Posts tagged as:

401(k)s

Government or Entrepreneurs

July 19, 2009

Podcast: Download (23.0MB)

Did you miss this week’s show? Doug Andrew discussed the following:

The economic system isn’t fragile like politicians think it is. Many politicians have never ran so much as a candy store and have no idea what free markets are all about.

Some economists believe that if significant institutions fail, the system will implode. The evidence points to the opposite conclusion. The financial system is robust and can deal with the failure!

The current situation needs leadership. Where is that leadership? Which sector of society is more likely to provide solutions and creativity? Government or Entrepreneurs? Is it the sector of entrenched inefficient wasteful bureaucracy or innovative resourceful entrepreneurs?

The goal of Missed Fortune radio is to give you clarity about how you can take proactive action to regain what you’ve lost and then protect yourself so that you never lose again. One way to make this happen is through a strategic roll out.

Attend our one hour event live over the internet this coming Tuesday, July 21st at 11 am or 6 pm: Don’t miss your chance to understand how to protect your money during this economic crisis and get competitive rates of returns 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 for either 11am or 6pm. You can register here to attend live over the internet.

Three choices for your money: 1) Fixed Rate Instruments – Your money is put into relatively conservative financial instruments that generally have lower rates of return. 2) Variable Products – These are products that allow you to have great returns of 20-30% during the good years but during economic hard times you can also lose 30% or more. 3) Indexed Products (the middle ground) – This type of financial product gives you returns that are greater than the rate of inflation during good years but keeps your money safe so you don’t lose a dime when the market goes down.

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

Tagged as: 401(k), 401(k)s, Doug Andrew, Entrepreneurs, Entrepreneurship, Government, IRAs, Max Funded Insurance, Missed Fortune Radio, strategic rollout

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Liquidity, Safety, and Rate of Return

July 12, 2009

Podcast: Download (23.0MB)

Did you miss this week’s show? Doug Andrew discussed the following:

Let’s talk today about what you should be doing to take ownership of your future. What are the three essential elements to any type of prudent investment?

#1 Liquidity – Can I get my money back when I want it? People get into trouble when they don’t have access to their own money.

#2 Safety – Is it guaranteed or insured? How safe is it? No matter what happens in the economy, is your money safe? Many people who invested in traditional conservative investments like 401(k)s and IRAs have learned this lesson the hard way. Use financial vehicles that protect your money during hard times. Our clients, who have followed the Missed Fortune strategies, haven’t lost any money during this recession.

#3 Rate of Return – People generally will give up a little safety for a little larger rate of return.

Three choices for your money: 1) Fixed Rate Instruments – Your money is put into relatively conservative financial instruments that generally have lower rates of return. 2) Variable Products – These are products that allow you to have great returns of 20-30% during the good years but during economic hard times you can also lose 30% or more. 3) Indexed Products (the middle ground) – This type of financial product gives you returns that are greater than the rate of inflation during good years but keeps your money safe so you don’t lose a dime when the market goes down.

Attend our three hour event live over the internet or in person in San Diego on Tuesday the 14th or Saturday the 18th: Don’t miss your chance to understand how to protect your money during this economic crisis and get competitive rates of returns 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 for either Tuesday’s or Saturday’s event. You can register here to attend live over the internet. Or, attend live in person if you are in the San Diego area (click here 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

Tagged as: 401(k), 401(k)s, Doug Andrew, IRA, IRAs, Liquidity, Missed Fortune Radio, Rates of Return, Safety of Principle

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Obama and Three Choices for Your Money

July 5, 2009

Podcast: Download (23.0MB)

Obama and Three Choices for Your Money

Did you miss this week’s show? Doug Andrew discussed the following:

Attend our one hour event live over the internet on Tuesday at 11:00 am or 6:00 pm Pacific: Don’t miss your chance to understand how to protect your money during this economic crisis and get competitive rates of returns 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 for either event on Tuesday. You can also register here on the web.

Rather than listening to what President Obama says, watch what he does over the next few months and the next couple of years. They are not congruent! As many politicians do, he says whatever he needs to say to appease the audience he is addressing. We’re in for a ten ring circus the next couple of years, with many more wild initiatives to come.

Take control and ownership of your future. Don’t rely on having the government provide your retirement or health care. It’s when we take ownership of anything that we take better care of it. When is the last time you washed a rental car? Do take better care of your home if you own it?

