Posted on | October 9, 2011
Is the Economy Half Empty or Half Full?
In a recent CNN article titled “90 Percent of Americans Say Economy Stinks” the following observations were made:
“Three years after a financial crisis pushed the country deep into recession, an overwhelming number of Americans – 90% – say that economic conditions remain poor.
The number, reported Friday in a new CNN/ORC International Poll, is the highest of Barack Obama’s presidency and a significant increase from the 81% who said conditions were poor in June.”
Now imagine that you came across an article that said, ” Ex-financial planner reveals the secrets as to how he protected himself from any losses during the last decade and what his wealthy clients did to become wealthy and to protect their wealth during the past several years.”
Would you want to know more?
If you’re familiar with the Missed Fortune Strategies, you already know that Doug Andrews is that ex-financial advisor turned consumer advocate.
The last 10 years are often referred to as the Lost Decade because most of the people who had their money in the stock market or real estate market lost more than 40% once in 2007 and again in 2008.
On the other hand, those who followed the Missed Fortune indexing strategies, didn’t lose a dime in the last decade. Many of them actually doubled their money tax-free even if they just sat there and never re-balanced during the past 10 years.
Those who did re-balance according to Doug’s advice enjoyed an average of 9.6% tax-free during the past 10 years. Let’s put that into something we can more easily visualize.
For every one million dollars they had 10 years ago they now have $2.6 million. For those taking income in retirement, they were able to take $8,000 per month or $96,000 a year, in tax-free income, without depleting their $1 million principal.
Even during the last 4 years, arguably the worst 4 year period since the Great Depression, people following Doug’s advice have realized an average 9.75% tax-free annual return.
The past two years have been incredible since Indexing strategies perform very well in a lateral market when in goes up and down with a lot of volatility. Folks who’ve found themselves paralyzed by fear the past few years, could have instead employed the indexing strategy to enjoy a nice conservative return of 4.5% up to an astonishing 15% return–tax free–without losing a dime of their money.
When we don’t know what we don’t know, our options remain limited. But when we’re willing to learn, new pathways are opened up to us.
3 Keys to Prosper In Any Economy
The strongest financial dangers we face in America over the next decade include taxes going up. The Congressional Budget Office warns that rates make climb as high as 62% for couples earning over $200,000 and single filers making over $100,000.
The second significant financial danger we face is the prospect of rising inflation. For the past 20 years inflation has averaged just under 3% annually, but it’s likely to rise to 5% on the low end to as high as 10% on the high end over the next 10 years. This means that the cost of living could be doubling every seven to ten years because the purchasing power of the dollar is being cut in half every seven to ten years.
The third financial danger to beware of is continued economic uncertainty which is the only one of the three dangers we’ve seen in abundance this past 10 years.
These financial dangers are likely to combine for an unforgettable triple whammy in the next decade, so let’s consider 3 proven strategies to eliminate these dangers.
- Analyze your situation and determine if it’s time to do a strategic roll-out. This means getting your money out of those 401(k)s and IRAs and recoup what you may have lost in a safe, tax-free environment. Move that money from tax-deferred vehicles into someplace where your money can accumulate tax-free, now and in the future. You’ll need to do this before the Bush tax cuts expire at the end of 2012.
- Link your returns, from here on out, to the things that inflate so that when we do experience higher inflation, it helps rather than hinders you. This principle works even when the inflation rate is in double digits just like it was in the early 1980s. Your money should be growing, tax-free, at a rate that outpaces inflation.
- The third strategy is to eliminate the downside risk while participating in any upside potential when the economy grows, by using indexing with a lock-in and reset feature. This means that when the economy goes down, you don’t lose money. Likewise, when the economy grows, you can make money. This is protecting your principal from loss. Any year that you make money, that gain becomes new principal that is also protected from loss.
Avoiding these dangers is absolutely possible once you’ve learned and implemented the Missed Fortune strategies. Get started by meeting with a Missed Fortune advisor.
*Life insurance policies are not investments and, accordingly, should not be purchased as an investment