create your own economic stimulus plan

8/3/2019 Create Your Own Economic Stimulus Plan

1/25

Create Your Own

Economic Stimulus PlanSave Yoursel, Because Big Government Cant

by Douglas R. anDRew

2010 by Douglas R. Andrew

www.missedfortune.com


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Create Your Own Economic Stimulus PlanSave Yoursel, Because Big Government Cant

2010 D R. adr

.midrt.cm

e-bk Di: Ti lck / [email protected]

Cpriht hdr i ici thi dr th Crtiv Cmm lic, attriti 3.0.

http://crtivcmm.r/ic//3.0//

You are ree:

T hr t cp, ditrit, dip, d prrm th rk t Rmix t mk drivtiv rk

udr th i cditi:

Attribution. y mt ttrit th rk i th mr pcid th thr r icr

(t t i tht t tht th dr r r th rk).

Attribute this work:

wht d attrit thi rk m? Th p cm rm ctid mddd ici mtdt,icdi h th crtr ih t ttritd r r-. y c th HTMl hr t cit th rk.

Di i icd mtdt r p tht thr c d th rii rk . Fr

r r ditriti, mt mk cr t thr th ic trm thi rk. Th t t d thi i

ith ik t thi p.

a th v cditi c ivd i t prmii rm th cpriht hdr.

aprt rm th rmix riht rtd dr thi ic, thi i thi ic impir r rtrict th

thr mr riht.

Please eel ree to post this on your blog

or email it to whomever you believe

would beneft rom reading it.

Thank You!


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CreateYourOwn

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Ways to ConnectChck t D adr ppr :

www.missedortuneblog.com

T i t D k rdi rdct:

www.missedortuneradio.com

scri t D rdi pdct:

http://eeds.eedburner.com/missedortuneradio

gt mr dcti m, tx, irc d th cm:

www.becomewealthy.ino

Dd rchr t Crit Rtrt hich r did t hp impmt

th Mid Frt Tt wth Trrmti iq prc i i-chi kd:

http://clarityretreat.becomewealthy.ino

Contact us by phone toll-ree: 1-888-987-5665

Prmt Fici srvic, Ic.Hm Mid Frt

6340 s. 3000 e. sit 280, st lk Cit, uT 84121

More books by Douglas R. Andrew

Missed Fortune:Dispel the Money Myth-Conceptions

Isnt It Time You Became Wealthy?

Missed Fortune 101:A Starter Kit to Becoming a Millionaire

Last Chance Millionaire:Its Not Too Late to Become Wealthy

Missed Fortune 101 (Spanish)No Pierdas tu Fortuna: La Gua Inicial para

Convertirte en Millonario

Millionaire by Thirty:The Quickest Path to Early Financial Independence


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Table o Contents

Perorm Your Own CPR 1

Our Ship Is Taking on Water 2

Stimulus Point #1:Improve Your Credit Score 6

Stimulus Point #2:Learn How to Leverage OPM

Stimulus Point #3:Forget the 401(k) and IRAThere Are Better Options 10

Stimulus Point #4:Uncle Sam Should RewardNot PenalizePeople or Investing 12

Stimulus Point #5:Exchange our Complicated Tax System or a National Flat Tax& Consumption Tax 14

Stimulus Point #6:Separation o [Economy] and State 16

Find Your Own Solid Ground 18

Authors Note 19

Douglas R Andrew 19


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Perorm Your Own CPRwith th cm tki it mt hitric div th pt cp r, thr

h hrd h ht t th impct th dri. whthr r

i r tt, hih tch, ci rvic, th rtr v dich-mkith ripp

ct h mr ik hirp r m amric.

wh tppi i t v th d? wh i t prrm mrc rcitti? I thvrmt cmic tim pck r th thi tht i rviv ?

Th dr vrmt h di it t ird impri, rchi t t

cp p th ki, irc, t d thr idtri. I di , th vrmt

h drtk m rik trti. strti ith rmr Pridt gr w. bh

dmiitrti d ccrtd Pridt brck om, th it rt

hv t tiizd m ctr hi mriizi thr. Fdd tmrr

dr, td ti dt i trmic, d it i cti th mmt.