Three choices for your money: 1) Fixed Rate Instruments – Your money is put into relatively conservative financial instruments that generally have lower rates of return. 2) Variable Products – These are products that allow you to have great returns of 20-30% during the good years but during economic hard times you can also lose 30% or more. 3) Indexed Products (the middle ground) – This type of financial product gives you returns that are greater than the rate of inflation during good years but keeps your money safe so you don’t lose a dime when the market goes down.

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

Tagged as: 401(k), 401(k)s, Doug Andrew, Investing, Max Funded Insurance, Missed Fortune Radio, President Obama, Safety of Principle

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How Older Parents Can Assure Their Children a Secure Retirement

June 11, 2009

As an older parent (I’m now age 57), I’m grateful that my children still listen to their dad’s advice.

I’ve always counseled my children to prepare for the future financially by maximum-funding a tax-advantaged life insurance contract on themselves.

It’s the only investment vehicle that accumulates money tax-free, then allows you to access your money tax-free, and when you ultimately die, it even blossoms in value and transfers income-tax free.

No other investment does that. I own several universal life insurance contracts (both indexed and fixed), and I have received an average internal rate of return of 7-8 percent on most (that’s cash on cash -after the cost of the insurance is deducted).

Sure, some years I have only been credited the minimum guaranteed interest rate of 1, 2, 3 or 4 percent. But other years, I have earned as much as 21 percent, as the interest rate credited was linked to whatever the S&P 500 did that year — without my money at risk in the market.

Recently I’ve begun to teach my children they can take this strategy a step farther — and I can help.

Let me tell you of the advice that I’m now giving my children.

“Kids, what if I could tell you which two teams would be playing in the Super Bowl next year, and what the final score will be? While I can’t predict that, I can predict something else with fairly good accuracy: 80% of us will live to age 65; 60% to age 75; but only 30% to age 85; and less than 10% of us will live beyond age 90.”

Average life expectancy for a 60-yr old is about 22 years.

In facing the reality of the years I have left, I’ve come upon a revolutionary way to help my children assure their own financial security — especially down the road when I “check out.”

In doing the math, it became obvious that if my middle-age children were the owners and beneficiaries of a life insurance policy on my life for, let’s say $1 million, it would be better for them to deposit premiums of $500 a month into that policy, rather than into a Roth IRA or 401(k).

Why? Because an IRA or 401(k) would need to earn an average yearly rate of return of 9.4% for 30 years for $500 invested per month to grow to $1 million.

But, if I “go” anytime in the next 30 years or so, by using a life insurance policy, they would immediately receive a nice $1 million tax-free nest egg!

Hence, I’m insisting each of my children own a life insurance policy on my life as part of their overall retirement planning process.

The miracle of compound interest and tax-favored accumulation of money is great. But nothing beats the power of safe, positive leverage. I’m thrilled I can leverage my life to leave a legacy for my kids. You might consider the same.

Doug Andrew

photo by Leonid Mamchenkov

Tagged as: 401(k), 401(k)s, Death Benefit, Doug Andrew, Fixed Insurance, Indexed insurance, Max Funded Insurance, Parents, Retirement, Roth IRA, S&P, Secure Retirement, Universal Life Insurance

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Why Defer Taxes If Taxes Are Going Up?

June 7, 2009

Podcast: Download (22.9MB)

Why defer taxes if taxes are going up?

Did you miss this week’s show? Doug Andrew discussed some of the following topics:

I’m really concerned about the rate that the national debt is increasing. Two things are highly predictable: 1) Your money will never be worth more than it is today 2) Your current tax bracket is likely the lowest bracket you will ever be in.

If we know taxes are going up in the future, do you want to have a financial strategy that defers taxes? Qualified plans such as 401k(s) and IRAs defer taxes. Is that the right strategy for you?

An engineer who was in my office this week really gets it. He understands that a maximum funded insurance contract is a far better alternative. He is protected and doesn’t lose money when the market goes down but gets competitive rates of return when the market is going up.

Attend our event live over the internet on Tuesday June 9th: Don’t miss your chance to understand how to protect your money during this economic crisis but get competitive rate of returns 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 for either the 11am or 6pm Pacific session.

