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The Truth About Doug Andrew and His Retirement Philosophy
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- เผยแพร่เมื่อ 18 ส.ค. 2024
- I think Doug Andrew is a pioneer in the financial services industry and has brought to light many opportunities with life insurance retirement plans. His recent advice on performing a strategic roll-out instead of a roll-over and pull money out of the stock market is contrary to what I believe regarding the benefits having some money in the stock market can have on your retirement.
0:00 Intro
0:33 Doug Andrew Retirement Philosophy
2:05 Market Risk
2:45 Stock Market Investing
4:00 Rolling Stock Market Money into a Laser Fund
5:07 Streams of Tax-Free Income
5:46 Roth IRA
6:07 Roth Conversion
6:33 Tax-Free Retirement Strategy
7:05 IUL Benefits
9:20 Video Summary
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Doug does not advocate putting all of you money in the IUL. Also, Don't forget the a fully funded IUL in an A+ rated company will do just as well as a Roth IRA... However, the money in NEVER taxed since it is paid out as a Death Benefit, does not count toward Inheritance Tax and many other HUGE benefits you left out!!! Further, there is no Limit as to how much you can contribute if funded correctly because you can increase the death benefit to make sure it does not become a MEC!
Great mentions! Also left out 0% floor the IUL has when the market (including most IRAs/401k’s) is tanking and suffering severe losses! Moreover, Doug is stating that the IUL has more UTILITY than just retirement planning! He sells it as a complementary product, because it is!
Each product will depend on each person. Not everyone has the health to enter an IUL and not everyone has an employer to provide them with a 401k.
@@jorgemorales3328 Then invest in your own roth Ira and get a policy on grand kid,niece/nephew.Doing nothing will keep us were we are at.
I've wondered if you would ever address Doug Andrew in any of your videos. You did a good job navigating that minefield of differentiating yourself while staying respectful.
Thanks for being a measured voice for IULs!
Thanks for your comment. I tried to keep it balanced and respectful.
I agree with your statement that IUL's should be seen as another way to save for retirement when structured properly. They should be seen as another vehicle to put your money in and see it grow.
Yes! In concert with all the other other available tax-free alternatives.
Am 58 retiring next year but the thought of retirement gives me weakness. My apologies to everyone who have retired and filing social security during this time after putting in all those years of work just to lose everything to a problem you never imagined to happen. It’s so difficult for people who are retired and have no savings or loved ones to fall back on.
True, It has never been easier to understand how to build your money after retirement than it is right now with the inflation, when you may study and experience a completely variegated market passively by employing a successful portfolio-advisor. The impacts of the U.S. dollar's gain or fall on investments, in my opinion, are complex.
Even if you’re not skilled, it is still possible to hire one. I was a project manager and my personal portfolio of approximately $850k of my retirement pension took a big hit in April due to the crash. I quickly got in touch with a financial-planner that devised a defensive strategy to protect my funds and make profit from my portfolio this red season. I’ve made over $250k since then.
That's fascinating. How can I contact your Asset-coach as my portfolio is dwindling?
My Financial adviser is ‘’'Natalie Lynn Fisk ’’ she’s highly qualified and experienced in the financial market. She has extensive knowledge of portfolio diversity and is considered an expert in the field. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market
Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.
I am blessed with a good pension.I also have 457b,Roth IRA,PCRA,Regular taxable account,and IUL.I am not retired but use my IUL to invest in deals I find.Bought a large amount of physical silver at 17 a ounce.WIll be selling soon and repay my loan from IUL back.I belive in being diversfied .I still have ten years before retiring.I have paid off all debt including home.So just building more wealth until then.Happy investing/stacking.
Bro ..where is the book..lol..show me the way..
@@shakazaiyah No book just common sense and work.I dont sell insurance,not a Finacial planner,just a normal guy.If I can do it you can.Stop being a debt slave is the first step.The only debt you should have is a home.I am 53 years old.All my coworkes buy 100k vehicles that look pretty.I have only owned three vehicles my whole life.Instead of car payments I take that money and invest.I am not a fan of starting businesses or real estate.I love stocks and precious metals.So figure out what you love not what you will earn and study that.Happy investing/stacking.