I ct, h th $3.6 trii Pridt om h rmrkd r th cmic tim

h rd dcit. ad hi m th k d ititti tht tk Trdat Ri Prrm (TaRP) m hv rd pid tht ck, th ct i, th dr

dcit t $1.8 trii r 2009 . Tht qdrp 2008 dcit, d it

rht r tt ti dt t vr $13 trii.

I thi mrc itrvti th t rp? I dt thik . Rci r

thi . Th cm tr p d d; m d t r mt

amric pp pi d . Th ctr h thrh t t v

mjr rci i th pt thirt r . I ct, th vr, thrh

th cc t vr iht r. smtim th cc t r, ch th

1990-2002 cc. smtim it hrtr r, ch th 2001-2008 cc. ad hi

ci trtit ik m r it itrvti, Cr iit tri tpd th ctr t rci. bt th pt h h, th rt th

vrmt rt r t hrt-ivd.

Fdr ci itrvti i rt ik chi r drik. a r drik

ii ci d r prvid t r hr, t c th ct r

, thr i crh tht .

Riht it miht k ik th cm i ii t rd. bt thi i ik th

impct dr pdi tht h cd r i hi, drp i itrt rt, d

pik i cr rm t mmr Ch r Ckr prrm. Th -trm ct

rmi t , c r prti cmic ci d r hih.

Th rit i tht dri th t cp r, i hv rd, d th hv

rcd t mk ch. Th hv hd t ct ct; th hv hd t d t

mr prdctiv; d i m c, th hv hd t mp. Thir hrd-

rd i t qick rtt dri th tmprr t rm Cr.

Th hv d t thir cmpi c prdc mr ith r xp d

mr rkrc. Th r cti t r-hiri mp. Tht h

mpmt rmii hih. I ct, mpmt dt c ck r

iht t tt-r mth tr rci h ttd t d trd rd.


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Th t dvic i th tim? stp iti r th vrmt t rc . Prrm

r Crtiv Prctic Rcvr (CPR) idtii r individualcmic

tim pck. lr h t prtct r, r mi, d r tr i

trti Iv tid i m ri Mid Frt k, d th prctic th ki

t thriv, mttr ht cmic trm miht rii thr d. Fi, c r

ch t th vrmt v vr h pprtit t prpr. y hv ttr drtdi h t ccmpih thi rvi th ix stim Pit tht

I t t i mmt. bt rt, k h it crci t tk rhip r tr .

Our Ship Is Taking on WaterH ticd r ti hip i tki tr? I rmd?

whtvr id th pitic d cmic i d r, it t th

tr i i rii. ad it d i prt t miidd mmt d vrmt.

whthr r ki t th pt r tic th ci idtr, r th

ddictiv dcit-pdi th vrmt, ti d crprt dr hv d

ht vr thr Pzi chm rchitct h dcrd rii i m

t cvr d. ad it cd ik .

Tk sci scrit, r xmp. a r , i th sci scrit tm did t

ri i m t cvr crrt rcipit icm, it d hv krpt

i i mth. Crrt, tht d t t thr mth. I thr rd, i th

vrmt rt t cct sci scrit rm rr r id thr

mth, th tm d rk. Thi i diccrti h riz b bmr

r ii t rtir d i cti di r th xt tt r. wht

r, th pcmi rkrc i mr th it h vr .

wh sci scrit itrdcd, thr rcipit r vr ixt rkr.

withi jt dcd r t, it t d t rcipit r vr t rkr. I

1986, it t rkr r vr ix rcipit. n r tti d t thr r

r rkr r vr rcipit. I thr t t t r, i thi kp i

th thr i, it i t d t t rkr r vr

rcipit. Tht t rr pi th r vr pr i it!

at th tim thi pic i i ritt, th sci scrit dt i t $62 trii. I hv

tr imii th cp v trii, viiz $1 i id p d-t-d

rm hr t th m d ck200 tim! Tht im t v mr vrhmi

h r tht th Trt sci scrit timt crrt dd iiit

i xc $100 trii i 2009 dr. (I thr rd, i td dr, $62 trii i

ct ct mr ik $100 trii th tim p it .)

