From the category archives:

Compound Interest

Create Your Own Economic Stimulus Plan

January 24, 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, January 26th 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 “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 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.

Uncertainty Prevails in the Marketplace

News headlines are rife with troubling economic news. For example, Fortune magazine recently reported that:

“GMAC, the troubled finance company that last week scored a third government bailout, said Tuesday it expects to post a record fourth-quarter loss of $5 billion.”

Early this year Associated Press reported that:

“U.S. consumers and businesses are filing for bankruptcy at a pace that made 2009 the seventh-worst year on record, with more than 1.4 million petitions submitted…The AP gathered data from the nation’s 90 bankruptcy districts and found 1.43 million filings, an increase of 32 percent from 2008. There were 116,000 recorded bankruptcies in December, up 22 percent from the same month a year before.”

Protect Yourself from Uncertainty

The Missed Fortune total asset optimization strategies help you create your own economic stimulus plan and make your future more certain.

This is done by harnessing the power of three miracles:

  1. Compound Interest
  2. Tax-Free Compounding
  3. Safe, Positive Leverage

In addition to other strategies, we use maximum-funded, tax-advantaged life insurance contracts to create all three of these miracles in your life. Furthermore, they offer liquidity and guaranteed safety of principal.

They also provide an indexing strategy, which means that you get all the upside benefits of the stock market, but none of the downside risk.

Isn’t it time for you to get started with your own 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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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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Taxed-As-Earned & Tax-Deferred Versus Tax-Free

November 12, 2009

A dollar doubling every period for 20 periods will grow to $1,048,000 if it is growing tax-free.

But if it’s taxed-as-earned, assuming a 25% marginal tax bracket, that money will only amount to $72,000. And in a 33% tax bracket, it would only be worth $27,000.

If that money grows on a tax-deferred basis, it will only be worth $666,000 when you withdraw.

It’s critical that you harness the power of compounding interest on a tax-free basis.

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How Long Will Your Nest Egg Last?

November 3, 2009

When it comes to your retirement money, we’ve recently talked about why it’s far better to accumulate your money tax-free, versus taxed-as-earned.

We’ve illustrated how $1 dollar doubling every period for 20 periods becomes $1 million if it grows tax-free — but if it accumulates taxed-as-earned you only reach to $72,000 in a 25% marginal tax bracket after 20 periods, or worse, $27,000 in a 33% marginal tax bracket (which many Americans find themselves in with federal and state income tax combined).

This proves why it’s critical to take advantage of one of the three miracles of wealth accumulation: tax-favored accumulation that keeps your principal safe.

You deserve to have your retirement dollars safe, and you deserve to have them accumulating the most interest possible, without the drain of taxes. There’s something else you deserve — to withdraw your money tax-free.

Here’s why:

nestegg-copy-300x278 How Long Will Your Nest Egg Last?Let’s say you have accumulated a $1 million nest egg, and you would like to live on $100,000 a year to enjoy a comfortable retirement.

If your retirement dollars are taxed upon withdrawal (as they are with most traditional plans), you would have to withdraw $150,000 a year to net $100,000.

That’s right, if you’re like most Americans in a 33% marginal tax bracket, you would have to pull out $150,000 and pay about one-third of it on taxes to live on $100,000 a year.

Do you know how long your $1 million nest egg would last under these circumstances?

Get ready — just 11 years. Wouldn’t you rather have the peace of mind knowing that you can enjoy your retirement income for as long as you live, whether that’s until your 60s, 70s, 80s, 90s or beyond?

What about when you pass away? Did you know that the average IRA and 401(k) is only worth about $.22 to $.28 on the dollar as it passes on to heirs? Wouldn’t you rather have 100-cent dollars to pass along?

There is just one retirement savings vehicle that:

  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 how to grow and protect your retirement money so you can maximize your future.

Isn’t it time you became wealthy?

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Would You Rather Have $1 Million, Or $72,000?

October 27, 2009

Recently, we discussed the concept that “time is money.”

We pointed out every 90 days that go by without implementing asset optimization strategies that leverage maximum-funded, tax-advantaged insurance contracts can result in a loss of $100,000 or more in future retirement resources (when tax savings are calculated into the equation).

Compound InterestWell, there’s even more to the issue of the time-value of money.

Consider this: A dollar doubling every period for 20 periods tax-free would amount to over $1 million by the end.

However, if it were taxed as earned (in a 25% marginal tax bracket, which most Americans are in) as it doubled over the same 20 periods, it would only be worth $72,000.

Why is that?

When it’s taxed as earned, you have to pay tax on the gain every period.

So at the beginning, your money doubles from $1 to $2. You pay tax on that gain. Then what’s left doubles again, and you pay taxes on that gain — and so on for 20 periods.