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

Tagged as: 401(k), 401(k)s, Doug Andrew, IRA, IRAs, Missed Fortune, Missed Fortune Radio, Qualified Plans, Taxes

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Some People Did Not Suffer Any Losses the Last 2 Years! Why?

June 5, 2009

Last week, I published an article explaining why IRAs and 401(k)s are proving not to be best for a secure retirement, with many people seeing up to 50 percent in losses on their accounts the last few years.

Recovering from losses can be tough when money is left in the market. Realize that when an account loses 50 percent of its value, the account has to experience a 100 percent gain just to get back to the break-even point. That could take years in this volatile economy.

This last April I took the opportunity to get in some spring skiing. Nearly everyone I sat with on the chair lift that day was from out of state, and while getting acquainted, most asked me what I did.

After telling them I was an author and financial strategist, they would say, “Oh, I’ll bet you’re having a tough go of it this year!” They were shocked when I said, “Actually, we’re having a great year, primarily because the people who followed the strategies that I explain in my books and on my radio show did not lose any money during the last two years!”

This is in contrast to people we’ve all heard about who have lost thousands, hundreds of thousands-even millions of dollars-in their traditional investments.

As an author, speaker and radio show host, I visit about 48 major cities each year. I have been overwhelmed by numerous people who have expressed gratitude for the advice they followed that protected them from suffering losses on their assets last year.

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.

I choose to put my serious cash in maximum-funded, tax-advantaged (MFTA) life insurance contracts because they are the only investments that, when properly structured and funded, allow an investor to: 1) accumulate money safely, tax-free, 2) withdraw the money later tax-free, and 3) transfer money tax-free at death.

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 (averaging 7 – 8 percent).

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

Proper use of such indexing strategies can help you get your future back!

Tagged as: 401(k), 401(k)s, Economic Crisis, Economy, indexing, Investing, Investments, IRA, IRAs, Maxiumum Funded Insurance, Maxiumum Funded Insurance Contract, MFTA, S&P, Taxes

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IRAs and 401(k)s Proving Not to Be Best for Secure Retirement

May 28, 2009

If you’re like many Americans, you may have seen 30, 40 or 50 percent losses on the value of your 401(k)s or IRAs in the last few years. But I predict the worst hit is yet to come-and it’s not what you think.

As it is, recovering from losses can be tough. For example, when an account loses 50 percent of its value, the account has to experience a 100 percent gain just to get back to the break even point.

Say you had $100,000 in a 401(k) two years ago that is now worth $50,000. Your account would need to double to get back to its original value. In this volatile economy, that could take years.

Also, retirement accounts that were once worth twice as much and generated interest income of 7, 8 or 9 percent, are now worth half as much and are only generating 2, 3 or 4 percent.

But that’s not all to be worried about.

Despite all the recent losses, I predict it will pale in comparison to the tax hit retirees will experience the day they begin withdrawing their money from their qualified retirement plans.

I had a school teacher who came to me several years ago for financial planning. She knew she would only be receiving 60 percent of the income she had when she was teaching (2 percent for every year of 30 years of service).

Thus, she had socked away money faithfully in the state’s 401(k), 403(b), and in tax sheltered annuities (TSAs) to supplement her retirement.

But when she retired, she found herself in the highest tax bracket she had ever been in, even though she was not working.

Why? Her house was paid off; she was not contributing to these accounts anymore; and she had no dependents. Her tax deductions were all gone.

On top of her pension and social security, at age 70½ she was forced to withdraw the minimum distribution from her tax-deferred accounts. Her taxable income was $80,000 a year, with hardly any deductions.

All that money she had saved in taxes during her 30 years of contributions-she essentially paid it back to Uncle Sam during the first two years of retirement, and every two years thereafter!

You see, the government has a permanent tax lien on your IRAs and 401(k)s.

One thing is certain: Future taxes will be going up. For this reason, I don’t own an IRA or 401(k)-never have, never will! There are better ways to save and have tax-free income in retirement.

If you’re feeling confused and powerless because your IRAs or 401(k)s lost 20-50 percent during the last couple of years, leaving you frustrated-even feeling paralyzed-there are safe strategies and solutions that will help you get unstuck and get your future back!

Doug Andrew

Photo by mujitra

Tagged as: 401(k), 401(k)s, financial planning, Investing, IRA, IRAs, Recession Proof, Retirement, Risk, Safety of Principle, Saftety, stock market, tax deductions

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“So, Just How Safe is Life Insurance?”