Thi m tht th dr vrmt h itd it t p mr th $100 trii

tht it h t t cctd ( ithhdi rm amric rkr pchck). Th

vrmt dt hv th m t cvr it xpd th it c t it


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i ithdri m rm r pchck xt mth. Thi d ik hvi

i $700,000 mrt, d i dd cm mpd, d

t t thr mth r d hm.

Th rit i, r i t hv mr d mr pp i th ith r d

r rkr pi. Th vrmt timtd it crrt pprch dt ctch p

t it ti th 2040tht , ti th ci crii v rct d rv i.

n tht d rcki cd cm i t t t r. ornow.

Dri th rt k octr 2009r th rt tim i hitrth vrmt

pid t mr i sci scrit th it tk i. H did thi hpp? with th ti

mpmt rt t ticiptd 10 prct, th vrmt cctd i

sci scrit ithhdi, hi it ti pid t vr ii dr i pmt.

Thi dir cri t prdictd t hpp ti th r 2042, th 2017, d it

rd hppd i 2009. Th sci scrit prm i ik tr, cmi t

r d tr th vr xpctd.

bt tht t th cr. ev thh m iv tht sci scrit i r rtt

titmt prm, Mdicr i ix tim rr i trm dd iti,

ccrdi t Dvid wkr, rmr cmptrr r th u.s. gvrmt acctiitofc. with crrt r, it d rqir $700,000 rm vr -tim rki

idivid i amric i rdr t cvr th h sci scrit d Mdicr iiit.

Mhi, t th tim thi i i ritt, u.s. ti dt i vr $13 trii.* Tht

mr th $39,000 pr citiz. Th itrt th ti dt ccr t mr

th $41 mii hr (jt dr $1 ii d)tht vr $690,000 pr mit, r

mr th $11,500 pr cd.

* Viit .midrt.cm r p-t-th-cd pdt th ti dt.


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I dt thik it cm rpri tht th dr vrmt i rcd ithr t

c ck drtic r ri tx drmtic. Mdicr d Mdicid i trmp

di r ti d, r, dctith h rk. Th Cri

bdt ofc timt tht mid-ctr, midd icm mi i hv t p t-

third it icm i txd dt rt th ccmpi iti!

Hr tim qti: wh i it tht th vrmt dt hv t iv ic cmic

pricip ik th rt ? Fr pp ik d I, h cmic ch hit,

hv t chic: 1) w c pd , r 2) w c r mr. w pt r #1

cc th c TV; tr d th thrmtt; md r cth; r r

h; d mk dir rthr th t t.

wht h th vrmt d dri th rct ci crii? Rthr th ct ck,

it ch t pd mr. Rmmr tht dcit $1.6 t $1.8 trii i 2009 ?

smd t t p r it.

wht i chippd i riht t p it ? Thr r pprximt 100 mii

txpr, d hv t rit chck r dditi $18,000 i tx t p

2009 dcit. bt tht d t ck t hr r i ti dt

Jr 1, 2009. smh, md, thr i rcki r thi dt. ad it i

ik cm t r xp, i th rm mr tx.

wh cidr thi, h trt th $3.6 trii cmic tim pck i th

r? It dt th hip c rviv tki th dditi iht cmpi

ik gr Mtr (r tht gvrmt Mtr?!). ad hv t t i

th rrri dck chir Cr c d thi t v thi ti v

tht m dmd t mch dt.

I r ik m amric, it t jt th vrmt tht i th ct dt.y miht p t r ck i dp tr, . or prhp v prprd ,

t d ik t cti t prpr i th cmic tim. whtvr r crrt

cmic itti, c tk cctiit r r ci cc rdi

it d ii trd mch ttr tr.

You can do this with your own economic stimulus plan.


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Our national ship is taking on water, and while Congress does little more than

rearrange deck chairs, you can board your own lie boat and head or better shores.


