How To Invest One Million Dollars For Retirement

1 million dollars can pay out $100,000 a year in tax-free income. In this educational episode, I'm going to address the question that I've been asked numerous times. How to invest 1 million dollars for retirement? Well, it assumes you have a million bucks and now you want to know what is the best place to put that money so you do not outlive your retirement. So, get ready. I'm going to show you absolutely the best place to invest a million dollars if it were me. And I've advised thousands of people on how to generate 10% payouts on a million bucks. That's 100 grand a year of tax-free income. So, I'm Doug Andrew. I'm here in my radio studio. I produce a weekly radio show. I've been doing this for 12 years. And in a 1-hour radio show that's divided up into 4 segments, I usually answer a specific question that people have asked anywhere from 30 to 300 or more times a month for the last several months. This question here has been asked thousands of times in my 46-year career of being a financial strategist. So, let me tell you a little story. And actually, I could tell you dozens like this one. But I had an individual come to me that had a million-dollar settlement. They got a million bucks from... I can't even remember where the settlement came from a lawsuit or a car accident or whatever. And they said, Doug, I have a million dollars. Now, I want to make absolutely sure that I do not lose this million. Well, I knew immediately I would never recommend you put that in the market. Because I've seen people with a million dollars one day and a year later, they only had 600,000 to show for it. That happened in 2008. So, no. You don't want to put them in the market. See, money in the market is designed to keep it there. When you ask Wall Street, when is the best time to take money out of the market, they will always say, never. When the market dives, they say, hang in there. Hang in there. The market always comes back. It was never designed to provide safe growth and tax-free income. Most of the people that came to me wanted to preserve their principle. They wanted to have safety of that principle. So, this gentleman, I said, well, I would recommend wherever we put this, it passes the LASER test. He goes, what's the LASER test? I go, well, it's an acronym that stands for liquid asset safely earning returns. But LASER is the order of priority on prudent investing. Wherever I recommend people put money, serious cash that they don't want to jeopardize like you just told me, you want to make sure it's liquid, number 1. See, people get these in reverse order. Liquidity is number 1. The ability to access the money when you need it with an electronic funds transfer phone call. He goes, that sounds good to me. Number 2, safety. He said, safety of the institution. I said, yeah. I put my money in the institutions that have weathered the great depression with flying colors. The last industry that would collapse if the American dollar became worthless. What industry is that? He asked. I said, well, the multi-trillion dollar insurance industry is the backbone of America, the backbone of the world. It's where governments go to for help and money when they need it, when they're hard up. It's where banks and credit unions take the money we deposit into them and they take 30 to 40% of their tier 1 assets for liquidity and safety. And they put that money there into insurance companies. It's called BOLI, bank-owned life insurance. It's an acronym, B-O-L-I. And so, they borrow our money at 1 or 2% and they turn around and increase the safety by 6 notches higher because most of these insurance companies are rated triple A that I put my money into. Most banks are only rated triple B. That's 6 notches lower in safety. They increase the safety on the money you gave them and then they increase the rate of return. They're paying you 1 or 2% and they're earning 5 or 6% in the insurance company because they don't even link it to an index. They can link to an index and earn 8, 9 or 10% if they want. So, I'm saying, why don't you do what banks do, bypass the middleman with this and so you have liquidity number 1, safety number 2. Then I told him, number 3, you want to earn predictable rates of return. Not pie in the sky rates of return. You don't need 15, 20, 30%. There will be some years you might earn that. But you want to not lose when the market goes down. You may not make much during a recession or a down year. But you will make money when the market goes up. And would an average return, sir, of 10% net sound good? That sounds too good to be true. And I said, well, it's not. I have actually averaged 10.07% net after all costs and fees of a max-funded insurance contract for over 25 years. He goes, wow. This sounds too good to be true. Well, I did an illustration. Long story short, we took the million dollars. Now, there were some other assets. He goes, can I put this money there too? But let's just isolate the million. That million dollars strategically funded an insurance contract, a laser fund in 4 years and 1 day in compliance with IRS tax citations, TEFRA, DEFRA, and TAMRA. I don't have time in this episode to explain those. You can search those on my channel and you can watch videos that explain those tax citations. When you comply with those tax citations under three sections of the Internal Revenue Code, Section 72E, 7702, and 101A, that million dollars accumulates tax-free the rest of his life. When he takes income, anytime, it's tax-free. And when he dies, that million blossoms to about $2.5 billion totally tax-free. No other vehicle does that. He goes, wait a minute. You mean my million? If I don't touch it, will double to $2 million in about 7 to 7.5 years? I go, yep. What if I leave it another 7.5? Will it grow by another million? I go, no. It will double from $2 million to $4 million. It doubles. $4 million will double to $8 million. It keeps doubling. It just doesn't grow by another million every 7.2 years. It doubles. $1 million to $2 million to $4 million to $8 million to $16 million. Many of my clients have done that. He goes, whoa, that's incredible. What if I need income? Well, if you need income when it only has a million in it, it can generate 10%. Take 10% of that, it's $100,000 a year. Without depleting principal, if you're earning 10 and you only pull out 10, you're not depleting the principal. Can I start it when there's $2 million in there? Sure. Well, how much would that be? 10% of $2 million is what? He goes, $200,000? Yeah. You doubled your income. When it's worth $4 million, it can generate $400,000 a year of tax-free income. He goes, this is incredible. What else can I put in this? I have some other money. But see, it all started with what am I going to do with this lump sum? My banker tells me to put it in the bank where it's safe. When I told him, guess where his bank is putting the money? He goes, how come they didn't tell me that? The bank said, well, here we don't charge fees. Oh, yes, they do. They're hidden. They don't call them fees. They take your money and they earn 5, 6, 7, 8%. What does it cost you to put your money in the bank? 7% on a million is costing you 70 grand. They don't charge you 70,000. They just pay you a nominal interest rate of 1% which is costing you 70 or 80,000 of what you otherwise could earn in a laser fund. In an institution ranked 6 notches higher in safety where your bank put some of your money if you choose to put it there. He goes, how come nobody ever told me this before? Well, so, he was grateful. I hope this is giving you some insights into opportunities that you didn't know existed before. So, you can extrapolate from my example whether you have 2 million, 10 million, a half a million, or $100,000. You can take a lump sum and grandfather yourself to accumulate from that point forward your money tax-free. Access the money tax-free. Be able to take a 10% payout and not deplete your nest egg. I'm going to share with you how you can learn more about this. So, if what I've been sharing intrigues you, you need a copy of my most recent best-selling book. But you don't need to buy it. It retails for 20 bucks on Amazon. It's called The Laser Fund. And this is how to diversify and create the foundation for a tax-free retirement. It's a 300-page book. 200 pages are full of charts and graphs and explanations. If you learn more by stories, you flip the book over and you read this side. This is 12 chapters containing 62 actual client stories. I recommend you use your right brain and left brain and learn by the stories as well as the examples in here. And so, I will pay for the book. I will send one out to you as a gift. You can claim a free copy by going to laserfund.com. L-A-S-E-R fund.com. And you pay $5.95 shipping and handling. I'll pay for the book. You pay for the shipping. There's options there to get the audio version also and also video courses if this intrigues you. But many people who get this book send me thank you notes. And they say, Doug, you just made me an extra million bucks. You just empowered me to have 100,000 a year of tax-free income compared to the bank or my advisor only showing 4% returns instead of 10%. Pretty significant. Wouldn't you agree?