May 26, 2009

With investing being more uncertain today because of banks closing, businesses shutting their doors forever, and despicable investors like Bernie Madoff no wonder one of the most asked questions we get is, “How safe is life insurance?”

Even insurance giant AIG has given the insurance industry a black eye. Insurance is the backbone of our financial system. But don’t take our word for it.

We could go on and on about the merits and safety of life insurance. Instead, click on the articles below for third party comments and praises…

Time Magazine, How Safe is Your Insurance Company?

Financial Advisor Magazine, Insurance As An Investment

The Street.com, What You Need to Know About Your Insurer

CNBC, Investing in Life Insurance

San Francisco Chronicle, How safe is your insurance policy?

The Columbus Dispatch, Insurance safety net backed by companies

Set up an appointment with one of our advisors to find out more how you can keep your money safe! If you already have an advisor tell them to contact us to find out how they can make your money safer than ever before! Call Toll-free 888-987-5665.

Tagged as: 401(k), 401(k)s, Cash Value Insurance, Doug Andrew, Economic Crisis, Economy, Financial Strategy, Global Economy, Investing, IRA, IRAs, Liquidity, Max Funded Insurance, Missed Fortune, Rates of Return, Real Estate, Recession Proof, Retirement, Risk, Safety of Principle, Saftety, Scott Reynolds, Social Security, Taxes, Universal Life Insurance

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Is Your 401(k) now a 201(k)?

May 24, 2009

Podcast: Download (23.0MB)

Is Your 401(k) now a 201(k)?

Did you miss this week’s show? Doug Andrew discussed the following:

We have four goals for each of you listening to Missed Fortune Radio. 1) Increase your money supply. 2) Create more and better benefits for you. 3) Eliminate unnecessary tax. 4) Be able to do all of this without increasing your cash outlay one dime.

How many of you saw your qualified plans go down in value these last couple of years? These plans for retirement use investment vehicles such as 401(k)s, IRAs, 457s, pension plans, profit sharing, 403(b)s, and tax sheltered annuities. Many of these plans are now half the value that they once were.

Traditional financial planning is giving the same old advice and strategies that they always have and we all know the kind of “results” this advice has produced.

Attend our Weekly Internet Seminar/Webinar: Don’t miss your chance to understand how to protect your money during economic crisis but get competitive rate of returns 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 for either our 11am or 6pm Pacific event.

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

Tagged as: 401(k), 401(k)s, 403(b), 403(b)s, Doug Andrew, Financial Strategy, financial webinar, Government, indexing, internet seminar, Investing, IRA, IRAs, Max Funded Insurance, Missed Fortune Radio, Safety of Principle, Taxes, traditional financial planning, Universal Life Insurance

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Some People Did Not Suffer Any Losses

May 17, 2009

Podcast: Download (23.0MB)

Some People Did Not Suffer Any Losses the Last Two Years

We want to welcome new stations to Missed Fortune Radio:

KIOU in Shreveport LA, KLNG in Omaha NE WFAM in Augusta GA, WYYC in York PA, WNBY in Pensacola FL, WIJD in Mobile AL, WSKY in Ashville NC, KWDF Alexandria LA, WBXR in Huntsville AL, WCPC in Tupelo MS, WLMR in Chattanooga TN, KPRC in Houston, TX

Did you miss this week’s show? Doug Andrew discussed the following:

Recovering from losses can be tough when money is left in the market. Realize that when an account loses 50 percent of its value, the account has to experience a 100 percent gain just to get back to the break-even point. That could take years in this volatile economy.

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

Because of the overall response to our 3 hour seminar this last week held live in Salt Lake City, Utah and broadcast nationally over the web, we’re going to do an encore presentation this coming Tuesday, May 19th, from 5:30 PM – 8:30 PM Pacific

See Doug Live: Tuesday, May 19 in Salt Lake City, Utah 2009, . To attend by computer and phone (Click here to register). To attend live (Click here to register)

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

Tagged as: 401(k), 401(k)s, Cash Value Insurance, Doug Andrew, Life Insurance, Live Events, Max Funded Insurance, Maxiumum Funded Insurance Contract, Missed Fortune Radio, Risk, Safety of Principle, Saftety, Universal Life Insurance