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Stimulus Point #1:Improve Your Credit Score

o th rt thi c d t jmptrt r idivid cmic tim p

i t imprv r crdit cr. a d crdit cr i critic r qii r ,

mrt, crdit crd, d v m j. y hd im r cr t t 720,

ith 850 i th hiht c .Thr r thr crdit r tht tt amric crdit cr: eqix, expri d

Trui. wht miht rprii t m i th r t vrmt ci. Th

r idpdt cmpi tht rt r crd xct h th cm p ith

r cr (d xct h t imprv it) i prhp th it crt i amric.

lt jt tti r crdit cr i ik i t th ci ompic. y hv

thr jd. atr r prrmc, jd hd p cr , , 720, thr 680

d th third 640. Th th tk th vr, t riz d 720 t t

th . y k ht c t d imprv, d th jd , w ct t .

w miht t iv hit, t it crt.

Phi Tir, dr rid mi, h hpd dmti th prc r imprvi r

crdit cr i hi k, 7 Steps to a 720 Credit Score. Hi rcmmdti icd:

Aimtohavethreecreditcardsnotjustoneortwobutnevermorethanthree.Ifyouhave

more than that, pay them of and cancel them as soon as you can.

Neverusemorethan30percentofyourcreditlimit.Inotherwords,ifyouhavea$10,000

creditlimit,donotborrowmorethan$3,000.

Haveonepaidrevolvingaccountthekindyoucanmaintainatafurniturestore.Purchase

somethinglikeasofaandthenpayito.Useiteverysooften,andbesuretopayito

every time.

I th vr pr ith crdit crd, cr d h mrt $150,000

rid hi r hr crdit cr, , 50 pit r , h r h cd v mch $700

mth. wh? bttr trm d itrt mrt d ttr cr ci. Imi

tht$700 mth. Cr thr amric txpr t $700 c vr

r i th rm tx rt, d th cm t jt. Imi i vr amric

r vi $700 mth d cd tht t rchr th cm!

Stimulus Point #2:Learn How to Leverage OPMH d k d crdit i mk m? b vri othr Pp M (oPM).

y c timt r pr cm ri h t d th m thi.

o dmt v, thr r r thi c d ith r m:

spendit lendit

ownwithit giveitaway


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Mt r qit cqitd ith pdi mi ct, m m too

cqitd. Th vr amric iv th pchck h r h i t thr

mth rm . Th thir m r rticti, cmpti, d dprciti

t. I th cd r t dt prpr, th d k it c th

rtt ci t r idi th.

Dt c d thi? y, h dt th k d crdit i d, it

vr d thi.

eti, k rr rm , thir ctmr. wh pt r m i k

r crdit i, d thm r m. Th r ii t p itrt r

vi, CD r m mrkt cct c th i tr rd d d tht

m t hihr itrt rt i th rm cr , mrt, hm qit ,

d m i . ot thir prt mri i t trri hih, t ith h

vm, th c r mii, v ii.

Fr r, I hv tht pp t d ht k d crdit i drr t

itrt rt t r mr t iht hihr rtd c r h t d it, .Tk m ik Dd Trmp, r xmp. I vv r tt tc ik Trmp

kcrpr d dcid h t t it, h dt p t hi chckk d rit

chck r $100 mii. Itd h pr c hi t d , Hr th d. Im

i thi idi r $100 mii. Fir t h c p t itt pi,

r ti p th t mt m pi t thi thi. I thr rd, h t

t d th t mt h c t ith t th idi. H drtd th

amric dr i vr rth mr th it i td. H ii t p 6 r 7 prct

itrt tht tx ddcti d kp hi iqidit d t.

sm ik tht rd k tht:

Itiswisetopayinteresttomakemoreinterest.

Whenyouborrow,usethemoneytobuyappreciatingassetslikerealestate,not

depreciating assets like cars.

y , k pt i t ctriithr dtr r crditr. y

r dtr i rr r dprciti t ik cr d itd t mk mth

pmt r thirt-ix mth. y r crditr i rr $100,000 rm th k

ith r itti pi it ck, t c hv iqid t, cd

rit t chck t p it t tim. Th k dt r d it, t tht

r rri it t mk mr m. Th hp i ivt it i tx-dvtd rtx-r vhic t hihr itrt rt th rrd it.

bcm r k. lvr oPM. brr t crv, t cm. ad d th

t ivtmt vhic r r m.

