From the category archives:

Lock & Reset

Don’t Lose the Financial War

June 20, 2010

Podcast: Download (22.9MB)

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, June 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 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.

Tax-Payers Versus Tax-Eaters

Many Americans grasp at the hope of a 401(k) taking care of them in their retirement years.

Even after taking huge hits over the last 5 years where most people still don’t have now what they had in 2006, 89 percent of Americans continue to pay into these systems. Why?

Dan Sullivan wrote in the spring edition of The Global Thinker:

“All entrepreneurs today are in a war, whether they realize it or not. They are in the crosshairs of an enemy who wants to make their businesses less successful and less profitable. The war can be stated quite simply, it is between the tax generators and the tax eaters. It is between those who are productive in society and those who live off of others productivity.”

This is important to understand. Taxes are being used less and less for the public good. Instead, they are financing the lives of people who are not giving anything back.

Tax-Eaters want to increase government spending, increase permanent entitlement programs, and increase the number of permanent government jobs.

Understand that the creation of every one of these new jobs is an attack.

Currently 55 percent of people are Tax-Payers. 45 percent are Tax-Eaters — people taking more in social benefits than they pay in.

Over the next 4-8 years there should be a shift over at least 10 percent, increasing the Tax-Eaters in our society.

Why is all of this an issue?

Government Promises are Shaky Ground

This will have dire consequences for all the hard-working people planning their retirements based on the promises of others.

For example, consider the shell game being played in New York. The New York Times writes:

“Pension costs for the state and municipalities are soaring as a result of enhanced retirement benefits for public employees and the decline in the stock market of the past 2 years. Again, given the declines in tax revenues and larger budget short falls, the governments are struggling to come up with the money to make the contributions.”

If cities and states and even corporations continue to borrow money from retirement pools to pay retirement benefits to the beneficiaries, at some point the well is going to dry up.

It is time to take your retirement into your own hands.

Learn to Protect Yourself

Learn to safeguard yourself against the ups and downs of the market. Too many people tolerate market volatility. They suffer from the “that’s just the way it works” mentality.

That is only the way it works if you let it work that way.

You have worked and continue to work hard. You should have the peace of mind knowing that in your retirement years that nest egg will be there for you.

Learn to understand that when the economy goes down you don’t lose and when it goes up you make money. And that money you make can be in a tax-free environment.

Learn the index lock-in and reset strategies and shift your thinking away from trying to time the market.

Over a five-year period you should have a 50 percent increase in your retirement savings. If this isn’t the case, if you are down or barely even, this may not be the effective strategy that so many have been sold on.

Meet with a Missed Fortune strategist to learn how you can win the financial war.

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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Where Can I Put My Money Where I Won’t Lose, But Still Enjoy a Good Rate of Return?

January 28, 2010

Traditional financial planning usually offers investors two choices: 1) guarantees with little upside potential, or 2) upside potential with no guarantees.

profitgraph-300x299 Where Can I Put My Money Where I Wont Lose, But Still Enjoy a Good Rate of Return?I prefer to invest my money in safe investment vehicles that have guarantees and allow me to participate in any upside potential.

In a post 9/11 and financial-collapse world, it’s better to use a proven strategy than trying to time the market with investments.

The indexing strategy that I use for my own money works in all markets, it does not require market timing (buying and selling), and it allows me to sleep at night.

Product-Picking & Market-Timing are Horrible Strategies

Most advisors recommend you pick specific products to invest in. Product-picking focuses on the extremes of safety or return, leaves you constantly second-guessing, and it has now been proven not to work.

Therefore, it’s wiser to employ a sound and proven strategy rather than trying to just pick specific products to invest in.

For years I have been recommending that people place their serious cash (such as money earmarked for retirement or their home equity) and keep it in investments that are liquid, safe, and earn a tax-free rate of return.

Only ONE Cash Accumulation Vehicle Offers These 3 Benefits

I choose to put my serious cash in maximum-funded, tax-advantaged (MFTA) life insurance contracts because they are the only investment vehicles that, when properly structured and funded, allow an investor to:

  1. 1Accumulate money safely, tax-free
  2. Withdraw the money later tax-free
  3. Transfer money income-tax free at death.

This is allowed under Sections 72e, 7702 and 101 of the Internal Revenue Code as I teach in my books.