By the end, if you’re in a 25% marginal tax bracket (as most Americans are on their last dollars earned), instead of $1,048,000, you would have $72,000.

Now that’s if you’re in a 25% marginal tax bracket. If you live in 41 of the 50 U.S. states that have a state income tax, you’re more likely to be in a 32 to 33% tax bracket.

And if the government eventually increases taxes to cover the skyrocketing federal debt, some experts estimate you could end up in a 50 to 60 percent tax bracket.

It would be far better to accumulate your retirement savings on a tax-free basis. Even if you’ve already started saving in 401(k)s, IRAs or other qualified plans, you can start now to transition your money through strategic roll-outs and be on your way to accumulating your wealth tax-free.

It is indeed possible to optimize your assets in savings accumulation vehicles where your money: 1) accumulates tax-free; 2) can be withdrawn tax-free (even before age 59 ½ – without penalty); and 3) transfers to your heirs 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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The Global Warming Hoax: Beware Political & Corporate Bandits

October 11, 2009

Podcast: Download (23.0MB)

Missed Fortune RadioDid you miss this week’s show? Doug Andrew discussed the following:

Upcoming 3-Hour Webinar

Attend our free three-hour event live over the Internet this coming Tuesday, October 13th. The event will be held from 5:30 p.m. to 8:30 p.m. pacific time (6:30-9:30 p.m. mountain, 7:30-10:30 p.m. central, 8:30-11:30 p.m. 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.

The Global Warming Hoax

In the Dark Ages the Church oppressed the people and made millions through the sale of indulgences. Church members were said to be forgiven of their sins if they bought indulgences from the church.

Global warming today isn’t that far off from this despicable scheme. The players have changed, but the idea remains the same. Although science has proven global warming to be unfounded, politicians, bureaucrats, and corporates continue pushing it on us.

Why? Because they have financial incentives for doing so. These people don’t understand how to earn an honest dollar by creating new value for consumers, so they use the force of public policy to line their own pockets.

Any time you hear a corporate CEO talk about saving the planet, you should strongly consider shorting or selling that stock. They’re using global warming as an excuse to prop up their businesses.

3 Miracles of Wealth Accumulation

In an era of economic decline, increased taxation, and skyrocketing inflation, it’s critical that you strategically position your assets as safely and wisely as possible. Specifically, you must take advantage of these three miracles:

  1. Compounding interest.
  2. Tax-favored accumulation that keeps your principal safe.
  3. Safe, positive leverage.

Do you know which products and vehicles give you all three advantages? Are you using them?

To illustrate the power of compounding interest, consider this: Take a regular sheet of paper. Fold it in half. Fold it in half again. Continue folding it another 48 times, for a total of 50 folds.

After 50 folds, how thick would the stack of folded paper be? A foot? 10 feet? 1 mile?

Try 93 million miles — from the earth to the sun.

How does this happen? You’re doubling the stack with every fold. It’s the miracle of compounding interest. After being folded 24 times, the stack is just 1 mile high. At the 51st fold, the stack reaches from the earth to the sun, then halfway back to the earth.

Are you harnessing the power of compounding interest in your finances?

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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Get Off the Government’s Sinking Ship & Board Your Own Lifeboat

October 4, 2009

Podcast: Download (23.0MB)

Missed Fortune RadioDid you miss this week’s show? Doug Andrew discussed the following:

Attend our one hour event live over the Internet this coming Tuesday, October 6th. We’re holding it at two times, the first at 11 a.m. Pacific/1 2 Noon Mountain/1 p.m. Central, and the second at 6:30 p.m. Pacific/7:30 Mountain/8:30 Central. 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.

It’s time to save yourself because big government can’t. Politicians are experts at finding bad news, but they’re out of touch with reality. Innovations and technological breakthroughs are happening all around us every day. The innovation, resilience, and responsibility of the American people is what will save us from our current troubles, not more government spending and stimulus packages.

It’s time to jump off the government’s sinking ship and board your own lifeboat instead. But how? By being wiser about your financial strategies.

There are three ways to save money:

  1. Taxable savings accounts (mutual funds, cds, money markets, etc.).
  2. Tax-deferred accounts (IRAs, 401(k)s, etc.).
  3. Tax-free accounts (properly structured and funded life insurance contracts). These offer full access, no penalties upon withdrawal, they grow tax-free, they can be accessed tax-free, and they transfer tax-free income to your heirs upon death.

It’s critical to understand the time value of money to realize how important taxes are to the equation. A dollar doubling every period for 20 periods grows to $1 million if it grows tax free. However, if you’re in a 25% marginal tax bracket it will only grow to $72,000 if it’s taxed during growth. Shelter your accounts from taxes to harness the time value of money.