I cd dct mr amric h t d thi, cd ik tr th cm

rdwithoutdr tim dr. Cidr thi: br th rci, thr

19 trii dr rth ridti r tt i amric, ith t $10 trii


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tht cmrd (itti id qit ith r mrt it). with th

rci mrt mtd d dprd r tt mrkt, tht tt i

pr tmprri vd t $17 trii, ith t t $8 trii it cmrd.

at 60 prct thi tt ridti r tt t b bmrhich

rprt t $4.8 trii i z, id qit. Fr b bmr h r rid

tivi thir m, thi m th r i itti riht dr thir r.

Imi i dctd jt b bmr h t cm thir kr, tchi

thm h t vr oPM tiizi scc eqit Mmt ccpt. Thik

ht d hpp i b bmr pt qit mmt trti it mti

prti t 75 prct th z dr itti i thir hm$3.6 trii

thri id qitd trrrd it t d cr rpitri i hih rtd

irc cmpi. (ovr, th mti-trii dr irc idtr h prv t

th t pc t pt ri ch.) I tht m r pt it vi vhic

ith rpt irc cmpi, it d i tr pt t i tht d

pr cmic rcvr tiid.

Hr h. with thir trict rrv rqirmt, irc cmpi hv t ivt

i aaa d aa d (hich timt crprt amric); d th ct

prti trd mrt hppi m d fc idi (hich timt

cmmrci r tt, ctrcti, trprtti, d mr).

I hv rcmmdi tht pp pc thir ri ch (ch m

rmrkd r rtirmt r thir hm qit) d kp it i ivtmt tht r:

1) iqid, 2) , d 3) r tx-r rt rtr.

Tax-FreeHome EquityRetirementPlanning

AAA and

AA Bonds

CommercReal Esta

CorporatAmerica

Tax-FreeRetirementSavingsandIn

come

What happens when we put idle home equity to work in maximum-unded, tax-advantaged insurance contracts?

We can stimulate the economy and enjoy tax-ree retirement savings and income.

Government should derive tax revenue rom a vibrant economy stimulated byreal investments rather than creating an artifcial stimulus, borrowed rom uturetax dollars.


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I ch t pt m ri ch i mximm-dd, tx-dvtd (MFTa) i irc

ctrct. a I tch i m k, th r d dr scti 72, 7702 d 101

th Itr Rv Cd d r th ivtmt vhic tht, h prpr

trctrd d dd, ivtr t:

1) accumulatemoneysafely,tax-free

2) withdrawthemoneylatertax-free

3) transfermoneyincome-taxfreeatdeath

Fr th t tv r, I hv d trt cd idxi. with thi, r

pricip i prtctd d dt h th mrkt d. wh th mrkt

p, r crditd htvr th idx r chic r (ik th s&P 500

Idx)p t cpitht r m ct t rik i th mrkt. bd h

th s&P 500 ct prrmd th t tt-v t thirt r, vr

crditi rt 7-8 prct cd hv rizd.

Pp mtim k h dtr i th r tt mrkt ct th t

ptimizti trti I tch i m k. Hr vr pr xmp. Dri 2008-

2009, m h tmprri t d i v t $400,000. I hd rcd m

hm jt prir t tht prid, h it rth mr. I didt rr t cm, t t

crvjt ik k d crdit i d. y miht thik th t mrkt d pt

m i r piti. o th ctrr, it pt m i ctr.

y , i I hv $400,000 qit ri vr 8 prct itrt tx-r

($32,000 r i ri), d Im pi 6 prct tx-ddcti itrtr

t, tr-tx ct 4 prct ($16,000 r i itrt xp) m mrt, th

Im mki 100 prct, r d ht m ct th m i ($32,000 ri

vr $16,000 ct). s Im i ctr. I c p h m ri t mt m

mrt pmt d ti cm t cidr hd. I hv iqidit, t, d

Im ri rt rtr. Pp h m dvic d t thir hm qit,

v i thir h d i v tmprri. Th pp ct timt t th

cm, t dprtc thir hm r t i dr rcr.

