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Missed Fortune – Taking the Risk Out of Growing Your Money

Posted on | July 3, 2011

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The Risks That Haven’t Paid Off

Wall Street has already lost more than 45% of investors money twice in just the last decade.  After 9/11 we had three significant down years.  And in 2008 people saw their IRAs and 401(k)s decrease an average of 31%.

As of First Quarter 2011, many people are just now starting to see a break-even point or a return to the ground they lost just a few years ago.  The people who followed the Missed Fortune strategies have received at least a 7.2% rate of return through those years, even if they were simply protecting themselves during the down years by not losing money.

They were positioned to participate indirectly in the up times and have doubled their money–tax free–in the past decade.

People who used “re-balancing” were able to earn even greater rates of return in the neighborhood of 9.62% during the past 10 years.  By contrast, the typical equity mutual fund investor who had his money in the market for the past 2o years earned a paltry average of 3.83%.

They’ve only outpaced inflation by a mere 1% per year.  When inflation goes up to 5% or 7.2% the cost of living doubles every 10 years.  Rowing against the current of inflation while keeping your money in the market is going to lead to a rude awakening for many investors.

The only reward that stock market investors have received for taking all that risk over the past four decades has been sleepless nights and broken dreams of retirement.

They’re losing ground at a time when no one can afford to give up an inch.

Protecting Your Money By Indexing

You must understand how to protect yourself so that when the economy is doing well you get to participate and when it’s not doing well you’re not losing your money. You don’t have to be subject to risk and losses in order to put your money to work.

By linking your serious money to the indexes of the S&P 500 or the Russell 2000 or other indexes you can participate in the growth of the markets without exposing it to the risks of market volatility.

If we go back 10 years ago, and you were starting out with $500,000.  If your money was in the market you could have used indexing to enjoy growth up to a certain cap. Say it was capped at 15% earning on AAA and AA bonds, your $500,000 would have remained intact during the down years that immediately followed 9/11 where the S&P dropped by 24%

You wouldn’t have earned much during those down years, but more importantly, you also wouldn’t have lost a dime of your principal.

As soon as the economy turned around your money would have started earning again immediately.  Better still, when your money is growing again, it’s accumulating tax free thanks to the way it was positioned in the first place.

Re-balancing requires occasionally moving your money depending upon what’s going in the U.S and the world.  But if you followed Missed Fortune indexing strategies that $500,000 you started out with would have grown to $1,315,000.

That equals a retroactive 9.6% rate of return compounded annually and it would have grown tax free if you used indexed Maximum Funded Tax Advantage alternatives to IRAs and 401(k)s.  This money would also transfer tax free to your heirs in the event of your death.

This is far superior to the tax hit you take when you start pulling money out of your 401(k) or IRA.  But to protect your money from higher taxes, inflation and market volatility, you must know and use the Missed Fortune strategies.

Learn how to put these strategies to work for you. Talk to a Missed Fortune advisor today.

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*Life insurance policies are not investments and, accordingly, should not be purchased as an investment

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