This is a great topic that I believe can be expanded on with real examples, illustrations, and numbers. Granted this would take a much longer video, but worth it. Thanks Dave
You’re welcome.
They are no frauds and lying bastards
FYI - Roth 401(K) --- the company match is not taxed. I only learned this recently. If you have $100K in your Roth 401, all the employer contributions and growth are actually considered to be in standard 401 as pre-tax contributions.
As of Secure Act 2..0 you can now direct matches to the after-tax portion.
Thanks for the video post. I did watch Doug Andrew's presentation about Dave Ramsey's position on IUL's. The video was insightful in the process of learning more about IUL's. We are working with a financial advisor who subscribes to your philosophy. We are also reading the three books you authored which she also provided. Very helpful. Thank you.
You’re welcome!
This was a well thought out video with great knowledge. Thanks, you’ve earned yourself a new subscriber 🙏🏾
Thanks Justin!
I like both of you a great deal. You mentioned surrender charges for the IUL, but that only applies if you withdraw money from the IUL which is a terrible way to access it. It’s much better to pull out money from an IUL using indexed/participating or wash loans and the indexed/participating loans are usually available 30 days after you put the money in. With a Roth you are restricted if you’re under 59.5 years old.
Are you saying you can take the loan on the cash value and not the surrender value? If so, I’m not aware of any insurance companies that allow this unless you pay to waive the surrender charge.
@@DavidMcKnight No, I’m not saying that. With a properly designed IUL that utilizes the Supplemental Term Rider to significantly reduce the surrender charges and commissions while also significantly increasing the MEC limits I have access to over 70% of my premium dollars from day 1. The awesome agent I use specializes in these designs. The wash loans usually don’t become truly wash until after the 10th year, but indexing/participating loans are available from day 1.
@@WWIIPacificHistory I understand this. Thanks for your comment.
The truth about ??? Respectfully?? How can you arbitrage bonds and Roths?
@@robertjones5227 have you looked at what happens to the arbitrage on IUL in the later years if you have one or two down years in a row. Pretty scary stuff.
David, Thank you for the video. I just heard about Doug Andrews and thank you for your perspective on IUL. One thing I'd like to mention is how the words economy and ecology have the same Latin root word, eco, basically translating to home. To me, this shows that to have a healthy home, we need solutions that are both economically AND environmentally intelligent. With this in mind, the Federal tax credit for Solar PV and solar hot water panels is 30%.
Shouldn’t we be careful about saying that markets go up in the long run when the US is kind of an exception? Aren’t we still waiting for the Nikkei to recover from 1989? Europe and Chinese stock markets haven’t exactly been on a “tear” either. Even the Federal Reserve recently said in a whitepaper, the last “bull run” was primarily due to money printing and artificially low interest rates. I still say that subscribing to Warren Buffett’s #1 Rule of Investing is still the best strategy. Let’s not lose any money first, wait for the crash and then take advantage of every single Government, Wall Street and Bank screw up. When the US stock market stays down for 20 or 30 years and it will, it’s gonna be ugly. The rest of the video was very good. Thank you
Have you ever seen the chart that looks like a periodic table of elements that shows every sector that leads in any given year? And it’s always a different sector. Moral of the story is that you have to be invested in all markets: US, foreign, emerging, real estate, etc.
Thank you for the video, one thing I'd like to mention is how the words economy and ecology have the same Latin root word, eco, basically translating to home. To me, this shows that to have a healthy home, we need solutions that are both economically AND environmentally intelligent. With this in mind, the Federal tax credit for Solar PV and solar hot water panels is 30%.
Maybe Doug doesn't recommend stock market investments because he has been banned by the SEC from doing so. In fact, he has numerous lawsuits filed against him that reduced his ability to do anything other than hawk IULs.
I hope that's not the case, but I see that as a possibility.
@@davidmcknight8201 th-cam.com/video/QExFQWV3yvM/w-d-xo.html
The IUL has the advantage that any insurance salesman such as the host can sell them.
I prefer diversification in my practice as well. Great vid
Thanks!
