From the category archives:

Inflation

Set Up Your Family-Empowered Bank To Limit Taxes

May 2, 2010

Podcast: Download (23.0MB)

Missed Fortune RadioThis week Doug Andrew discussed the following:

Upcoming Complimentary Webinar

Attend our free 90-minute webinar live over the Internet this coming Tuesday, May 4th 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 Optimization: How to Choose the Right Investments.” You’ll learn how to maintain liquidity and guarantee safety of principal while earning a healthy, tax-free rate of return that outpaces inflation.

Register now by calling 1-888-76-Radio (888-767-2346). If operators are busy, please call again.

All attendees receive a bonus hardcover copy of Last Chance Millionaire, Doug Andrew’s New York Times best-selling book.

Family-Empowered Banks Beat IRAs Hands Down

We know that in the next year income taxes will go up at least 5 percent. And the taxes to cover health care reform will be about another 3 percent.

Our clients realize that it’s better to pay taxes now rather than postponing them and paying 8 to 10 percent more if they don’t convert their IRAs and 401(k)s now.

The government currently has $62 trillion in unfunded liabilities. The writing is on the wall: Taxes will go up, as will inflation.

You need to learn how to use the internal revenue code to your advantage to create a family-empowered bank.

In a family-empowered bank using innovative life insurance contracts, your money grows tax-free, you can withdraw it tax-free, and it transfers to your heirs tax-free.

In these life insurance contracts I’ve averaged about 9 and a half percent returns for the last 30 years. About 1 percent of this pays for life insurance, which comes along for the ride and gets paid for by Uncle Sam.

This means I’ve averaged an 8.2 percent cash on cash return. Every $1 million I accumulate generates $70,000 per year of tax-free income.

When I die my family will receive millions of dollars of tax-free life insurance proceeds.

Meet with a Missed Fortune advisor to learn how you can set up your own family-empowered bank.

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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You’re Being Penalized for Saving, Investing, & Staying Healthy

April 18, 2010

Podcast: Download (23.0MB)

Missed Fortune RadioThis week Doug Andrew discussed the following:

Upcoming Complimentary Webinar

Attend our free 90-minute webinar live over the Internet this coming Tuesday, April 20th 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 Optimization: How to Choose the Right Investments.” You’ll learn how to maintain liquidity and guarantee safety of principal while earning a healthy, tax-free rate of return that outpaces inflation.

Register now by calling 1-888-76-Radio (888-767-2346). If operators are busy, please call again.

All attendees receive a bonus hardcover copy of Last Chance Millionaire, Doug Andrew’s New York Times best-selling book.

Government Penalties for Healthy Behavior

We recently passed Tax Freedom Day, the day the commemorates how long you work for the government before being able to enjoy the fruits of your own labor.

Did you know that Americans will pay more taxes in 2010 than they will spend on food, clothing and shelter combined?

And as William La Jeunesse reported:

“When you combine the public debt — the amount we owe China and other nations — with our intragovernmental debt — what we owe social security — the interest alone is $383 billion. That’s more than what we spend on energy, agriculture, homeland security, education and almost every other government agency combined.”

We live in a great country and we should all pay our fair share to keep our nation strong and vibrant. Unfortunately, however, many people pay far more than their fair share.

What’s worse than how much we all pay in taxes is the fact that government policies penalize healthy habits and behavior.

For example, in a New York Times article by Roni Karyn Rabin entitled “Could Health Overhaul Incentives Hurt Some?,” Helen Darling, president of the National Business Group on Health, says,

“Right now, the employees who are healthy and living a healthy lifestyle are paying for those who are not. They are overpaying almost twice as much for the unhealthy: the obese, the smokers, people like that. You, an employee who is healthy and doesn’t smoke, are subsidizing the medical claims, with your premiums going up every month, to pay for someone who smokes, for someone who is obese.”

By 2020, 90 percent of all federal tax revenue will be allocated just to servicing the national debt and deficit, and most Americans will be paying 50 percent of their income in taxes.

Currently, 55 percent of Americans pay more in taxes than they receive in social benefits, and the remaining 45% receive more benefits than they pay in taxes.

This ratio is only going to get worse — we’ll continue penalizing the producers to support consumers.

Such a system disincentivizes saving, investing, maintaining physical health, and other behavior.

Play Good Offense With Your Personal Finances

It’s been said that the best defense is a good offense. With the government constantly attacking your hard-earned wealth, this holds true for your personal finances.

Rather than waiting for the government to rob your production and then playing defense with your CPA, you need to take a more proactive approach.