I th b bmr ith cmrd ridti r tt pt 75 prct thir

qit t rk i cr rpitri ith irc cmpi, i jt th xt v r,

d ix t $3.6 trii it th ti cmjt mch

m th vrmt t t pd it cmic tim (ith m it dt

r hv!).

sd ci dcti tpic ik scc eqit Mmt cd mch

rthr th dcit pdi. I drtd h t vr oPM, th h

ti cd ttr . Frthr dti h t impmt th trti c

d i th Mid Frt k ri.


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Stimulus Point #3:Forget the 401(k) and IRAThere Are Better Options

wh it cm t vi d rtirmt vhic, th trditi rhtric i tht

hd pt r m it qid p ik 401(k) d IRa. Fr r, amric

hv cki thir ivtmt m i cct ik th, i thcrd, hpi it d r th t th t r th tr.

Th rct cmic dtr h t thr t th andth t rm m

amric 401(k) d IRa cct. sm hv t thdthr hdrd

thdrm thir trditi rtirmt cct. Thr r thr pp, hvr,

h hvt t dimi ct, thv icrd thir th vr th pt cp r.

wht d th k tht dt?

Th pp hv d prv t cvti ivtmt trti ik th

dcrid i th Mid Frt ri k. Th k tht qid p r

qid th vrmt. ad th vrmt i xprt t ri it t it m

r thr.

with 401(k), r xmp, r tx m drrd th m ivt, t h

ithdr r m tr 59, i hit ith tx. y m rprid

t d tht mt amric r i hihi t hihr tx rckt h th rtir

th th r r. wh? M thm hv pid thir hm, th r

t rm th itmizd ddcti mrt itrt. Th r hv

dpdt ivi ith thm, th tht tx dvt, . ad hi th r

t ptp tx dri th ctriti r, h th trt t ithdr thir

m i rtirmt, mt pp d th d p pi ck t t tt tim th

mt tx vd dri thir ctriti r.

I r rmr, hich d rthr d: 1) v tx th prch r d

i th pri, th p tx th r hrvt i th , r 2) p tx th pric

th d, th r hrvt itht tx th i? Mt d rthr

prch th d ith tr-tx dr d tr th hrvt tx-r. y c r

h t d thi .

n d crti ttr th tmrr, r xt mth, r xt r. yr cct

(hp) i ik rth mr i th tr. ad r tx (rtt) i ik

hihr. wdt rthr t r tx vr d d ith ? epci i r

cct hv t m i th cmic dtr, th riht mk mr th vr t ditch th 401(k) r IRa.

It t jt th tx tht r prm. I d r i itti hr mt

ithdr r m rm r 401(k) r 59, i dditi t tx, hit

ith 10 prct ptm th vrmt t t pckt riht . I c

it t ithdr r m, r ti jct t mdtr ithdr tr 70.

I dt ithdr th mt th vrmt mt ch r, th pt


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i 50 prct tp th tx. ad i h p thr i ti m i r

cct, uc sm i tk r hr it it p t -p hir. I ct,

r chidr cd d p ith itt 28 prct th m v hid i

IRa d 401(k).

Time mzi rct pihd rticd titd wh It Tim t Rtir th 401(k)

tht ti crrpd ith th tc I hv tk r vr thirt-v r. Cidr

th rvi qt rm th rtic:

Th trth, thh, i tht th 401(k) i id, ci p, rtt

rpitr r r rtirmt rrvFrm th d 2007 t th d Mrch 2009,

th vr 401(k) c 31%, ccrdi t Fidit.

I ht mt m ik cr jk t m, th cct prvd th mt dr r

th ct t rtirmt. Dri th mrkt dtr, th 401(k) 55-t-65-r-d

t qrtr mr th th thir 35-t-45-r-d c. Tht c i r

r r, r 401(k) rth i driv mt ctritibt th r

hd 401(k), th mr mrkt-xpd it cm.

Thr i ti t th 401(k) dimm. It prdct tht rt t pricip

hi prvidi cmptitiv rt rtr. It prvid iqidit d xiiit. It kp

rm th dr mrkt vtiit. bt , it prvid th tx-r

ccmti d tx-r ithdr.