Very good video and makes a lot of sense. But I don't agree with it all being zero taxes. That 401k money is after tax so you missed out on some huge tax savings depending on your income bracket. The average taxes we have saved over the years by doing a regular 401k have been anywhere from 28-33% at our marginal tax rate. That is real money saved in that tax year. Getting ready to go into retirement and our income needed will be 1/3 of what we have lived off during our working and saving years. Our effective tax rate coming out ( based on current rates will be in the single digits after standard deductions). Would I have loved to start a Roth IRA when we were young making very little money? of course.
I like how Doug Andrew says his lazer fund has been around for a hundred years when IULs are a product of the 1990s! I guess he is referring to the good old fashioned whole life insurance.
2008 market crashed. But it took 2 years to bounce back and exceed the market. Age and time how one can recoup the crash.
Unless you have a volatility buffer in place at retirement you might have to postpone your retirement date.
I had some family that were executive / middle management bragging about their 401k being worth $500 k. When that statement dropped to 300k they were scared to death. Then Oprah gave her opinion and that was it. They wound up loosing $ 250 K. You can't overestimate fear and a cocky attitude.
Doug Andrew does not advocate all money in an IUL. He suggests 40-60% of assets should be non tax in retirement in order to not outlive your money. Also, not every IUL has a surrender charge. This is at the prerogative of the agent you choose to do business with.
If that is, in fact, what he advocates, I applaud him for it. I'd also perhaps suggest he make that more clear in his videos because 100% IUL is the conclusion one walks away with.
@@davidmcknight8201 From the Tax-Free Tools Landing Page: "As a side note, I don't recommend that every retirement dollar you set aside be in a max-funded, tax-advantaged insurance policy. While you will learn more during one of our seminars or personal consultations, just know that significant amounts of taxes can be reduced by including this type of insurance contract in your retirement portfolio-or by making it your primary retirement strategy like thousands of other highly successful, wealthy people have done." Emphasis was removed on I don't recommend.
I thought you had to wait 5 years to take money out of a ROTH without penalty I didn't think you can access it immediately.
You can access contribution amounts immediately with no penalty or income tax
What he said 👆
Explain arbitrage using a Roth product vs an IUL. How does it compare in the infinite banking arena?
@@robertjones5227 you take money out of the Roth the money is gone. Using a IBF or banking policy your money is still growing since you're taking loans. The spread is higher for you, so you're continuing your growth with taking out loans.
@@robertjones5227doesn't exist.
They are both right, different philosophical views but if you have both it’s almost a bullet proof way to ensure generational wealth, it’s not a get rich quick scheme it’s a bullet proof vest to ensure that no matter what you or your loved ones will be okay. Everything will be okay
Thank you! What if one does not have ROTH and/or IRA, but only social security benefits, and CDs and E-bills?
Is your question whether you will have a tax problem? If so, not likely.
I don't think this is a fair characterization. The "massive threat" Doug refers to when keeping money in only tax deferred strategies like 401k or IRAs is not "Market Risk" but "Tax Risk", i.e. needing to withdraw more than you had planned for, due to tax liability, and potentially running your retirement fund to zero.
No government has whole life insurance or IUL, but have stock, etc.
Really?
Doug Andrew is cool. He is like The Fonz if he sold life insurance.
LOL.
Using the term "LASER Fund" is deceptive IMO. It's life insurance. Reminds me of years ago when life insurance was sold as a "Private Pension Plan" or any other number of names other than Life Insurance. Many people who had "private pension plans' didn't even know that had life insurance! I know because I have met many of them over the years.
@@atm8797 I tend to agree.
@@atm8797 I think Doug is not allowed to sell securities over an issue he had with some investment he got his client in.
So, how bad are the penalties of moving a traditional 401k to a Roth 401k or do you recommend this?
There’s no penalties. Just taxes.
Suppose someone is medically disqualified from getting an Indexed Universal Life policy. What is a good, similar alternative investment?
A Roth IRA.
If you have a spouse or other insurable interest/ children, you can be the owner of that policy and/ or create a joint policy to get the benefits from, while they are the insured. I know people that do this.