You need to put your serious cash in vehicles that give you the following benefits:

  1. Tax-free growth, tax-free withdrawal, and tax-free transfer to heirs.
  2. Penalty-free liquidity.
  3. Safety of principal.
  4. A healthy rate of return that outpaces inflation.

Schedule a free consultation with a Missed Fortune advisor today to jump-start your personal finance offense.

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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The 31 FLAVORS of Missed Fortune

April 8, 2010

“FLAVORS” stands for “Fortunes Lost Amid Valid Optimization & Reallocation Strategies.”

The following are the 31 most common ways we see people losing money. Read them to consider where you may be losing, then meet with a Missed Fortune advisor to plug the holes.

Retirement Planning (choosing the wrong investments):

1. Using short-term investments for long-range goals and long-term investments for short-range goals

2. Putting money in “crawl” investments such as CDs and Money Markets

3. Putting money in “walk” investments such as annuities

4. Thinking that IRAs and 401(k)s are the best way to save for retirement

5. Postponing qualified plan distributions until age 70½ and/or taking minimum distributions

6. Not employing one of your greatest assets—home equity via a reverse mortgage

Your Home and Other Real Estate:

7. Not employing the lazy, idle dollars trapped in your home and other real estate

8. Sending extra principal payments against your mortgage

9. Paying large cash down payments when acquiring real estate

10. Paying unnecessary capital gains when selling rental income real estate

11. Not realizing that you can buy property without down payments or credit.

12. Renting your residence instead of owning (buying) it

Tax Planning (paying unnecessary tax):

13. Not claiming enough withholding W-4 allowances (to get bigger tax refunds)

14. Not maximizing tax deductions and itemizing them on your tax return

15. Not understanding the huge difference between tax-deferred and tax-free growth on savings and investments

Asset Management (choosing the wrong strategies):

16. Trying to time the market (thus buying and selling at the wrong times because of emotion)

17. Relying on the purchase of commodity products rather than employing proven investment strategies

18. Not maintaining liquidity with all assets (the ability to get your money when you need it)

19. Not keeping your principal safe (protecting yourself from potential loss of principal)

20. Not earning a rate of return greater than taxes and inflation, and the cost of those funds

21. Not fully understanding the power of compound interest

22. Locking up serious cash in gold and other precious metals

Risk Management and Insurance:

23. Not funding your life insurance properly or using insurance for superior capital accumulation

24. Not letting Uncle Sam pay for your life insurance (by redirecting otherwise payable income tax)

25. Not structuring your health insurance for optimum efficiency with the proper deductibles

26. Not structuring your auto and homeowners insurance efficiently with the proper deductibles

27. Not understanding safe, positive leverage (the ability to own and control assets with very little or none of your own money at risk or tied up in the asset)

Credit and Debt Management:

28. Not maintaining your credit score at 720 or higher

29. Paying off debt (including your mortgage and student loans) the wrong way

Estate Planning:

30. Having too much liability exposure and losing hard-earned assets to losses and frivolous suits

31. Not eliminating or reducing unnecessary estate tax through the use of trusts and life insurance

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With Taxes Rising & the Value of the Dollar Falling, What Should You Be Doing?

February 9, 2010

When David Walker, Comptroller General of the United States Government Accountability Office (GAO), left office about two years ago, he stated he needed to retire so he could tell the American public the truth.

Credit RiskThe truth is we currently have national debt that exceeds $13 trillion, which represents a liability of $43,000 per American citizen.

It’s also estimated that this year’s deficit will equal 2009’s deficit and will likely add about $1.6 trillion to the debt.

Yet we continue to experience stagnant unemployment, shrinking tax revenue and a struggling economy for the foreseeable future.

Not only that, but the Trustees of Social Security estimate a current unfunded liability in excess of $100 trillion in 2009 dollars.

This means that the federal government has obligated itself to pay more than $100 trillion over and above any taxes it expects to receive.

In other words, that’s how much would have to be invested at U.S. Treasury rates to pay the future liability owed to Social Security recipients who have faithfully paid into the system during their careers.

Most people can’t even begin to comprehend what $100 trillion is. It’s “100” with 12 zeros to the right. Just $1 trillion would be $1 dollar bills lined up end-to-end from here to the moon and back—200 times!

Even though many believe that Social Security is our greatest entitlement problem, Medicare is six times larger in terms of unfunded obligations, according to David Walker of the GAO.

It would require $700,000 from every full-time working individual in America in order to cover this huge liability. How is that going to happen?

On top of that, Congress estimates that if the proposed health care reform comes to fruition, it will be at an estimated cost of just under $2 trillion during the next ten years.

