y 80-90 percent of it into vehicles like IRAs and 401k is usually in the
market. Because that’s what most businesses have for their employees or
what have you. But dowel bar is the organization that studies investor
behavior. And they say, “You know what? If people would just buy and hold
old and not get emotional about when the market goes to its gyrations, most people
would average about 9.14%.” But they said, “That’s not what
happens in the real world.” The actual investor return is only 3.49%. Because people, they get nervous when the market goes down 30, 35, 40 percent they just up. And they take their money out of the
market they put it in the bank earning a measly 1%. And then they wait too long to
get back in the market again. And so instead of averaging 9, they’re only
averaging 3.49. And that’s what precipitated that what is
called the 4% rule in the financial services industry which I
cover in another episode. If you’re only averaging 3 and a half which is the
average in America, you pull out 4%. You’re going to slowly deplete your
nest egg but not before your L.E. Your life expectancy. But that’s pretty
pathetic to only average 3 and a half and be allowed to take 4%.
A million dollars would only give you 40,000 of income and then you
have to pay tax on that and fees on that. That’s not a good way to go. My favorite
vehicle… I call in my book the Laser Fund. In other episodes, I show that my
predictable rates of return have been averaging between 8 to 10 percent.
So, 8.2% is what I’ve earned for more than 45 years. The last
25 years to spend 10.07. If the industry average is 4 and it’s
subject to tax, you know, you’re really not netting 4. But you can reposition
your money in a vehicle that’s safer earning 8. How much more is 8 and 4? That’s a 100% more. A million
dollar nest egg we generate 80,000 a year of tax-free income
versus an IRA 401k you only are allowed to pull out 4%. Or out you have
to sign a waiver that you won’t sue the advisor for outliving your money. And you
pull out forty thousand and you pay tax on it and fees and you might only net 20.
So, this is huge. That adds up so fast to an extra quarter of a million dollars
based on most people’s life expectancy. Let’s go to the next one. Tax day means
converting to tax-free. Most people who would come to me we’re way too top-heavy
in yet to be taxed IRAs and 401ks because they thought that you were going
to be in a lower tax bracket. And that has not been
true for over 25 years. And so we would do a strategic rollout. That’s not a rollover. Rollover is going from 401K into an IRA. You just continuing to defer
thinking you’re saving tax. No, You’re not. We have software that shows
you’ll pay through the nose. It’ll actually cost you twice as much if you
keep deferring and stringing it out thinking you’re saving tax. Now, you get
the money out and you get the taxes over and done with in today’s lower rates. But
you reposition that after-tax money into tax-free vehicles. You don’t have to take
the income out yet. But you don’t wait till you’re 70 and a half and take RMDs.
That’s the worst advice I’ve ever heard. So, when people convert to tax-free
vehicles like the Laser Fund, they not only increase their rate of return but
they go from tax deferred or taxable investments to tax-free. I only have to
earn 8% to equal what I would have to earn 12%
in a tax deferred IRA. And then have to pull out the money and pay tax to net 8.
I only have to earn a to net 8. In a mutual fund I’d have to earn 12 and
two net 8 after-tax. So, that comes up with an extra quarter of a million
dollars pretty quick just in tax savings. That we accomplished and increases
people’s net spendable income by double. How about real estate equity? Let me
share with you a little concept about this. I written complete multiple
chapters on this topic. Let me explain what this can do to empower you. Most
people have some of their money or their wealth accumulating in their real estate.
Now, if you’re one that just has a home that you’re buying that you own or maybe
you might have rental income properties. These are called non owner-occupied
rental income real estate property. OIt doesn’t matter. A lot of people’s wealth
or the money they’ve accumulated in their life happens to be in some form of
real estate. Some more than others. The problem is people usually think, “Okay.
I’m going to put money into my house. I’m going to put it into these apartment
complexes. And I’m going to pay them off as fast as possible with the rental income.
Or I’m going to pay off my house. Now, I don’t have to worry about that.
