Missed Fortune’s Douglas Andrew on Predictable Rates of Return
Indexing is in, says Douglas Andrew, and it provides predictable, worry free returns.
Salt Lake City, Utah – August 17, 2012 – Douglas Andrew, founder of Paramount Financial Services and creator of the popular Missed Fortune Asset Optimization program, announces that investors of the 2000-2010 decade have an alternative to traditional financial planning. Douglas Andrew offers the advice that this financial strategy comes in the form of indexing.
According to Douglas Andrew, creating predictable rates of return in the most unpredictable of economies isn’t as difficult as many are led to believe. Even those who lost a huge chunk of their nest egg in 2003 and 2008, when many retiree hopefuls lost nearly 40%, can capture reliable returns. Many individuals got scared at that time, says Douglas Andrew, and moved their money to a traditional bank account.
Douglas Andrew points out that the pitfall to this financial transition is the amount of interest earned on the funds. Looking at a retirement fund of $1 million, Douglas Andrew illustrates the difference by pointing out that, in a previous earning situation, the account owner was netting a $6,000 gain per month. This is assuming a very reasonable 6 percent. After moving these funds to a savings account at a traditional banking institution, the returns equal a mere $6,000 per year – a $66,000 per year difference.
The lost decade, which according to Douglas Andrew is the years between 2000 and 2010, had two of the hardest hit years in recent history. 2003 and 2008 both saw losses of 40% in the market. The reason Douglas Andrew refers to the 2000s as the lost decade is because many investors are ending the decade where they started, with no growth. It took the entire time frame just to break even.
Even in that time, however, as America’s stock markets were tanking, Douglas Andrew points out that properly structured indexed universal life enjoyed gains of 7.23%. Indexing, through maximum funded tax-advantaged life insurance, is a safe way to optimize assets, says this retirement expert. Since indexing is basically a measuring stick to monitor the positive aspects of the market, they don’t suffer the same losses. According to Douglas Andrew, maximum funded tax-advantaged life insurance performs quite well without putting the principal or prior gains at risk. It is a very safe environment.
At Paramount Financial Services, Douglas Andrew utilizes the multi-trillion insurance industry that earns predictable rates. Insurance institutions ranked higher than banks and credit unions in overall stability over the last hundred years, points out Douglas Andrew.
Douglas Andrew claims that individuals can utilize insurance indexing even in a down period since these policies do not lose value due to market downturns. He does caution that they are not a miracle fund and may have years where they do not gain but they will never lose value.
Douglas Andrew is a Salt Lake City, Utah, retirement planning expert with over 30 years of experience. He is the founder and owner of Paramount Financial. For more information contact Douglas Andrew at 888.897.5665 | www.missedfortune.com