In the meantime, the interest alone on the national debt accrues at $41 million an hour (just under $1 billion a day)—that’s $690,000 per minute, or $11,500/second!

When individuals find themselves with more outgo than income, they are forced to either cut expenses or increase income. Well, the federal government is definitely not cutting its spending, so it is clear it will be forced to raise taxes dramatically and will likely be printing more money.

The Congressional Budget Office estimates that, by mid-century, a middle income family will have to pay two-thirds of its income in taxes!

I can confidently assure you that:

  1. Your current tax bracket will likely be the lowest bracket you will ever be in, and
  2. Your money will never be worth more than it is today.

So, what should you be doing?

Many smart people are now converting their IRAs and 401(k)s (and other qualified accounts) by doing what I call a “strategic rollout.”

This is a method of taking care of taxes now on those accounts at a lower rate and repositioning the money into vehicles that will accumulate tax free from this point forward and more importantly, will provide tax-free income later.

Why wait for your IRAs and 401(k)s to recover from their losses and then pay tax on that higher amount later? You can either pay the IRS now or you will pay them more later.

Now is the time to convert your IRAs and 401(k)s to better plans. There are safe and proven strategies that will help you get your future back!

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Save Yourself from Obamunism

February 7, 2010

Podcast: Download (23.0MB)

Missed Fortune RadioThis week Doug Andrew discussed the following:

Upcoming Complimentary Webinar

Attend our free 90-minute webinar live over the Internet this coming Tuesday, February 9th 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 “Retirement Planning & Tax Strategies.” You’ll learn how to get money trapped in 401(k)s and IRAs out of them tax-free. You’ll also learn how to maintain liquidity and guarantee safety of principal while earning a healthy, tax-free rate of return that outpaces inflation.

Register now by calling 888-76-Radio (888-767-2346). If operators are busy, please call again.

All attendees receive a bonus hardcover copy of Last Chance Millionaire, Doug Andrew’s New York Times best-selling book.

The Messiah President

Since taking office, President Obama’s greatest frustration has been the U.S. Constitution, which was written to thwart charismatic personalities and political messiahs who promise a free lunch.

Specifically, the founders instituted measures to prevent wealth redistribution, but Obama is bent on bypassing or pushing through them.

Most of Obama’s policies consist of a takeaway from the most industrious and productive citizens and a giveaway to those who make the fewest contributions and take the least personal responsibility.

The results will be to increase the number of potential voters who will receive more tax benefits than they pay for, which will put even further strains on our already bursting national debt.

Bleak National Deficit Forecasts

Regardless of your political leanings, everyone can agree that the national debt is unsustainable, and that swift action must be taken to get it under control.

The New York Times recently reported the following:

“The additional tax cuts and public works spending that President Obama has proposed to spur job creation would add $100 billion to this year’s deficit, bringing it to nearly $1.6 trillion, according to an administration official.

“A deficit of that size for the fiscal year that ends Sept. 30 would be about $150 billion greater than last year’s deficit, which was the highest since World War II.

“Measured against the size of the economy, a $1.6 trillion shortfall would equal almost 11 percent of the gross domestic product. Economists generally consider annual deficits above 3 percent to be unsustainable.”

Entrepreneurs are now spending much more time with accountants in order to save money on taxes. This time comes at the expense of time that could be spent innovating and producing, which would increase tax revenues.

But what should you be doing? How can you save yourself from a bloated government that is coming after your money on all fronts?

Create Your Own Economic Stimulus Plan

You may not be able to personally control what the government does, but there are measures you can take to protect yourself from today’s government spending that will catch up with all of us in the future.

Specifically, if you have money trapped in government-sponsored and -controlled IRAs and 401(ks), you should use a strategic rollout to free that money up and put it into a much better plan.

The Missed Fortune asset optimization strategies provide tax-free growth, tax-free withdrawals, and tax-free transfer to your heirs.

They give you all the benefits of upside market growth, but none of the downside of market losses. Your principal is guaranteed to be kept safe, and you have full liquidity.

This explains why Missed Fortune clients haven’t lost a dime in this distressing economy.

Take ownership for your future by scheduling a free consultation with a Missed Fortune wealth advisor now.

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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CPR: Your Personal Economic Stimulus Package

January 7, 2010

The economy has tanked. Our current national debt costs us $1 billion a day, or $41 million an hour. Despite opposition from most Americans, Congress continues its reckless, self-serving spending spree.

So who’s stepping in to save the day? Will the government economic stimulus packages really revive America?