Thi prdct i mximm-dd, tx-dvtd i irc ctrct tht

idxi trt t ck i r i d prvt .

b prpr ptimizi r t, c tk dvt MFTa i irc

ctrct tht r th ivtmt vhic tht t:

accumulatemoneytax-free

accessyourmoneytax-free

haveyourmoneyblossominvalueasittransfersfreeofincometaxwhenyoupassaway


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a cmr dvct, I xpi th mximm-dd tx-dvtd i irc

ctrct i dti i m ri k d prtti. ak r ci dvir r

mr irmti t th trti. y c r h t impmt trtic r-

t rm r 401(k), IRa r thr qid p d trt idi r th td.

b mpi th trti crrct ith prpr trid pri, m pp

hv cc ithdr p t $60,000 r rm thir 401(k) d IRa ith txcqc. It d hv t i th trti c rk r .

whtvr t i r ijt trti t r r rtirmt, it t t r r

t t t i. Rmmr, th crt t th ccmti i t th rt rtr,

t th iit t pt m id, kp it id, d pt it t rk r .

Stimulus Point #4:Uncle Sam Should RewardNot PenalizePeople or Investing

Thr r m thi ih cd ch t th vrmt v. bt ththi tht cd mk th it dirc i th ti cmd r

pr cmii r th vrmt t tp pizi amric r vi d

ivti.

whi th vrmt drtd d tx t prtd it r civic

rpiiit d hr t hp d th thi t rmth vrmt

ri dtr cmic rth h it tx amric r vi d ivti.

T itrt, dr di vr prid r tt prid i r t vr $1

mii i it d tx-r. I it txd--rd, th dr d t $2, t

i hv $1.75 tr pi 25 prct i tx. Th $1.75 d t $3.50 i th xtprid, t i p tx th icr vr pridt th d th m tt

priditd hvi $1 mii, d hv t $72,000 i 25 prct

tx rckt. I 33 prct tx rckt, d hv $27,000! ad t tht i h

mt amric v i tr-tx dr d ptti thm i ivtmt tht

r txd--rd. I pt m i tx-drrd cct ik IRa r 401(k), th

r $1 mii i r rth $750,000 tr pi tx i 25 prct rckt, r

$666,000 i 33 prct rckt.

wht t Rth IRa r Rth 401(k)? M pp th r ttr rm tx

tdpit. Idd, th ttd dvt Rth p i tht tr-tx

m h ctrit, ith tx th ditriti d ithdr. Crrtt 13 prct IRa d 401(k) r Rth, d Cr rciz mr d mr

pp r cmi itrtd i thm.

wh? Mr pp r rizi th d rthr t thir tx vr d d ith ,

rthr th tr. s vr t, cr mk it ppi r pp t cvrt

thir trditi 401(k) d IRa t Rth cct. I 2010, r xmp, th vrmt

i t cvrt r trditi cct t Rth cct d prd th tx


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vr t r. Thi it jt rit th vrmt prt. It chc r th

vrmt t rt rv, c h cvrt r trditi IRa d

401(k), p tx tht m trr. ai, thi i ic, t it t t

kid. It jt mrt i uc sm prth d m, d h hpp

t tk r i th rm mr tx. (Thr r ttr trtiv r r rtirmt

vi tht hv th dvt tht Rth IRa d 401(k) r, t cidr mt mr. Cidr trtic cvrti r trditi IRa t

mximm-dd, tx-dvtd irc ctrct, hich I dd t rir, rthr

th t Rth cct.)

with thi txti rtirmt ivtmt, it th qti, hr i th

ictiv r ivti, uc sm?

wht i td t cr pp t mr -tii ri thir

vt rdth cm i d rr tk 25 t 33 prct thir hrvt.

H m pp d t th pitki tr pti d, tri,

di, ctri pt, d cri r th vt rm M thrh sptmr?

I th vrmt tr t amric t -tii dri thir rtirmt

r, thr mt mjr prdim d pic hit i th ivti i txd. ad

ith 78 mii bmr tti rd t rtir d th sci scrit d Mdicr

tm vr dr-dd, th d r ch i dir.

