Missed Fortune (www.missedfortune.com) educates individuals regarding the Laser method of wealth planning—liquidity, safety, and rate of return, as well as tax benefits. Missed Fortune educates clients about how to enjoy healthy rates of return; keeping funds liquid so that they can access them when they need them. Today, Missed Fortune founder Douglas Andrew talks to Presentation Solutions about safety in wealth accumulation.
Presentation Solutions: Safety is a big concern for many individuals these days, with the current economic environment. Has Missed Fortune seen an increase in this concern?
Missed Fortune: Yes, and this is why we always make a point to address safety in Missed Fortune’s workshops and educational materials. For many of our clients, the primary concern is with the banks and financial institutions where money is parked.
Presentation Solutions: How does Missed Fortune help individuals create “predictability” in retirement and wealth planning?
Missed Fortune: In our Missed Fortune materials, we give the example of Dr. Edwards Deming, the total quality management engineer who transformed Japan into the quality exporter of electronics and automobiles it is today. Dr. Deming said management of anything in life is predictability.
Presentation Solutions: Including funds?
Missed Fortune: Yes. We have to create predictable safety in our financial institutions.
Presentation Solutions: There were many banks that didn’t survive the Great Depression.
Missed Fortune: Quite true; forty percent of banks never opened their doors again, as we mention in the Missed Fortune materials. Some real estate dropped as much as 80 percent. But there was one group that did not falter during the Great Depression – the life insurance industry.
Presentation Solutions: How could the insurance industry survive when so many banks failed?
Missed Fortune: The life insurance industry falls under very strict regulations set by legal reserve requirements that are far more stringent than those set for banks and financial institutions.
Presentation Solutions: Many of them were established in the 1800s.
Missed Fortune: Many banks and credit unions have as much as 30-40% of their tier one assets invested in insurance companies for liquidity and safety.
Presentation Solutions: That’s definitely very telling.
Missed Fortune: Insurance companies have a greater ability to provide liquidity for their customers.
Presentation Solutions: But insurance companies invest, too, don’t they?
Missed Fortune: Yes, often insurance companies will have as much as 70-80% of their general account portfolio invested in AAA and AA bonds. They might have 15-20% loaned out on property investments like skyscrapers and shopping malls. They also have 10-20% liquid.
Presentation Solutions: What if they have to foreclose on one of those properties?
Missed Fortune: They still come out with a huge profit.
Presentation Solutions: So what you are saying is that these life insurance companies are known for being safe…
Missed Fortune: Absolutely! In fact, they’re notorious for having that safety built in and being very smart with their funds.
To Douglas Andrew and the team at Missed Fortune, safety is a priority in wealth accumulation, just behind liquidity. Andrew shares his strategies in his workshops and educational materials, all available through his website, http://www.missedfortune.com.