What can you do to save yourself from rising taxes and ballooning inflation? You need to perform CPR, meaning “Creative Practical Recovery,” on your personal finances and create your own economic stimulus package.

Watch this video to learn more:

*If you are getting this feed in RSS or email and cannot see the video, please click on the header to view it on the blog.

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Saving Money Shouldn’t Cost You

January 5, 2010

A recent New York Times article, “At Tiny Rates, Saving Money Costs Investors,” spelled out the downside of traditional savings vehicles.

The article states:

“Millions of Americans are paying a high price for a safe place to put their money: extremely low interest rates on savings accounts and certificates of deposit…. Many have seen returns on savings, CDs and government bonds drop to niggling amounts recently, often costing them money once inflation, fees and taxes are considered.”

This underscores what the True Wealth Strategies have been teaching for quite some time. Taxed-as-earned savings vehicles will hinder your path to wealth much more than those that are tax-advantaged or tax-free.

To illustrate, one dollar doubling every period for twenty periods will grow to over $1 million if it does so tax-free.

If it’s taxed-as-earned, then one dollar doubles to $2, but you will only have $1.75 after paying 25 percent in tax.

The $1.75 doubles to $3.50 in the next period, but if you pay tax on the increase every period — at the end of the same twenty periods — instead of having $1 million, you would only have about $72,000 in a 25 percent tax bracket. In a 33 percent tax bracket, you would only have $27,000!

And yet that is how most Americans save—by using after-tax dollars and putting them in investments that are taxed-as-earned.

This is why it’s so important to learn more about maximum-funded, tax-advantaged insurance contracts. They are the only retirement savings vehicles where your money:

  1. Accumulates tax-free
  2. Can be withdrawn tax-free (even before age 59 ½ – without penalty)
  3. Transfers to your heirs tax-free when you pass away

Find out more and begin now to empower your financial future.

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Health Care Reform: Elitism Masked as “Caring”

December 20, 2009

Podcast: Download (23.0MB)

Missed Fortune RadioThis week Doug Andrew discussed the following:

Upcoming Complimentary Webinar

Attend our free 90-minute webinar live over the Internet this coming Tuesday, December 22nd 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 Wealth & Total Asset Optimization: How to Establish Your Own Family-Empowered Bank.”

You’ll learn how to safely accumulate an additional $1 million tax-free that can generate $70,000 per year in tax-free income. This is much better than receiving $100,000 per year from a 401(k), IRA, or other vehicle that requires you to pay taxes on the back end.

Register now by calling 888-76-Radio (888-767-2346).

Just for registering you’ll receive a bonus e-book and audio book on the IRA/401(k) dilemma.

Furthermore, all attendees will receive a bonus hardcover copy of Last Chance Millionaire, Doug Andrew’s New York Times best-selling book.

The Elitism of Health Care Reform

On July 22nd, 2009, James Lewis published an article in American Thinker entitled “Does Ted Kennedy Deserve His Extended Cancer Care?”

Prior to his death caused by brain cancer, Mr. Kennedy stated that nationalized health care was “the cause of his life.”

According to the article, the question that none of the health care reformers have been asking is this: “Is Senator Kennedy’s life valuable enough to dedicate millions of dollars to extending it another month, another day, another year?”

The article continues:

“The socialist question…must be whether extending Senator Kennedy’s life by another day, another month or year is socially valuable enough to pay for what is no doubt a gigantic and growing medical bill. Kennedy is a US Senator, and all that money has been coughed up without complaint by the US taxpayer. Kennedy is already entitled to Federal health care, and it is no doubt the best available to anyone in the world…

“…There’s only so much money available…Who deserves to live, and who to die? But nobody debates any more about who has the power to make that decision. In socialist Europe the State does. It’s a done deal.”

There is a growing perception that the political establishment in Washington is a self-serving, special interest clique that looks after its own before any other concern.

Legislation is designed to award its authors first before anyone else — all paid for by tax money. The budget deficit in 2009 quadrupled that of 2008.

Create Your Own Economic Stimulus Plan

With all of the bailouts, bureaucratic tinkering, and Washington favoritism, things are getting worse and worse for the average American. Taxes are going up and the value of the dollar is going down.

We’re operating on an economic caffeine and sugar high, which will inevitably crash.

The best response is to save yourself — because big government can’t. You need to perform “CPR” on your finances, meaning “Creative Practical Recovery.”

The Missed Fortune concepts, strategies and products provide a much-needed individual economic stimulus package for savvy investors. They provide the following:

Isn’t it time for you to get started with your personal economic stimulus plan?

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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Cut Back, or Spend More?

