From the category archives:

Retirement Plans

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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Finding the Light During this Economic Midnight

June 8, 2010

While signs the economy is rebounding continue to shoot up like flares in the night, for too many Americans, it’s still economic midnight.

Families continue to face short sales or foreclosure; those far from retirement continue to dip into 401(k)s and IRA(s) despite early withdrawal penalties; and unemployment continues to paralyze American workers.

A recent New York Times article showed that even though America is seeing an increase in hiring, the unemployment rate isn’t necessarily dropping.

Now many of them [the unemployed] are beginning to look for work again, encouraged by four consecutive months of job growth and reports of a strengthening economy.

But the initial return to the labor force may prove dispiriting, since so many people are already chasing too few jobs.

Because the government does not count people as unemployed unless they say they are actively searching for work, many discouraged people have been hiding in the shadows.

Heidi Shierholz, an economist at the Economic Policy Institute in Washington, estimates about 2.4 million “missing workers” either left the labor force or did not enter it in the last 28 months. That is on top of the 15.3 million people who are officially counted as unemployed.

What can be done to survive hard times?

While circumstances may take a while to change, at least we, personally, can start making changes immediately.

To begin with, we can learn from our mistakes.

As millions of Americans have seen, these times teach us to borrow to conserve, not to consume. How many people have fallen into credit trouble because when times were good, they used credit to buy furniture, cars, ATVs, boats…things they did not need but they wanted?

And millions of Americans have learned that saving for retirement means more than investing money in 401(k)s, IRA(s), stocks or other vehicles that are vulnerable to economic downturns.

Retirement savings vehicles like maximum-funded, tax-advantaged insurance contracts can provide liquidity, safety AND rate of return – which are all equally critical in retirement savings options.

Use these tough times – whether they’ve affected you directly or indirectly – to plan for the future and protect yourself. Find out now how to make wiser choices, and how to obtain True Wealth.

Isn’t It Time You Became Wealthy?®

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Retire the Rotten Repository

June 6, 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 8th 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.

401(k)s: A Horrible Way to Save

In October of last year Time magazine published a story entitled “Why It’s Time To Retire the 401(k).” The article reports:

“…the 401(k) is a lousy idea, a financial flop, a rotten repository for our retirement reserves. In the past two years, that has become all too clear. From the end of 2007 to the end of March 2009, the average 401(k) balance fell 31%, according to Fidelity. The accounts have rebounded, along with the rest of the market, but that’s little help for those who retired — or were forced to — during the recession. In a system in which one year’s gains build on the next, the disaster of 2008 will dent retirement savings long after the recession ends.”

401(k)s are poor investments for most people because they expose investors to market volatility. Investors have little control.

Worst of all, with tax deferral all you’re doing is delaying the inevitable taxes, and taxes will not be lower in the future.

It’s a myth that you’ll be in a lower tax bracket when you retire. Even if your income is less, you don’t have the tax deductions you used to have.

The following Fram oil filter television commercial illustrates this concept perfectly:

*If you’re reading this in an RSS reader or email, you may need to click the title of the post to view the video.

Stop delaying the inevitable. Make wise decisions to protect your nest egg from taxes.

Set up a free appointment with a Missed Fortune advisor to learn how you can access investments that offer tax-free growth, tax-free withdrawal, and tax-free transfer to heirs.

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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New Cap & Trade Bill Means Higher Taxes

May 23, 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 25th 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.

Congress Intent on Destroying the Middle Class

The Wall Street Journal recently published an article entitled “Just Don’t Call It a Climate Bill,” which reports:

“Despite the most creative rhetoric this side of ObamaCare, voters have figured out that ‘cap and trade’ involves artificial carbon rationing and vast new energy taxes. So the main goal of John Kerry and Joe Lieberman has been attempting to disguise these truths in the climate bill they released to much fanfare last week…

“The bill sets a 2020 target for reducing CO2 emissions by 17% from 2005 levels, and 83% by 2050…”

If this bill passes, fewer and fewer people will be able to purchase homes. You won’t be able to sell your home unless you retrofit it to meet the regulations.

The non-partisan Congressional Budget Office estimates the average cost of the bill for a family of four to be an extra $6,800 per year.

