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Missed Fortune – Taking Ownership Distinguishes the Adults from the Crying Infants

Posted on | November 27, 2011

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A Political Puff Piece or a Metaphor for Modern America?

A recent feel-good article in the San Francisco Chronicle illustrates the mindset of dependency held by many Americans.

“President Obama spent only a few hours in San Francisco, but he spent only a few seconds to prove why he is the baby-whisperer. Moments after landing at San Francisco International Airport on Air Force One, Obama spotted 6-month-old Josie Knight, who was crying while being held by her mother, Gina Odom, 37, of Oakland.

“It’s OK,” the president said repeatedly, taking the squalling infant into his arms. Obama bounced gently and held her for about 10 seconds before flashing a smile and returning her to Odom.”

This incident isn’t just a harmless human-interest story about a baby-kissing politician; it’s actually a metaphor.

ABC News, reporting on the speech said:

“At a million-dollar San Francisco fundraiser today, President Obama warned his recession-battered supporters that if he loses the 2012 election it could herald a new, painful era of self-reliance in America.”

Did you catch that? The only thing standing between us and having to rely on ourselves is the President.

Self-reliance used to be one of the distinguishing characteristics of an adult. You can’t be truly self-reliant until you are willing to take charge of your own future. This is especially true in financial matters.

If the objective of the president is to have the government provide everything for us, we’re setting ourselves up for failure on a grand scale. Government hasn’t paid off our mortgages, our kids college educations, or helped us get better jobs despite spending nearly $3.6 trillion in economic stimulus money.

If just 20% of that amount had been given to employers instead and they were allowed to hire the employees they chose to, it would have provided a $50,000 per year salary for two years for every single unemployed person in America.

Instead, we’ve seen the unemployment rate swell from 7.2% to 9/2%.

We need to get out of this mentality that big government needs to step in and take care of us. We need to take ownership in our future. Ownership has traditionally been the American way, but it appears to be falling from favor.

It doesn’t have to be this way.

Ownership Equals Power Over Your Financial Future

Even the IRS recognizes and incentivizes the value of taking ownership of your financial future. For instance, in section 163 of the Internal Revenue Code, you’ll find that the cheapest money you can borrow is that used for the purchase of a primary or secondary residence.

Right now you can borrow money at less than 4.5% interest for such a purchase and deduct interest up to $1,000,000 of acquisition indebtedness and $100,000 over and above that in equity indebtedness.

So if you borrow money at 4.5% and it’s deductible, in most people’s tax brackets, it’s only a net cost of about 3%. The government does this to incentivize people in order to make it easier to own a home. This is why the deduction has been in the tax code for decades.

Should Congress decide to do away with the tax deductibility of mortgage interest, it would be a huge discouragement to potential home-buyers.

Now consider what taking ownership means in terms of your retirement.

Our government is obligated to pay out nearly $115 trillion in unfunded liabilities over the next few decades. If you’re expecting government to be able to take care of you in your retirement, you’re likely in for a big disappointment.

The good news is that you can choose to take ownership of your financial future rather than expecting the federal government to pick you up and comfort you.

You can learn to re-direct, legally, otherwise payable taxes to causes you support by learning and applying the Missed Fortune strategies. By taking ownership, you become self reliant and you’ll do far better than you would by depending upon the government to meet all of your needs.

You’ll learn how to protect your retirement nest egg from the devastating triple whammy of rising taxes, growing inflation and continuing market volatility. Your serious money will enjoy liquidity, safety and a guaranteed rate of return all while accumulating and eventually transferring tax-free.

Are you ready to enjoy a greater sense of confidence and self-reliance in your financial future?

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

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