November 10, 2009

Either Way, Protect Yourself and Your Future

What happens when financial challenges hit? We have two choices: We can spend less, or we can earn more.

What has the government done with its recent financial challenges? Rather than cutting back, it’s chosen to spend more.

In fact, we’re looking at an estimated deficit of $1.8 trillion this year alone, which will be quadruple last year’s deficit.

taxpayersplea-200x300 Cut Back, or Spend More?With this kind of spending, the government will need to generate more revenue to make up the difference.

And how does the government generate more? One of two ways:

  1. The government can print more money (which causes inflation).
  2. It can take the money from us in the form of higher taxes.

We’ve got to face the reality that taxes are likely only going up, not down, in the future.

And it’s also important to realize that your money is worth now more than it ever will be (because of inflation), and that you are likely in the lowest tax bracket you will ever be in (because of several factors, including the likely waning of tax deductions as your financial situation changes in the future).

So what can you do to protect yourself?

You can start by repositioning money out of your taxed-as-earned (like CDs or money markets) or tax-deferred savings vehicles (like 401(k)s and IRAs), and put your serious money in maximum-funded tax-advantaged insurance contracts.

These are the only savings accumulation vehicles where your money:

  1. Accumulates tax-free
  2. Can be withdrawn tax-free (even before age 59 ½ – without penalty)
  3. Transfers to your heirs income tax-free when you pass away

Find out more and begin now to empower yourself, and your financial future.

Isn’t it time you became wealthy?

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Why it’s Time to Retire the 401(k)

November 1, 2009

Podcast: Download (23.0MB)

Missed Fortune RadioThis week Doug Andrew discussed the following:

Upcoming Free Webinar

Attend our free 3-hour webinar live over the Internet this coming Wednesday, November 4th at 5:30 p.m. pacific (6:30 mountain, 7:30 central, 8:30 eastern).

Don’t miss your chance to understand how to protect your money during this economic crisis and get competitive rates of return during the good years. This strategy is called indexing and you need to know all about it. To register call 888-76-Radio (888-767-2346).

Just for registering you’ll receive a free e-book and audio book on the IRA/401(k) dilemma. Admission is free for Missed Fortune Radio subscribers and listeners. All attendees will receive a free copy of Last Chance Millionaire, Doug’s New York Times best-selling book.

Time to Replace the 401(k)

Time magazine recently published an articled entitled “Why It’s Time to Retire the 401(k)” that essentially teaches what we’ve been teaching with Missed Fortune for over 35 years.

Consider these revealing quotes from the article:

“The ugly truth, though, is that the 401(k) is a lousy idea, a financial flop, a rotten repository for our retirement reserves…From the end of 2007 to the end of March 2009, the average 401(k) balance fell 31%, according to Fidelity.”

“In what must seem like a cruel joke to many, the accounts proved the most dangerous for those closest to retirement. During the market downturn, the 401(k)s of 55-to-65-year-olds lost a quarter more than those of their 35-to-45-year-old colleagues. That’s because in your early years, your 401(k)’s growth is driven mostly by contributions…But the longer you hold a 401(k), the more market-exposed it becomes.”

“…nearly 73 million Americans…now have a 401(k). And collectively we pour more than $200 billion into these accounts each year. But retire rich? Don’t bet on it. The average 401(k) has a balance of $45,519. That’s not retirement. That’s two years of college. Even worse, 46% of all 401(k) accounts have less than $10,000. Today, just 21% of all U.S. workers are covered by traditional pensions, and the number shrinks every year.”

It’s time to stop relying on the government to provide retirement for us. We can’t even trust their incentives. They give us a tax break up front but then get it back by taxing us when we withdraw our funds.

The 401(k) Replacement

There is a solution to the 401(k) dilemma. It’s a product that guarantees safety of principal while providing competitive rates of return. It provides liquidity and flexibility. It keeps you away from the dangers of market volatility. Best of all, it provides both tax-free accumulation and tax-free withdrawal.

This product is a maximum-funded, tax-advantaged life insurance product that uses an indexing strategy to lock in your gains and prevent losses.

Everyone who has followed our advice has not suffered any losses, while those invested in the market have been devastated.

2-Day True Wealth Transformation Clarity Retreat

Our retreats help you optimize your assets, manage your equity, and empower your wealth.

Our next retreats are November 6th and 7th in San Diego, California, and November 20th and 21st in Salt Lake City, Utah. Contact us now to learn more and to register.

Free Missed Fortune E-Book: Baby Boomer Blunders

The Problem? 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 free e-book now at www.babyboomerblunders.com.

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