That will be the single largest tax increase this country has ever seen.

Take Charge of Your Taxes

It’s never been more critical for you to get the most deductions on your taxes. Unfortunately, few people know tax planning well enough.

For example, most people don’t claim enough withholdings, resulting in year-end refund. A tax refund is nothing but forced savings — the government kept your money without paying you interest.

Also, most people aren’t maximizing legitimate tax deductions. My CPA was once helping a financial advisor with his taxes. He asked the advisor, “If I save you money, will you pay me 25 percent of whatever I save you?” “Of course,” the advisor responded.

Within less than an hour, my CPA uncovered additional deductions that gave the advisor an additional $2,200 in his refund.

Tax increases will begin January 1, 2011. You need to convert your retirement plans into safer, more profitable savings vehicles while account values and taxes are lower.

Meet with a Missed Fortune advisor to learn how.

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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What Will the Government Nationalize Next?

May 9, 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 11th 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.

Next Up on the Government’s Nationalization Agenda

A crisis is unfolding with dire consequences, though few Americans are aware.

The harsh reality of national insolvency is forcing the government to look for new sources of revenue.

What’s the most logical source? You guessed it: qualified plans, meaning 401(k)s and IRAs, where Americans have saved more than $13 trillion.

Lee Bellinger, publisher of Independent Living, recently published a report entitled “40l(k)/IRA Nationalization Quietly Moves Forward.” His comments are just common sense:

“As the government’s finances continue to deteriorate, the White House and a powerful network of left-wing think-tanks, Congressional activists, and the highly-influential Ford and Rockefeller Foundations are engineering a new regulatory and tax-incentive drive to herd and ultimately force Americans to convert their 40l(k)s and IRAs into government-directed retirement accounts…

“…the extreme tactics used to ram health care nationalization down the country’s throat are a blueprint for what could be the biggest asset grab in history: the nationalization of private retirement accounts.”

It’s only a matter of time. In March of this year, the New York Times reported:

“This year, [Social Security] will pay out more in benefits than it receives in payroll taxes, an important threshold it was not expected to cross until at least 2016…”

Business Week reported that new federal regulations designed to “promote the conversion of 401(k) savings and Individual Retirement Accounts into annuities or other steady payment streams” would help drive cash into government-controlled entities such as American International Group (AIG), “the insurer that has received $182.3 billion in government aid.”

Bob Chapman of The International Forecaster explains,

“The looting of retirement plans is still in the planning stage, and you’re seeing these trial balloons go up.”

Bottom line: Major congressional overhaul of retirement plans — to your detriment — is something you should be planning for.

Roll ‘em Out!

In light of this crisis, the wisest, most logical decision for you may be a strategic rollout — to transfer your qualified plan funds into maximum-funded, tax-advantaged life insurance contracts, which provide the following benefits:

  1. Tax-free growth
  2. Tax-free and penalty-free withdrawal
  3. Tax-free transfer to heirs
  4. Guaranteed safety of principal
  5. Healthy returns that outpace inflation

If you think you’ll be in a lower tax bracket when you retire, you need to consider what the government is up to and think again.

Taxes will never be lower than they are today, and your dollars will never be worth more than they are today.

Escape the greedy clutches of government bureaucrats by meeting with a Missed Fortune advisor.

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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A Hard & Shocking Lesson in Taxes

May 6, 2010

Suppose you’ve retired and started withdrawing from your 401(k). You need $75,000 per year to live.

If you withdraw $75,000, you’ll only be able to spend $50,000 if you’re in a 33 percent tax bracket.

But what if you really need the full $75,000? How much more would you need to withdraw from your account?

Watch this video to find out the shocking answer:

*If you’re reading this in an RSS reader or email, you may need to click the title of the post to watch the video on the website.

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IRAs & 401(k)s are NOT Conservative Investments

May 4, 2010

Suppose you were to come to me and ask to borrow $100,000.

Just before endorsing the check you ask, “Doug, when do I need to pay you back? And What interest rate will you charge?”

I tell you I’ll decide when you need to pay me back, and I’ll decide the interest rate when I ask you to pay me back.

Would you endorse that check?

