Missed Fortune 101 : A Starter Kit To Becoming A Millionaire by Douglas R Andrew

Missed Fortune 101 : A Starter Kit To Becoming A Millionaire by Douglas R Andrew

A comprehensive guide to achieving financial abundance – ready to unlock your wealth potential? This ground-breaking and thought-provoking resource boldly questions the fundamental principles of individual investment.

Miss Fortune 101: The Next Wave of Retirement Planning and Life Insurance

Hi, my name is Dan and at First Financial Securities, we’re excited to discuss a book called “Misfortune 101” by Douglas Andrews. This book explores the concept of indexed universal life (IUL) as both a retirement plan and life insurance policy, comparing it to other financial investments. We believe that the principles and products discussed in this book will revolutionize retirement planning and life insurance.

The Problem with Traditional Investments

In a section on page 226, Andrews compares the performance of an IUL policy to various alternative financial options. He uses the example of a 30-year-old male investing $500 per month until age 65, and then starting to withdraw $64,000 annually from the account at age 66.

What he finds is that investments like municipal bond funds, annuities, IRAs, and mutual funds all run out of money at various points in retirement, while an IUL policy continues to have a positive cash flow even at age 100. But why is this the case?

The Power of Triple Compound Interest

Unlike traditional investments, an IUL policy takes advantage of triple compound interest. This means that in addition to earning interest on the principal amount, it also earns interest on the interest itself, as well as the taxes that would have been paid each year.

For example, let’s say you have a 401k plan with $1 million in it at retirement. If you withdraw $100,000 per year, you start depleting the principal amount, and eventually run out of money. This is due to the rule of 72, where the interest rate determines how quickly your money doubles. Eventually, the principal amount diminishes to the point where the account runs dry.

However, with an IUL policy, you can take a personal loan against the cash value without depleting the principal. This allows the money to continue earning triple compound interest. Over time, the IUL policy can grow exponentially, turning a million dollars into two million, then four million, and so on. When you pass away, any remaining balance in the policy can be used to pay back the loans, with the rest transferred to your beneficiaries tax-free.

The Benefits of IUL as a Retirement Plan

In addition to its potential for wealth transfer, an IUL policy offers numerous other benefits as a retirement plan. It outlasts traditional investments because it doesn’t deplete the principal amount. Instead, the principal continues to compound every nine years, providing a stable and reliable source of income throughout retirement.

Furthermore, an IUL policy is not subject to income tax, making it even more advantageous. It also comes with a life insurance component, providing additional financial security for you and your loved ones.

If you’re interested in learning more about the benefits of an IUL policy and how it can shape your retirement plan, please visit our website or contact us for a free 15-minute consultation. We’re here to help you secure a prosperous future. Happy holidays!

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