Douglas Andrew is often called upon to explain his Laser method of securing wealth—liquidity, safety, and rate of return. In his experience, Douglas Andrew explains, maximum funded tax-advantaged life insurance contracts provide all three. It’s important that they be structured correctly, as outlined in Douglas Andrew’s Missed Fortune books and workshops. Douglas Andrew recently spoke to Presentation Solutions about the best way to structure policies.
Presentation Solutions: Explain what you mean by “maximum funded.”
Douglas Andrew: I like to use the analogy of a five-story building. If someone owns a five-story building, but only keeps the first couple of floors rented, that person may have trouble meeting his or her overhead.
Presentation Solutions: So the goal is to rent out all five floors.
Douglas Andrew: Which, in this case, would translate to funding your life insurance contract at the maximum amount allowed.
Presentation Solutions: But a person can’t do this all at once, right?
Douglas Andrew: Under the tax laws, the money must be built up gradually. The goal would be to rent out the first floor then, over time, the second floor and onto the third.
Presentation Solutions: How long should this process take?
Douglas Andrew: It depends on the person’s age, but by the fifth year, the person really starts to see results. I just tell our clients to be patient those first few years.
Presentation Solutions: What if someone is too old to take out a life insurance policy?
Douglas Andrew: I have clients in their sixties and seventies who do this.
Presentation Solutions: Do they have to take out a specific type of plan?
Douglas Andrew: My older clients often will take out a “second to die” or “survivorship” policy.
Presentation Solutions: Do all life insurance companies have these types of policies?
Douglas Andrew: No, only a select group of companies offer these. Missed Fortune helps clients find the best policy for them.
Presentation Solutions: What about your younger clients? Can they go through any life insurance company to do that?
Douglas Andrew: I always stress the importance of choosing the right financial advisor. Our wealth architects at Missed Fortune have a specific expertise in this type of funding.
Presentation Solutions: How can individuals learn more about maximum funded tax-advantaged life insurance contracts?
Douglas Andrew: The quickest approach is to meet with one of our wealth architects. Additionally, there are many resources, including videos, workshops, and educational materials. I would recommend someone visit the Missed Fortune website and go from there.
Douglas Andrew regularly conducts workshops in addition to his Missed Fortune books. For more information about Douglas Andrew and Missed Fortune, visit http://www.missedfortune.com.