Indexing: Get the Gains with No Losses

For the last 12 years, I have used a strategy called “indexing.” With this, your principal is protected and you don’t lose when the market goes down.

When the market goes up, you are credited whatever the index of your choice earns (like the S&P 500 Index)—up to a cap—without your money actually at risk in the market. Based on what the S&P 500 actually did the last 25-30 years, an average annual crediting rate of 7-8 percent could have been realized.

Some investors who had $100,000 in the S&P 500 during the last 10 years saw their money grow, but then dissipate to $68,000 as of April of 2009.

Had they used indexing, they could have had an account value of $178,000.

With indexing, during a period wherein you experience a gain, that gain is locked in and the point at which you will be credited the growth for the next period is reset. This “lock-in and reset” strategy is what protects you from losses when the market goes down and also allows you to participate immediately in any upside potential when the market starts to head back up—substantially reducing risk.

Proper use of such indexing strategies can help you safely regain what you may have lost and protect yourself so that you never lose again.

Take Action Now

Right now we are seeing upward trends in the market, and a recovery of the financial system. Inventory depletion is also resulting in growth in the economy. But employment will continue to rise, housing prices will likely remain stable, and inflation is around the corner.

But I implore people not to wait for unemployment to rebound before taking action.

Using indexing strategies, many smart and safe savers may have experienced only a 1 percent gain on their money in 2008, but they have already experienced a 12-16 percent gain just last year.

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What is Indexing, & How is it Possible?

October 29, 2009

Guest Aaron Andrew joins Doug in this radio show to explain indexing, a strategy that allows investors to enjoy the upside of the market, while being protected from the downside. This is also referred to as the “lock in and reset” strategy.

Using innovative insurance contracts, client’s returns are linked to an investment index, such as the S&P 500 or the NASDAQ.

When the market goes up, you enjoy the upside up to a certain cap. Those gains are then locked in. When the market tanks, you don’t lose any of your previous gains.

Using this strategy, Missed Fortune clients have averaged about 8% annually over the last 5 years — despite the market’s devastating losses. Furthermore, these gains have been earned on a tax-free basis.

Isn’t it time for you to learn how you can benefit from this strategy?

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Increased Government Spending Equals Higher Taxes

September 6, 2009

Podcast: Download (23.0MB)

Missed Fortune RadioDid you miss this week’s show? Doug Andrew interviewed guest Aaron Andrew:

Most Americans believe that if GM can’t be profitable it should simply disappear.

If there is any single event that will hurt the current presidency it is the involvement of bailing out General Motors, a monstrous unprofitable organization that has been failing since the 1970s.

Survey after survey over the last six months shows that 70% of Americans are opposed to any government assistance to this corporation.

Over the past century Americans have seen hundreds of corporations that were listed on the Fortune 500 disappear.  The birth, growth, decline and death of large corporations is a natural fact of life.

Here are a few segments of Doug’s interview with guest Aaron Andrew:

What is the fundamental difference between what a traditional financial planner tells people to do and what you prescribe for your clients?

Most financial advisors tell people to put money in 401(k)s and IRAs.   Because we are an instant gratification society, we want the tax break today even though this only makes our tax situation worse during retirement.

Putting off taxes while this money continues to grow and compound only makes the tax problem greater down the road.  As the government continues to increase taxes to pay for increased government spending, money inside 401(k)s and IRAs will most likely have higher taxes when it is withdrawn.

What we do is help people have a tax-free retirement income so that half their money is not going to Uncle Sam.

Why have most traditional investments in IRAs and 401(k)s not been successful during the last decade?

With the huge downturn in the market from 2000 to 2002 people lost a ton of money.  Let’s work with an example of say $100,000.  When people have a 50% drop they only have $50,000 remaining.  They have to have a 100% return to get back to their original investment.

It’s going to take a long time to make that money back and with the recent downturn again in 08, investors have lost a lot of money again.

Why didn’t your clients suffer any loses this last year?

The financial products that we use provide safety so that when the market tanks our clients don’t lose a dime.  They have a floor and little risk because their money isn’t in the market.

This year with market picking back up they are on track for a 16% rate of return.  This is all part of a lock-in and reset strategy.