And I can get the rental income and live off of that.” Well, I have found many
people when they retire, they are tired of being landlords if they have rental
properties. They’re sick and tired of taking out trash evicting
tenants and fixing toilets and so forth. Now, they’re stuck with either hiring a
property manager or selling it and they have to pay a capital gain tax and so
forth. Many, many times we’ll help people sort of reposition that and do 1031
tax-free exchanges into other properties where they don’t have to manage. We
sometimes increase their rate of return by double, triple even quadruple over
where they own those rentals and let’s say in the San Francisco Bay Area where
the rent multiplier is pathetic. It’s only like 2 and a half percent on the
value of the property. Whereas places like Memphis, Tennessee you usually get
1% of your money. Like 12% a year. So, we’ve had many people
double, triple, quadruple their cash flow. But instead of trying to pay it off this,
is what I do. Now, you don’t have to do what I do. But see instead of sending
extra principal payments to the mortgage company, I always take that rental income
and I put it over into my Laser Fund. And I’ll give you a book absolutely free to
learn what the Laser Fund is. But it’s my favorite vehicle for accumulating my
money tax-free. So, I take that money I’d be giving to the mortgage company and I
put it over my Laser Fund and it’s compounding tax-free. Why do I do that
instead of paying down my mortgage? Hello, this is what banks do. Banks make
millions, billions by borrowing money at a lower rate and making a higher rate. My
mortgage, if I pay 4 and a half percent interest on my mortgage is tax
deductible. And a 33% tax bracket it’s not costing me 4 and
a half. It’s only costing me 3. So, let’s say I have a million-dollar
mortgage. My million-dollar mortgage is 45,000 of interest a year.
“Oh! that’s bad.” No, it isn’t. Mortgage interest is my friend, not my foe. I’m
paying 45,000 but that’s deductible on my tax return in a 33-percent bracket, I get to wipe out 45,000 with that deduction.
And so, I’m able to save one-third of that is
how it equates. And so, it’s not costing me 45. It’s only costing me 30,000. I
saved 15,000 in tax. So, the net cost of the mortgage is only 3% if it’s a gross
of 4 and a half. I’ve been making 9 or 10. Let’s say 9. How much more is
9% over here compounding than 3%?
Don’t say 6. It’s 300% more. Would you hire an employee for
30,000 that made you an extra 90,000? So, by compounding my money
over here, I’m out of debt anytime I want to be with an electronic funds transfer
phone call. I can take money out of my Laser Fund, pay off the mortgage but by
not physically paying it off. This compounds over here. And pretty soon, I’m
earning nine percent on a bigger balance that I’m paying 4 and a half percent
tax deductible interest on. I prove in my books. This adds up to millions over a 30
or 40-year period. But over a 10-year period, no-brainer. It’s an extra quarter
of a million bucks. I would encourage you read some of my books to see the math
behind that if I went too quick. But the final is when I use my favorite vehicle,
the Laser Fund is what I call it. It’s a maximum-funded tax advantage insurance
contract. I like to use Universal Life, indexed universal life. And there’s only
a handful of companies that I put my own money into. I have criteria in this book
about how I choose the company. It is only a one-time fee. See, if I put in $500,000 to a Laser Fund, that would be a one-time fee maybe of
15-20 thousand dollars. It’s done. Everything for that point forward, I
just grow tax-free. There is not an annual fee charged that I have to pay an
advisor. So, let’s use the comparison of when you buy a house. What if you went to
a realtor and said, “I want to buy a house” and the realtor says, “Well, I have 2 choices. I’ll charge you 6% one time so on a half million dollar house.”
What’s that? 30,000. “I’ll charge you 30,000 one time and we’re
done. Or you can pay me 1% on the
value of that house every year for as long as you’re in that house. Which would
you choose?” Most people when they buy a house they’d say, “Oh, I just assumed pay
6% one time.” But most financial planners, asset managers charge 1% every
year. If you did that, you would pay nearly 1 million dollars in fees to a
fiduciary to manage that. when you finally have a million bucks, they’re
charging you for that, that’s 10 grand. It just keeps going up. Why would
you want to do that? So, using the Laser Fund, most people say but least a quarter
of a million dollars over 10 years. Over 30 years, they save about a million
dollars over a fiduciary fee-based financial planner. So, those 4 areas
are the best ways that I’ve found to accumulate an extra million bucks. And
would you like an extra million?=In the Laser Fund, you’ll learn how that can
generate 100,000 a year of tax-free cash flow into perpetuity
without depleting principle. So, if you would like a copy of this book, I want to
empower you. This is something I do in my foundation. This is free to you. If 300 pages and if you go to Laser Fund.com, you just cover a nominal
shipping and handling fee of about $5.95. And I will send out a copy of this
absolutely free. It’s actually 2 books in one. The first section is comprised of
about 200 pages, 14 chapters with charts graphs and explanations of how
this works. You flip it over this way and this book is comprised of about 100 pages. You read it this direction and it contains 12 chapters with 62
actual clients stories. And so, let me empower you with that and you have
options if you would like the audio version or the digital version. You can
do upgrades from the physical copy. But I want to give this to you so that you can
learn and take ownership of your brighter future.

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