Tag Archives: MissedFortune

Missed Fortune’s Douglas Andrew on Transferring Money Income Tax Free

Missed Fortune specializes in helping clients safely accumulate wealth with high rates of return. Founder Douglas Andrew helps Missed Fortune clients earn high returns using an approach he calls the Laser method of wealth accumulation—one that offers liquidity, safety, and a high rate of return. He also helps clients maximize tax advantages in both transferring and withdrawing funds from existing assets.

When transferring money and accumulating funds, Douglas Andrew names three common scenarios:

– Taxed as earned. Douglas Andrew says that while this is the most popular choice for many people, it is also the worst way to save and invest.
– Taxed sooner or later. Sooner would be a Roth IRA or 401K. Later would be a traditional IRA or 401K. The “later” option is for those wanting to defer the tax to a later date, when the taxpayer thinks he or she might be in a lower tax bracket, Douglas Andrew explains.
– Accumulate in an option that allows wealth to accumulate completely tax-free. With this option, the money can be accessed tax-free, says Douglas Andrew, and if the person dies, the money transfers tax-free.

However, as a financial specialist and tax strategist for 38 years, Missed Fortune’s Douglas Andrew has found one superior option that, under the current tax code, allows someone to accumulate wealth tax-free. When a person dies, the money not only transfers income tax-free under section 101(a) of the Internal Revenue Service tax code, but it increases significantly in value, according to Douglas Andrew.

This option is a maximum-funded life insurance contract. As Douglas Andrew outlines in the Missed Fortune educational materials and workshops, these insurance contracts must be structured to perform as a capital accumulation tool. However, according to Douglas Andrew, many financial advisors and even insurance agents aren’t aware of how to structure these contracts to perform this way.

In his Missed Fortune educational materials, Douglas Andrew talks about using compound interest to reduce the impact of tax on insurance contracts. Andrew cites Mayer Amschel Rothschild, named by Forbes magazine as the “founding father of international business,” as stating that one of the secrets to real wealth is compound interest in a tax-free environment.

Many people know that a dollar doubling every period for twenty periods will grow to $1,047,000. However, Douglas Andrew points out that the dollar only does that in a tax-favored environment. If that dollar were to double to two dollars, says Douglas Andrew, and a taxpayer had to pay tax on it of twenty-five percent, the gain would be reduced to $1.75 instead of double. It continues to decrease the gain each time a dollar grows, Douglas Andrew continues, and at the end of the twenty periods, instead of having $1 million, the total investment would amount to only $72,000. You could have saved more than a million, Douglas Andrew points out, and only $72,000 would remain after taxes.

Accordingly, Douglas Andrew and the team at Missed Fortune stress the benefits of putting money in an account that provides tax-fee growth and withdrawal. For more information, visit Missed Fortune online at www.missedfortune.com

Missed Fortune Cautions About the Future of Taxes

According to Missed Fortune founder Doug Andrew, tax changes over the past few decades have drastically changed the way people should plan for retirement. Now, as the Missed Fortune founder explains, there are six thresholds in place where individuals might have to pay out as much as 33%-45% of their income, when state and federal income taxes are both in place.

As Doug Andrew explains in the Missed Fortune series, the Congressional Budget Office is estimating that within the next two or three years, most middle income Americans will be paying about 29.6% more in income tax than they did just two or three years ago. The reason for this, says the founder of Missed Fortune, is twofold. Bush’s tax cuts are set to expire around the same time the tax legislation that has recently been put into place takes effect. But as Missed Fortune explains it, since the Bush tax cuts were some of the largest we’ve ever seen, it stands to reason that when they expire, they’ll be some of the largest increases we’ve ever seen.

It’s bad enough that many Americans will soon be paying out at least a third of their income to taxes, Andrew states in the Missed Fortune videos and workshops. But, according to Missed Fortune, because of the national debt and other issues many believe that one day we’ll be paying as much as half of our income to taxes. It’s even worse for those who make more than $200,000 each year. The goal, according to Missed Fortune ’s Andrew, is to eventually tax those incomes at 62.5%.

Obviously, these large taxes are out of the range of affordability for many Americans. Complicating this is the affects of inflation, says the Missed Fortune workshop leader. If the cost of living doubles in the next fifteen years, it will crunch even further into the funds that remain after a sizable chunk of a person’s income has been given over to taxes.

Andrew explains in the Missed Fortune materials that by putting your money into a tax-free vehicle, you can pull out any amount of your nest egg without paying taxes. The key, says Andrew, is to make sure it’s not deemed earned, passive, or portfolio income. According to the Missed Fortune materials, there are only three types of income that fall into a taxable income category: earned income, passive income (rents or leases), or portfolio income (interest or dividends). And Andrew emphasizes to his Missed Fortune readers and workshop attendees that IRAs and 401ks are classified under one of these three.

For four decades, Missed Fortune founder Doug Andrew has been pointing clients toward ways to realize income that is not deemed earned, passive, or portfolio income. The IRS is fully aware that the policy owners receive this income, but since it is not earned, passive, or portfolio income, it is not taxed. Doug Andrew details this further in the Missed Fortune workshops and educational materials. For more information, visit Missed Fortune online at www.missedfortune.com