Different Results Require Different Action
Posted on | December 25, 2011 | No Comments
Podcast: Download (22.9MB)
This week Doug Andrew discussed the following:
Upcoming Free Webinar
Attend our free 90-minute webinar live over the Internet this coming Tuesday, December 27th at 11:00 a.m. pacific (12:00 p.m. mountain, 1:00 p.m. central, 2:00 p.m. eastern), and again at 6:30 p.m. pacific (7:30 mountain, 8:30 central, 9:30 eastern). The topic is “True Asset and Wealth Optimization.” You’ll learn how to choose the right investments for liquidity, safety, rate of return and tax benefits.
All attendees receive a bonus hardcover copy of Last Chance Millionaire, Doug Andrew’s New York Times best-selling book.
Resolving to Make the Right Changes
As we make our New Year’s resolutions, a question to consider is whether this is the year you’ll do things differently.
This is especially true with respect to your financial future.
More people need to start taking ownership of their future instead of waiting for the government to take care of them or making Social Security the basis of their future retirement.
Too many folks have simply kept following the crowd hoping to recoup their losses. They’ve continued to sock money away in tax-deferred savings vehicles thinking they’ll be in a lower tax bracket when they retire.
A perfect example of this is those who keep putting their money at risk in the market and “hang in there” waiting to realize the average 12% returns they were promised.
They don’t understand that if, over a decade, their return goes up 10% for half of those years and goes down 10% for the other half, they won’t break even. Instead they’ll end up with only 95% of the amount they started with. No one can afford to lose money on a regular basis.
If your answer is to keep doing what you’ve always done, you can expect to keep getting what you’ve always gotten.
If those folks had used the Missed Fortune indexing strategies instead, they could see their money safely grow as the market goes up, but enjoy safety of principal and not lose a dime when the market declines. Over the past decade, these indexing strategies have enabled many people to earn 7.23% actual return—and that’s tax-free!
This may be the time to make a resolution to start rerouting some of the money you’ve been sinking into 401(k)s or IRAs and start taking distributions before the Bush tax cuts expire at the end of next year. This is known as a strategic rollout and it will make a world of difference when we see taxes go up again.
If you do want to learn how to do things differently, now is the time to empower yourself. Thousands of people have found a better way to take ownership of their future through learning and implementing the Missed Fortune strategies.
With these strategies, you’ll clearly understand the three key elements of a good investment:
- Liquidity- The ability to get to your money when you need it.
- Safety- The practice of protecting your principal by making turning the money you make in any given year into newly protected principal.
- Rate of Return- This means that you are earning a predictable, tax-free rate of return that allows you to outpace inflation.
An investment that has all 3 of these qualities will be a good investment.
This is the kind of knowledge that promotes confidence and certainty at a time when so many are struggling with confusion and a sense of isolation
The 3 Big Secrets
Zig Ziegler used to talk about the difference between a $10,000 racehorse and a $1 million racehorse. He’d ask if the million dollar racehorse was worth 100 times more than the other one because it was 100 times faster than the $10,000 one.
The answer was “no.”
Sometimes the only measurable difference between these two horses was a few thousandths of a second.
His point was that the horses started out on a much more level playing field than you might suspect.
When it comes to those who accumulate great wealth, the same principle applies. Many didn’t inherit their wealth; they simply saw opportunities that others around them did not.
The three marvels of wealth accumulation are:
Compound Interest. Einstein called it the most misunderstood phenomenon on the planet. If you could fold over a piece of copy paper 50 times so that it doubled in thickness each time, it would be over 93 million miles in thickness.
Money can likewise accumulate at an astounding rate thanks to compound interest, but only when it grows tax-free.
Tax-Free Accumulation. The second marvel of wealth accumulation is one of the most important especially when considering the likelihood of taxes going up in the future.
A million dollar tax-deferred nest egg will only be worth around $666,000 after Uncle Sam claims his share.
Safe Positive Leverage. This is the ability to own and control assets with very little or none of your money actually tied up or at risk in the asset.
If you’re borrowing money at 4% and are able to leverage that money where you’re earning an 8% rate of return, you’re now getting infinite return.
These three marvels are just a few of the principles that make all the difference for those who accumulate wealth in any economy.
Learn how to make them work for you by meeting with a Missed Fortune advisor today.
Bonus Missed Fortune E-Book: Baby Boomer Blunders The average Baby Boomer has less than $50,000 accumulated for retirement (which means many have less than that), primarily due to bad habits and having money invested in the wrong places where economic downturns can diminish their nest egg. Download this e-book now at www.babyboomerblunders.com.
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