| |
 The 'Insider Secrets' To Success With...
The Missed Fortune Concept,
...Even In
Today's Troubled Economy
A
while back, Douglas Andrews wrote a book called ‘Missed
Fortune’ and it took the life insurance sales industry by
storm.
This book explains, in great detail and refines
in today’s terms, an extraordinary smart money management
concept that has been used by the wealthy for generations to
accumulate large sums of money.
Understanding the Basic
'Missed Fortune' Concept
The
premise is that many people have large amounts of equity
tied up in their home that is just sitting there doing
nothing.
The idea
is to harvest that stagnant home equity to over-fund a life
insurance policy up to the MEC guidelines. (The 7 Pay Test)
The goal is to make the life insurance policy, what they
call ‘Investment Grade Life
Insurance.’
The
over-funded life insurance policy can now be used as a
college funding vehicle, a non-regulated retirement plan, or
a family bank (The Infinite Banking Concept), while
providing families the valuable protection they need!
And, yes it still works today, (when done properly and
ethically) even with the problems with home mortgages and
shrinking home values.
Using this Missed Fortune concept, with the right tools and
training, insurance agents and financial advisors can help
families to:
-
Become debt free
-
Improve their cash flow
-
Reduce income taxes
-
Protect the people they love
-
Fund a college education for their children
-
Plus, have the retirement of their dreams
And, in many cases these families can do it all
without spending any additional money or changing their
current lifestyle.
When done properly, using the ‘Missed Fortune’
concept, advisors can dramatically enhance a family’s
situation almost overnight, without these families taking
extraordinary risks. In fact, as you’ll discover while
reading the book, by using this concept you are actually
helping families to significantly reduce the risk in their
financial lives.
How This Refined Smart Money Management Concept Works
In a nutshell, the flexibility of new,
innovative mortgage products have expanded over time and now
include products featuring ‘Interest Only’ payments rather
than the combined principal and interest payments of a
traditional mortgage.
These new products can help families to free up money
that they typically would have put toward the reduction of
their mortgage principal.
This freed up money can now be used to quickly reduce
or eliminate debt and create an safe investment plan for the future.
Accordingly, if
you could borrow out the equity in your home and make more
on that money than it’s costing you, aren’t you much better off?
The ‘Missed Fortune’ book
recommends you refinance your home to remove as much equity
as you can.
They recommend using an
interest only mortgage loan, which in many cases would mean
your total mortgage payment would be less than you are
paying today.
Then you invest your home
equity into an ‘Investment Grade Life Insurance Policy.’
(Note the
cautions
below)
A simplistic
example:
If you have $100,000 of equity in
your home and you could borrow it out using a
4% interest
only loan,
it would cost you about $4,000 per year.
If you can write-off the
interest on your income taxes, then your net cost for the
loan is about $3,000 per year.
In thirty years, your total
after tax payments would equal $90,000.
If you invest the $100,000 into an
investment grade life insurance policy and you earned 4.8%
after expenses, tax deferred, in thirty years you would have $400,000.
If you then paid
off the original $100,000 mortgage on the home, you would
have $300,000 left in the life insurance policy to generate
a tax-free income.
In effect, you’ve spent
$90,000 to make $300,000.
Caution
We believe there are some debatable
mathematics, and inaccuracies in the Missed Fortune book.
And, there are also some
questions about the validity of writing off the mortgage
interest, if you put the home equity into a tax deferred vehicle
or life insurance.
However, whether
or you can write off the interest or not, the overall
concept is still very valid.
And, when done properly, the
‘Missed Fortune’ concept can help many people to accumulate
exceptional wealth.
(In the above example, even if
you can’t write-off the interest, you would spend $120,000
to make $300,000)
Extreme Caution
We believe this approach can be used
to help many people.
However, when taken to
extremes it can also cause serious financial harm.
They only time you should use
any type of Adjustable
Rate Mortgage is when you are able to put the
difference in payments, between a conventional fixed rate
mortgage and the adjustable rate mortgage,
away each month!
People must have the
money, from existing income, to cover any increase in the
adjustable rate mortgage payments, when mortgage interest
rates rise.
Using Home Ownership As A Strategic Investment
In a recent
Morgan Stanley
article, they state: “The decision to invest in a home is
not only a practical decision in terms of meeting lifestyle
and family needs, it can also serve as a means of
accumulating wealth through property appreciation. Additionally, the favorable tax treatments of mortgage
interest and capital gains have made home ownership a
strategic investment decision.
Along with the deductibility of mortgage interest and
the special treatment of capital gains, there are unique
benefits associated with leveraging an investment that is a
relatively stable asset.
The wealth accumulation benefits associated with a
tax-advantaged, highly leveraged purchase, such as a home
mortgage, can be substantial.
Thus, a properly financed home can enhance an
individual's overall investment strategy.”
The
Investment Plan For The Future
In order to take advantage of the unique benefits of
leveraging a home, you need to guarantee that you are not
putting the client’s home at risk.
The new and old unique features of fixed cash value
life insurance make them the investment product of choice.
Consider cash value life insurance can be over-funded
up to the MEC guidelines giving clients an opportunity to
receive solid investment returns, while protecting their
family by repaying the mortgage in the event of death.
In addition, the money inside life insurance grows
tax deferred and generally can be taken out tax-free.
The ‘Missed Fortune Concept’ Isn’t New...
Harvesting home equity and investing it into a conservative,
safe investment vehicle isn’t a new concept.
It’s a time tested, proven concept the wealthy have
used for generations to keep their money liquid, so they can
take advantage of investment opportunities as they come
along. It’s
what has enabled the wealthy to accumulate vast fortunes
even during the stock market crashes, recessions and the
‘Great Depression!’