Of course not — yet millions of Americans do it every day. Watch this video to learn how.

*If you’re reading this in an RSS reader or email, you may need to click the title of the post to view the video on the website.

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Why Most People Never Become Wealthy

April 22, 2010

Only the top five percent of Americans arrive at the “Land of Peace and Abundance” where their money and their legacy will endure for generations.

They feel tremendous freedom because they understand how money works and the three secrets to becoming wealthy.

They don’t follow the crowd. They are “Thrivers.”

Their nest egg will easily generate $1 million dollars a year or more in predictable income that will provide for their needs and also allow them to contribute generously to their church, community and other causes they are passionate about.

mfdiagram-240x300 Why Most People Never Become WealthyThe missing structure that provides direction, confidence and capability for Strivers and helps them become Thrivers is revealed in a unique 8-Step process called “The Total Wealth Transformation.”

Through this process, you can learn about the fortunes people miss out on, because they simply don’t know what they don’t know.

Through proactive awareness, education and by taking ownership in your brighter future, you will be empowered to claim your own missed fortune as explained in the Missed Fortune book series, True Asset Optimization educational seminars, and Clarity Retreats.

We extend an invitation to your brighter future.

95 percent of Americans feel trapped and frustrated because they follow the same old, same old, traditional advice such as: “the best way to save for retirement is with IRAs and 401(k)s; or, “the best way to get out of debt is to send extra principal payments against your mortgage.”

These people are lucky if they accumulate a nest egg sufficient to generate $100,000 of annual retirement income that will last as long as they live. Unfortunately, most of these people will outlive their money.

They feel very frustrated and in captivity. These are the “Strivers.”

Ready to become a “Thriver”? Meet with a Missed Fortune advisor today.

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Retirement Savings Alternatives

April 15, 2010

At what pace do you want your money to grow? Would you prefer it to crawl, walk, jog, or sprint toward your retirement goal?

American taxpayers have these basic options for the pace of savings:

Crawling

  • Certificates of Deposit
  • Money Market Accounts

Walking

  • Non-Qualified Annuities

Jogging

  • Typical IRAs & 401(k)s

Running

  • Roth IRAs & 401(k)s

Sprinting

  • Maximum-Funded, Tax-Advantaged Life Insurance Contracts

How those savings are taxed makes a huge difference in the pace, and thus in the amount you wind up with for your golden years.

Whenever you work to earn money, it is subject to income taxation. When you put your money to work, you can structure a savings plan that is taxable, tax-deferred, or tax-free.

A Utah couple filing a joint tax-return, with a taxable income this year in excess of about $68,000 ($34,000 for single filers), will be in a 32 percent combined federal and state tax bracket.

If they put after-tax money in traditional savings and investments, they are using 68-cent dollars.

If they put money into qualified retirement accounts, the IRS allows them to use pre-tax dollars, or they get to deduct the contributions from their gross income. Thus, they are using 100-cent dollars.

When they save money in non-qualified CDs and Money Markets, they are using 68-cent dollars and the interest they earn is usually very low and it is tax-as-earned.

If this couple invests in non-qualified annuities, they are using 68-cent dollars to fund their account.

Their account may be tax-deferred, but when they withdraw their money it will be taxed LIFO (last-in, first-out) meaning all the interest they earned is the first money being withdrawn according to IRS rules, so it is 100% taxable unless they dip into their principal.

If this same couple invests money in traditional IRAs and 401(k)s, they are using 100-cent dollars to fund their account, but when they begin to withdraw their money during retirement, it is 100% taxable.

Therefore, they will be jogging toward retirement with the wind at their back at the beginning of the race only.

If they invest money into Roth IRAs and 401(k)s, they are using 68-cent dollars to fund their account, but when they begin to withdraw money during retirement, it is 100% tax-free.

Therefore, they will be jogging with the wind at their back (100-cent dollars) at the end of the race.

I feel the best solution to the retirement saving dilemma is a strategy that guarantees safety of principal while providing competitive rates of return. It provides liquidity and flexibility.

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

  1. Accumulate 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. Many indexed contracts have averaged 8% the last 3 years.

Ready to start sprinting towards retirement? Meet with a Missed Fortune advisor today.

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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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