The cost of waiting can be devastating. Every 90 days you go without implementing our specialized asset optimization strategies can result in a loss of $100,000 or more of retirement resources when taxes are calculated into the equation.

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 at www.babyboomerblunders.com.

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Avoid a $100,000 Loss, Start Optimizing Assets Now!

August 12, 2009

FACT: Every 90 days that go by without implementing the Missed Fortune Asset Optimization Strategies can result in a loss of $100,000 or more in future retirement resources for the average client when tax savings are calculated into the equation.

Why is that?

If you’re feeling a bit skeptical, that’s understandable. The average client who comes to implement the Missed Fortune Asset Optimization, Equity Management, and Wealth Empowerment strategies is skeptical at first, too.

New clients wonder how we can dramatically increase their retirement resources by repositioning assets (often those that have not been optimized) without increasing their outlay one dime.

The fact is, we do it all the time. That’s our unique specialty.

After people see the difference between the “darkness of the night” of their current retirement strategies, versus the “brightness of the day” of the Missed Fortune strategies, they are convinced to get in motion and get it done now.

Since it takes about 90 days on average to complete the True Wealth Transformation unique process, every month-every quarter-that slips by can result in a tremendous loss to precious future retirement resources, due to the time-value of money.

To illustrate, a typical client has some money accumulated in IRAs or 401(k)s that is not being optimized, and most will lose one-third of that value (due to taxes) when they retire and begin to withdraw money.

Many clients also have other non-performing assets such as CDs, money market accounts, and mutual funds that either have low yields, or may be volatile and unpredictable in growth. These accounts are often taxed-as-earned or tax-deferred, rather than being totally tax-free investments.

The average client also has a home worth about $250,000 - $300,000 with at least some equity in that home. Most people are anxious to get their house paid off and be “out of debt,” so they send extra principal payments on their mortgage, or they obtain a 15-year mortgage.

We show them a smarter, quicker way to get out of debt with successful equity management.

As you can see, most people are crawling, walking, or at best, jogging toward the finish line of financial independence, when they could be sprinting with Missed Fortune strategies.

With most clients, we reposition assets (between lump sums and monthly reallocation) during the first five years of their plan, which comes to a total of about $300,000 on average (some clients are substantially more, and some are less).

Over a 30-year period of a client’s life-for example, from age 35 to 65, age 45 to age 75, or age 55 to age 85-$300,000 has the potential of growing tax-free to a nest egg of about $4.4 million.

However, if clients delay starting their plan and that same money is put to work for only 357 months rather than 360 months, the account value at the same point in time down the road would be only about $4.3 million-a difference of $100,000!  No big deal you say?

Well, an extra $100,000 can generate $666 a month of tax-free income for the rest of your life-or into perpetuity. And that doesn’t take into account the savings of unnecessary income tax you could realize by employing the Missed Fortune strategies sooner than later.

The greatest question is why wait? If you had a serious disease and could be cured if you saw a specialist sooner than later, would you rearrange your schedule and take off work to get treated?

Many people have a financial illness that we cancure and it’s far better to tend to it sooner than later.

If someone offered you an extra $100,000 if you would take a day off your regular job to work on something else, would you jump at the chance? Missed Fortune is giving you that chance.

Make getting started on your Missed Fortune True Wealth Asset Optimization plan an A-1 priority! It can pay you back with huge dividends in the future!

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Are Infinite Rates of Return Possible?

February 1, 2009

Podcast: Download (23.0MB)

Why are people feeling confused, isolated, and powerless? Focus on how we can help others. Capitalize on our wisdom. Selling a home in a soft market. Infinite rates of return - Is it possible? The miracle of compound of interest. From one dollar to a million. Safe, positive leverage.

Free Customized Asset Optimization Report: Get a snapshot of how the Missed Fortune strategies can benefit your financial future. In order to get your free report call Missed Fortune Radio at 800-925-0217 and answer five basic financial questions. We’ll then contact to get you this Free report and include Doug’s new “Baby Boomer Blunders” e-book.

DOUG LIVE. Doug will be speaking on March 2nd from 6:30 to 9:30 in San Diego, CA. To register for this free event call us at 800-925-0217 or register on-line at www.missedfortune.com/events

Doug will also be speaking on Saturday, March 21st in Woodland Hills, CA. To register for this free event call us at 800-925-0217 or quickly register online by clicking here. This event is free due to generous sponsorship by Ogan Financial Group.

Missed Fortune 101 MP3 Book Download. Download the Missed Fortune 101 unabridged audio MP3 for only .99 Cents! www.missedfortune101.com

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