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Missed Fortune – Ask the Right Questions To Get the Right Answers

Posted on | December 11, 2011

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Missed Fortune Retirement Questions for Business Owners

Many business owners are feeling frustrated because of the economic uncertainty of the past 10 years.  The so-called “Lost Decade” has cost many folks nearly 40% of their retirement nest egg due to market volatility.

Following 9/11, the economy declined for 3 consecutive years before it started to regain traction.  By 2007 those with money in the market had begun to break even with where they were prior to September 2001.

Of course, in 2008 the market took another 40% drop and it was back to square one for those investors.

Business owners who were recently taught the Missed Fortune strategies were intrigued to see proof that investors who followed these indexing strategies throughout the Lost Decade actually doubled their money.  That’s quite a contrast to those who have been struggling to regain lost ground for the past 10 years.

When asked to elaborate on their frustrations, these business owners pointed first to the market volatility as a primary source of irritation.  They also pointed to concerns about taxes going up as well as the likely effects of inflation.

Next the business owners were asked how long this trend had been going on.  Some answered that they’d been staying the course in their IRAs or 401(k)s for 15-20 years at the behest of their CPA, attorney or other financial advisor.

One of the classic definitions of insanity is to do the same thing over and over while expecting a different result.

The third question asked of these business owners was what they had tried in order to remedy their situation.  Often they would reply that they tried to protect themselves and their money from further losses by putting it into a bank account that yielded 1% interest and where there was zero upside potential when the market grew.

Often they would dive right back into tax-deferred accounts again thinking that they’d see a return of the days of average 12% returns like their financial advisors spoke of in glowing terms.

But it hasn’t happened.  According to DALBAR, most people actually averaged 3.83% because they tended to buy & sell at the wrong times.  By contrast, the Missed Fortune indexing strategies have averaged around 8.2% percent rate of return in a safer, more conservative environment and it’s tax-free.

The next question for the business owners was “how much is this costing you?”

If the $100,000 you started out with could have grown to $500,000 but instead is sitting at just $200,000 thanks to taxes, inflation or market volatility, the missed opportunity has cost you $300,000.

The final question was, “if you go another year and you don’t change what you’re currently doing, how are you going to feel?”  This question cuts right to the heart of the matter because there are proven ways to grow your money safely regardless of what the economy is doing.

Missed Fortune strategies have a proven track record of eliminating the concerns and making this happen.

10 Lies About Money

Doug Andrews is currently collaborating with Tony Robbins on a book about the 10 greatest lies about money and finance.  Their goal is to help people take ownership of their financial future.

Among the top ten lies about money that people believe:

  1. Government knows best and will take care of us in the future.  The truth is that we always take better care of anything in which we take ownership.
  2. Putting money in tax-deferred investments using pre-tax dollars is the best way to save for retirement.  This is far from the best way to save for the future.
  3. You’ll be in a lower tax bracket in the future.  A lot of people who’ve built up a nest egg with tax-deferred funds have found out the hard way that Uncle Same takes a big bite the moment they start to withdraw that money.
  4. You can average a rate of return of 12% by putting your money in the market.  Actually, the average return for the past 12 years has only been 3.83%.
  5. Real estate investments & equity pass the Liquidity, Safety & Rate of Return (LASER) test.  This is not accomplished by sending extra principal payments to the mortgage company like so many advisors will tell you.
  6. You should buy term insurance and invest the difference.  Instead you can accumulate money tax-free and far outpace the buy-term-invest-the-difference approach.
  7. You can structure a life insurance contract to perform as a superior investment vehicle.  Unless the insurance contract is 100% structured correctly, you will fail in this strategy.
  8. You should buy and hold.  That myth simply hasn’t worked.
  9. Your IRA and 401(k) are your money.  Actually, 33-50% of that money belongs to the government in the form of taxes.
  10. Leverage or debt is bad.  By learning to become your own banker you can turn this lie on its head just as the thrivers of the world have done for generations.

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

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