Missed Fortune is an asset optimization strategy developed by financial planner Douglas Andrew. The series is based on the best-sellers Missed Fortune and Missed Fortune 101, where Douglas Andrew explains how prudent individuals can maximize rate of return while minimizing risk of loss.

Douglas Andrew Helps Clients Find the Right Companies and Products

Douglas AndrewDouglas Andrew is a respected financial strategist and author who has helped many with his asset management and optimization strategies. According to Douglas Andrew, successful wealth management largely relies upon finding the right company and product. There are many companies and products from which to choose and Douglas Andrew says that wealth is not a one-size-fits-all concept.

When a client visits a wealth architect at Missed Fortune, that architect will choose an approach that fits that particular client. As Douglas Andrew explains, Missed Fortune would use a different company and product for each person, based upon that person’s age, gender, health, and length of time that the person will be funding the contract.

Choosing the right company can be complicated, says Douglas Andrew, because a new indexed universal life company and/or product comes out every month. Douglas Andrew and the team at Missed Fortune keep an updated spreadsheet detailing the latest products. The wealth architects carefully researches the company on a wide variety of issues, including their track record, before recommending it to any clients.

The next issue, Douglas Andrew details, is how to get money out of a contract tax-free. There are several sections of the IRS tax code that address this. Section 72e discusses just how money in an insurance policy grows tax-deferred. Section 7702 allows you to take money out of your insurance policy tax free via policy loans.

For the purposes of this brief explanation, Douglas Andrew suggests focusing on section 7702, which says you can take money out via policy loans tax-free because loans aren’t deemed earned, passive, or portfolio income. These are the three types of income you report on your taxes, says Douglas Andrew, so it’s not taxable.

Douglas Andrew adds that because it’s life insurance, under section 101a, the money will blossom to a death benefit tax-free, as well. Douglas Andrew cautions that it’s very important to keep a life insurance policy in force until the day you pass away in order to keep this tax-free status. If you do away with the asset that was allowing this tax-free growth, your taxes will become due, Douglas Andrew adds.

According to Douglas Andrew, these factors are important to successfully maximizing benefits on a maximum funded tax-advantaged life insurance policy. By working with an experienced wealth architect like the team at Missed Fortune, Douglas Andrew believes that each individual can find the best solution for his or her own particular needs. In fact, using this plan, Douglas Andrew has found that he’s able to avoid losing a large chunk of earnings on taxes each year, while having his money remain safe. For more information, visit www.missedfortune.com

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