Comments on: Missed Fortune 101 — Horrible Advice!

By: Roccy DeFrancesco

Roccy DeFrancesco — Thu, 11 Mar 2010 13:06:44 +0000

Go read http://www.www-missedfortune101.com and then let me know how wonderful doug’s book is.

it’s an E&O disaster for agents using the book. If I was still practicing law, I’d seek out clients who received advice based on MF101 and the book would be exhibit #1 in the lawsuits filed.

By: kirk

kirk — Tue, 09 Mar 2010 17:09:49 +0000

I just got my life insurance license and picked up this policy from a client who swears they did the right thing they read missed fortune. i’m not very educated in this field yet, so it’s a little hard to understand I have there policy i’ve been trying to figure it out. first of all there ages were 56 & 50 house completely paid off. after meeting with Andrews they took all there equity out of there house refie’d into an interest only. and they each lump sumed a flexible premium life insurance policy he’s lumped $255,000 and she lumped $155,000 into this policy, its been 5 yrs since they’ve owned it. like i said i’m new to this field but honestly how does this make sense.

By: mark

mark — Mon, 15 Feb 2010 01:45:56 +0000

why are indexed funds being pushed and not vul’s?

By: Roccy DeFrancesco

Roccy DeFrancesco — Mon, 01 Feb 2010 03:42:54 +0000

Jacob,

Go read http://www.www-missedfortune101.com and then let me know how wonderful doug’s book is.

it’s an E&O disaster for agents using the book. If I was still practicing law, I’d seek out clients who received advice based on MF101 and the book would be exhibit #1 in the lawsuits filed.

By: Jacob Proulx

Jacob Proulx — Wed, 27 Jan 2010 03:34:25 +0000

You know what really cracks me up is these so called professionals that think they know money and investing and how products effect a families over all financial welfare. If you are going to do a blog to bash a book you better give your viewers some math behind what you are saying. Know the tax laws and how your clients are becoming the perfect tax payers by you giving them bad advice. If you understood the effects of taxation and true compounding interest and how these Insurance contracts worked you wouldn’t be bashing Douglas’s book. Your clients will be the ones that ru out of money at retirement and get smashed with taxes when they can least afford it. Here’s some math for you so called professionals. If you put 6,000/year away into your 401k’s and IRA’s for 35 years you will save $70k in the form of tax savings in a 33% tax bracket, but if you retire to that same 33% tax bracket and need $50k to live on you have to take out 50% more just to pay the taxes due on the amount taken out. So you take out $75k to net $50k to live on and if you can sustain these tax hits for 20 years into retirement you will pay back old Uncle Sam $500k in taxes for your $70k in tax saving over the first 35 years. Now you wonder why our seniors are outliving their money. This is just the tip of the iceberg to what you don’t know and understand. So before you give your clients advice from your conventional wisdom run your own math correctly and prove him wrong. I would love to see that, oh so smart one with little knowledge. My clients never lose money, tey are in a safe truly compounding environment, and if they don’t reach their goal of retirement their families are taken care of. Life Insurance is a tool and your house is an asset period. Pay your house off then stop paying your property taxes, do you really own your house?

By: Roccy DeFrancesco

Roccy DeFrancesco — Wed, 09 Dec 2009 14:28:16 +0000

Using cash value life can be a terrific way to build wealth. However, you will not learn about how to do so correctly when reading MF 101.

go check out http://www.www-missedfortune101.com

roccy

By: John

John — Tue, 08 Dec 2009 02:30:29 +0000

I am curious why you dont recommend using Insurance as an investment strategy. Would it not be wise to have diversify and at least have part of your wealth growing in a tax favored environment that does not a have a contribution limit or the 59 1/2 rule? Not sure that the market was the best place to have your money in the last few years…

By: TRP

TRP — Thu, 06 Aug 2009 13:02:17 +0000

I happened upon this blog by just doing a search on “Missed Fortune”, and enjoyed reading the entire history of comments. Appreciate the diplomatic way that MBH handles his responses to some attacks.

I evaluate financial risk for a living, so was very curious to see how the tone of blogs would change from 2005 to the economic environment of today. Those 2005-2007 supporters of MF seemed to love the idea of leveraging their home equity to invest in real estate. Focus on the upside, and ignore the downside. Probably has been has been a painful lesson in the concept of leverage.

Missed Fortune concepts do have their place, but as many have alluded to, know what you are getting yourself in for.

By: guy

guy — Sun, 07 Jun 2009 18:09:25 +0000

Most comments are ignorant here. Roccy seems have a grasp.

By: tom

tom — Fri, 13 Feb 2009 21:10:07 +0000

I also forgot to mention that investing in the S&P 500 yields dividends that are not passed on to the customer.

And…

Any gains from this annuity are treated as ordinary income by the IRS. That is the highest tax rate. However, if you simply bought the Vanguard S&P 500 index fund, the gains and dividends are taxed at a lower capital gains and dividend rate. So, with an FIA, you covert low tax capital gain and dividend income income into high tax ordinary income. Doesn’t sound like a good deal.