The
key to making ‘Equity Harvesting’ work for you, is selecting
the right type of home mortgage for your situation and
your comfort zone.
You want a mortgage with the lowest interest rates
and fees you can find and you are comfortable with.
Then it’s selecting a competitive cash value life
insurance policy.
You don’t choose a life insurance policy based solely
on current company illustrations.
You’ll want to find a company that has solid
financial rating and a proven, documented long-term history
of above average product performance.
‘Equity Harvesting’, when done properly, is truly an
invaluable financial concept when it comes to accumulating
wealth.
However, it doesn’t stop there.
Use your home equity to reduce and eliminate your
debt. You’ll
free up your current income, so you are able to put even
more money away.
And, you’ll be on the way to securing the financial
future you have always dreamed of for you and your family!
I’ve been personally using and training agents to use this safe money concept for over 27 years.
And, it works!
Why Use Cash Value Life
Insurance?
The reason you use an overfunded cash
value
life insurance policy is that it offers several unique benefits, the
other investment vehicles don’t offer...
-
It builds a
liquid cash reserve of safe
money. Generally, it can be accessed within 5 to
10 business days.
-
Cash Value Life Insurance guarantees your investment
principle, and offers you minimum growth guarantees for
the life of the contract.
-
You can put in
as much money as you want... limited only by the size of
the life insurance policy, which you can make as large as
you need. (Not so, with qualified plans)
-
All of the
money you put into a cash value life insurance policy
builds tax-deferred. You avoid paying income taxes
every year, so your money builds faster.
-
You can borrow
the money from the policy tax free, without having to
qualify for the loan and without contractual withdrawal
penalties.
-
There are no
early withdrawal penalties from the Federal Government.
(Not so, with qualified plans or annuities)
-
In some
policies the loans
against the policy come from the general assets of the
insurance company, and not from the policy cash values.
In many cases, you can actually be earning more on your
money than the loan is costing you.
-
The policy is
self-completing, because you have a disability waiver of
premium rider that will continue to put the money in for
you, if you ever become disabled. (Only life
insurance offers this unique benefit)
-
Life insurance
provides a death benefit that gives your family the
money you intended to save; in the event you can’t be
there.
-
In most states, life insurance is not
attachable by creditors.
-
Life insurance
cash values don’t count as an asset when applying for
college financial aid.
The Problems With
Using The
‘Missed Fortune
Concept’
With Your Prospects...
There are several problems that most
agents struggle with, using the ‘Missed Fortune Concept’…
-
The first problem is finding and
attracting the people who have equity in their home and
have a good credit score. The
prospects must be willing and able to refinance their
home or take out a 'Home Equity Line Of Credit.'
Unfortunately, this severely limits the amount of
prospects available to you.
-
They'll tell
you the ‘Missed Fortune Concept’
only works with a good indexed universal life policy!
(Possibly, because they
want to recruit you to sell their products.) The
truth is, this concept works equally well with a good
participating Whole Life Policy. (And,
it has more
guarantees)
-
The ‘Missed Fortune Concept’ is
just a sales strategy, to be used once you are in front
of the 'right' prospects. It is not really a marketing or
lead generation program to attract the right prospects to you.
-
Most of the organizations that are
promoting and training agents on the
Missed Fortune Concept
are
charging $4,000 or more upfront, plus an annual fee, and they want you to
contract with their companies. (with reduced
commissions.)
The Secrets To Making The Concept Work
For You...
The beauty of the
‘Missed Fortune Concept’
is that with some small
modifications, and the right training, almost everyone can use this concept... to
truly help their prospects.
As stated earlier,
the Missed Fortune idea is to remove as much equity as you
can and funnel it into a good cash value life
insurance policy. (Participating Whole Life or Universal
Life) However, even if they don't have large amount of
equity or any equity, you can still help them to improve
their financial position, start saving for the future and make a
sale.
You can help them do that by:
-
Helping them to first eliminate their
debt. Can you show them the logic behind
refinancing their home for as long as they can, or
taking out an home equity loan to pay off any debts, to
free up those monthly payments, to funnel into a life insurance
policy?
-
Showing them how and why to increase
all their deductibles and delete any unnecessary riders
on their existing insurance policies. Do they have
any unneeded policies? Can they use their
dividends to reduce or eliminate their debt,
to free up those monthly payments, to funnel into a life
insurance policy?
-
Stopping the
contributions to all their qualified plans, except for
any amounts that are being matched by their employers,
and
funnel that money into a life insurance policy?
-
Finally, can
you help them look for other ways to cut their expenses?
Can they get a better long distance carrier for their
phone service, etc.?
Learn the Missed
Fortune Concept. Use it yourself. Then, help
your prospects to ‘Find The
Money’ to implement the
concept to reduce (or eliminate) debt and start saving for their future.
They’ll
be your clients for life... And, you’ll get tons of
referrals!
Attracting The Right Prospects To You...
We highly recommend you read and study
'Missed Fortune.'
And, then take a look at our
Found Money Management™
Advanced Life Insurance Sales System
(below)
and our 'Trusted Advisor Success Training'.
Using
our Found Money
Management™
program,
with our training, within
30 to 60 days
you’ll be attracting more of the right
prospects, and be selling much larger cash value life
insurance policies. (Participating whole life or universal
life)
And, you'll be
really helping your prospects to 'Live Debt Free and
Truly Wealthy!' You'll be putting them on the
road to true financial freedom!
We’ve been using and training agents on
variations of the ‘Missed Fortune Concept’ for over 27 years to help
prospects qualify for college financial aid, reduce debt and
accumulate great wealth.
And, you can too...
Yours in Success,
Lew & Jeremy Nason
The Nine Out Of Ten Guys
| |
