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Missed Fortune – Finding Your Defining Moments

Posted on | October 21, 2013

Life’s Defining Moments

The biggest problem that we have right now in America is the massive national debt. Our government incurs $3.6 billion in new debt every single day. That’s $150 million every hour or $2.5 million per minute.

We cannot keep sustaining this level of spending. Government has been covering this by printing money day and night and inflation is just around the corner. We’ve had plenty of warning.

Now it’s essential that each of us do what is necessary to protect ourselves against the effects of this continuing gargantuan national debt. Those effects include higher taxes, inflation, market volatility, and economic uncertainty.

To face them down successfully, we have to be willing to learn how to separate belief from truth in our lives. A belief is simply a belief, but when we actually experience something for ourselves—it becomes a truth to us.

This means that each of us must be willing to seek out the defining moments in our lives. It means discovering truths that may require us to stop following the crowd. It’s very difficult to live a truly abundant life if we’re not willing to seek out and incorporate truth.

Doug speaks of an experience he had back in 1982 when he chose to give up his Series 1 securities license. At the time he had over 3,000 clients invested and diversified in various mutual funds. Many of his clients were earning an average rate of return of around 12%.

But Doug had a huge epiphany that changed how believed. He realized that even if his clients were earning a 12% rate of return, they still stood to lose roughly a third of their savings to taxes, even if they were using tax-deferred vehicles.

This meant that the effective net rate of return, after taxes and fees, was actually closer to 7% at the end of the day.

He knew there had to be a better way.

New Truth Brings Calmness

Doug found that by bringing those 3,000 clients into investments that were tax-free, better diversified, and no longer directly at risk in the market, they prospered.

The result? His clients were never happier and he was never happier as well.

It was through defining moments like this that he began to understand that the most important aspects of prudent investing are liquidity, safety, and predictable rates of return.

Liquidity is the ability to access your money when you need it, whether it be with a phone call or an electronic funds transfer.

Safety means safety of principal. Not just safety of the institutions, but also safety of the money you set aside as your serious cash. This means the money you set aside for your retirement, your future, your children, or even your grandchildren.

It means that even if the stock market or real estate market goes down, you do not lose your principal.

There’s an expanded definition of safety that also comes into play in which any year that you make money, that money becomes newly protected principal that is not subject to loss again.

Earning predictable rates of return that are equal or greater than the existing rate of inflation at the time is also an essential part of this approach. This can be accomplished by linking our returns to those things that inflate during inflationary times.

For example, back in the early 80’s when inflation was 10%, Doug was earning 15.5% on investments that were tax-free and not just tax-deferred.

Putting all of these elements together gives us the acronym LASER that stands for Liquid Assets Safely Earning Returns.

These are not just beliefs, but truths that are evident to the thousands of people who have learned the strategies and then put them to work.

If you’re ready for a defining moment in preparing for your brighter future, visit with a wealth architect today.

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

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