He is not talking only market risk.. That is not what I heard. He is talking future tax rates as a risk. The info I have observed from is YES HE IS A PROPONENT OF IUL.. BUT SUGGESTS EVERYONE TRY TO ACHIEVE 40% to 60% of income in retirement as tax free. I wish you would have played the 4 benefit of IUL over a Roth.
The point is he should be advocating for every tax-free benefit in the IRS tax code, not just the IUL.
I have a pension that is most of my retirement that is taxable. Is there anything that I can do with it to turn it into taxfree money?
If you have already started receiving the pension payments then mostly likely not. If you haven't started receiving payments, then there is a possibility to take a lump sum, convert to Roth and then have tax free income.
I love your content.
I watch and read daily.
However,I feel like you missed the point of what Doug is doing
When clients hit 59.5 , instead of doing a Roth Conversion (which still has so much market volitility) they can start doing a strategic roll out, either into a roth annuity then flow distributions to an IUL or Directly to an IUL.
Both options save on future taxes and volatility.
Doug preaches a 40/60 split also,where IUL is 40% other stuff 60%. It's one of the first things he teaches in IUL insiders.
I understand. What I saw on his video made me very uneasy. It sounded like his plan calls for 100% into IUL. If he endorses other approaches he should talk about those on all of his videos as I do. Thanks for your comment.
@@DavidMcKnight Do you ever recommend strategic roll outs? Do you have 59.5 yo clients do a Roth conversion in an annuity assuming alignment with their goals?
@@earlharden175 i recommend what I call LIRP conversions but never with the entire IRA and I’m always pretty explicit about this. The rest would go into a Roth conversion.
Is there an max , that you can put in iul acc?
It’s determined by the amount of death benefit you have and insurance companies have limits on death benefit based on your income and net worth.
yes,there is a max depending on the contract amount and age.
It seems like you are trying to come up by bashing Doug Andrews.
Did you watch the video? I was actually quite respectful. But there are huge differences between how he and I view retirement planning.
Arbitrage a Roth.
Doug is referencing market risk and tax increases. And most people, most people, don't time the market right and get the upward trend. No sir. And Doug is talking about qualified money in the market, not unqualified money. The qualified money scam is a trap.
You probably shouldn’t be timing the market. And I object to maligning traditional tax-free tools like Roths and Roth 401(k)s. Lots can go wrong when you put everything into IUL.
Dave, you say lots can go wrong when you put all your money into an IUL. Please be specific? The problem I see with the Roth is that it is just a section of the tax code that can be revised at any time. With an IUL you not only have the benefits you speak of, you have the protection of contract law. An IUL policy is a contract, and the terms of that contract are much more difficult for congress to change, than the tax code around Roth IRA's. I also think that there is a significant advantage with the IUL in that you have access to your money at any age for opportunities or emergencies through policy loans that do not have a repayment schedule and if you choose, don't have to be repaid until death. With a ROTH if you take your principal out, it cannot be reinvested in the ROTH. @@DavidMcKnight
every time I have contemplated putting money in a taxed deferred account ... I realize that it would not take much of a tax hike to ruin that plan
Exactly.
IUL is not tax deferred, annuities are.
If you are young enough, sure play in the marker. Tho many says we are still waiting for a big crash. So I wouldn't do it now.
So market timing?
The Laser Fund!!!
So is that.a life insurance policy or what?!
@@DavidMcKnightnot a specific one, but yes it seems to be a specific structure for an iul that prioritizes access to the funds that you put into it at the soonest rate for retirement while optimizing growth as much as possible.
I’m thinking it really doesn’t matter to our good friend Doug because I’m thinking he will be dead before you run out of money.
Perhaps
roth is screwed when you make too much....for some, the roth isn't an option.
You can try a back door Roth or a Roth 401(k).
No wonder this Doug Andrews guy has his licenses revoked, “educating” people on dismantling their pre tax retirement plans and put them into post tax life insurance. So deceitful.
Yes I am aware of that.
You missed it bro 😂
Please elaborate. Your comment is meaningless at this point.
Anyone admiring D. Andrew has no real clue.