Attend our one hour event live with Guest Aaron Andrew over the internet this coming Tuesday, September 8th at 11:00 am and again at 6:30 pm Pacific: 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. Call 888-76-Radio (888-767-2346) 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 at www.babyboomerblunders.com

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Will the Stock Market Recover?

March 23, 2009

As of end of trading today, the Dow closed almost 500 points higher.  Fueled by news of the Treasury’s plan to buy up billions in bank assets, the markets responded in an unprecedented climb.

Is the market stabilizing?  Are we almost done with this roller coaster?

The reality is that nobody really knows but everyone hopes.  Although those following the Missed Fortune strategies have been mostly untouched in losing vast amounts of money this year, everyone has been effected in one way or another.

Almost everyone knows someone who has lost their job and/or gone through foreclosure and if you don’t, count yourself as one of the lucky ones.

What will it take to bounce back?  How many good years will it take to gain back the retirement and investment monies that were lost during this monumental crisis.

This article from USA Today takes the topic in depth.  Adam Shell writes that the stock market recovery will likely be years in the making.

Why?  Take a look at this chart which shows that to get back to break even by June 2012 you would need a 25% annualized rate of return or at a more realistic rate of return of 10%, were talking June 2017.

What’s the best solution to all of this mess?  Missed Fortune believes in keeping your principal safe.

Clients who have fixed rates are earning around 5% this year and those who have a more aggressive strategy and have their money tied to the market but not in the market have thoroughly enjoyed a 0-1% rate of return this year.

Remember that they locked in their gains from the year before, never having that money at risk.

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Are You Financially Paralyzed?

March 22, 2009

Podcast: Download (23.0MB)

Missed Fortune Radio

People are financially paralyzed right now. Are you feeling stuck? How to protect yourself from economic storms. Recession and bailout packages are going to make your taxes go up. How to accumulate, access and transfer your money tax free and safe. Right now people are more concerned about the return of their money instead of the return on their money. Learn about indexed insurance contracts that are maximum funded. When your money is in these contracts you sleep at night. All about indexing strategies. Lock in your gains and don’t lose your principal.

Free consultation and analysis with the Missed Fortune Firm. 888-987-5665. Get a free 60 page customized report and experience clarity and new direction. Call for your free copy of Millionaire by Thirty or Last Chance Millionaire.

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

New 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

See Doug Live: Saturday, April 4, 2009, 12:00 PM - 3:00 PM (Click here to register) Woodland Hills, CA

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What People Don’t Know About the Power of Wealth Preservation continued…

October 26, 2008

What if there were a better way?

What if rather than being left to panic when the market goes south, you could know that you are earning at least a 1, 2, or 3 percent guaranteed rate on your money when the market goes down — this way you don’t lose? And then when the market rebounds, you can immediately make money on the upside?

Let me share a personal story to show you how this is possible.

A couple of years ago, I separated an additional $200,000 of equity from my home through a mortgage. Even though market conditions have caused my house to go down in value by about $200,000 in the last year or so, I feel calm and in control.

Why? Because my equity is not trapped in my house. The $200,000 that I separated is safely earning an average return of about 8 percent, while the mortgage is only costing me 6 percent, and because the mortgage interest is tax-deductible, my net cost is only 4 percent in my tax bracket.

Hence, I am making twice as much in interest (8 percent) as the net interest I’m paying (4 percent) on $200,000 that would no longer be represented as equity if it still were trapped in my house (because of the market downturn).

I place my serious cash (home equity, retirement savings, children’s college funds, etc.) in maximum-funded tax-advantaged insurance contracts in order to maintain liquidity, safety of principal and earn a tax-favored rate of return.

I link the return (that the insurance company is contractually obligated to pay me) to an index, such as the S&P 500 index.

When the S&P goes up, I make money and lock in the gain. Then when the market goes down, I don’t lose — I still receive a 1, 2 or 3 percent guaranteed return.

Then after the market bottoms out and starts to go up again, my beginning point has been reset, so I can start making money again as the market starts to recover.

I don’t have to wait to arrive at a break even point.

To learn how this works and how to choose the safest place for your money, check my blog next week, and I’ll explain this incredible system of indexing in more detail.

Once you learn this, I assure you — you will sleep better at night, even during turbulent times.

Doug Andrew

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