I th vrmt ttr crd pp t v d ivt, tht d

timt th cm. a mr virt cm d m th vrmt d

d p tti mr i crprt, rti, d thr tx rv th it crrt d

tki it dirct rm th pp.

admittd, it m pi-i-th-k ih t hp uc sm d d him pic

th rtirmt m pi. s ti tht d, prtct r rm cr tx

ri mr t tx-r ivti thrh prpr md MFTa i irc

ctrct xpid i m ri Mid Frt k.


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Stimulus Point #5:Exchange our ComplicatedTax System or a National Flat Tax & Consumption Tax

Hr d prp Id ik t mk: T tr cr ivti d i tr timt

th cm, tx hd t.

wdt v -p tx rtr? Imi itti d d i t

t r tx i dr hr. Did k tht t idivid d i,

amric cctiv pd 7.6 ii hr r i t tx rm rm th IRs?

Tht t 3.8 mii -tim mp cmpi ith th tx cd. Thi i pr

th it t tim, r d m. a t tx d rvtiiz th

prc.

bt t tx i t mr th jt cvic. It t r mki dirc

i th rv thi ctr d t t, prdctiv, d hth. I vr

ctritd t tx , 20 prct, tht d pr fcit t cvr r

ti xp, d hp ri m th dcit r ctr i rcki p.

(I 1986, vr amric txpr pid t 18 prct thir icm i tx i

rdr t mt th cd dt dr Pridt Rd R.) ev i th t tx

r itt r, 10 r 15 prct, cd rcvr th rt th rv ith

ti cmpti tx tx.

Thr r t pp i amric tht tith thir icm d ctrit 10 prct

t thir chrch r thr chriti. wh vr ctrit, rrd thir

circmtc, thr i t mr diit d itrit i th tm. ev i chrch r

chrit it idivid r mi, th th ivr d th rcivr ttr h

thr i tr diivi r ctriti ccrdi t thir m. a t

prct tht vr p i ir t th -icm-rr th hih-icm-rr, d it d t dtr th ictiv r th hih chivr d prdcr

t cti prdci tht cit c td.

Crrt hv t 55 prct amric h p mr i tx th th

tk t (rciv i t). Th r th txpr. bt hv t 45 prct

amric h tk mr (i ci t) th th p i. Th r th tx-tr.

Th crrt prizti i amric pitic i t hich dircti thi hd i.

Th crrt dmiitrti i tri t i it th thr hr 50-55 prct

amric i rcivi mr th th p i, t th xp th rmii 45-50

prct h i rqird t p v mr i tx th th rd d.

with t tx tm, cd pr th d t tx pp r vi d ivti.

Cidr ht m c d h it ccmt tx-r. Rmmr h tht dr

di vr prid r tt prid tx-r d mt t vr $1 mii th

d? Tht mii-dr t cd rt icm $70,000 r, tx-r.

wht d rtird cp d ith tht $70,000 rtirmt icm? Th d

pd it. ad h th pt it RV r xr crth vrmt cd

xct cmpti tx.


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a t-tx/cmpti-tx tm d d r mr t cr ri vi d

ivti, hi ti rti th rv th vrmt d. Thi d prmt

-rit ti pp h r t ki r rtirmt hd-t t rviv.

Itd, th d prpri thmv fcit r rtirmt, d ctii t

pr th cm c th d rtir.

ev i rmi tck i r crrt tx tm, mttr r pitic fiti,

c r tht v t t cr rv rm th ti mttizi dt. o

pitic phiph th rmd i t ri tx t p d th dt. athr

th cr i t ri th rv tht i i txd (i thr rd, miti crrt tx

v t ri th ctivit v th cm).

I k t thr ctri, c th imprtc rii th v th

cm cri trprriim d ivti. Tk th uitd Kidm,

r xmp. I th uK, th hv ch t ri tx rthr th ri th rv t

txd. It cmi vidt tht th trprrth h crt th mjrit

th rvr pdi mr tim, m d r ith ccti rm tri tr t h t vit thir tx, rthr th ci ivti d icrd

d prdctivit.

Thi cd th pir amric i hdd it i r t cr. Rct vt idict

it rd r m. Tk Ciri, r xmp. I nvmr 2009, th tt

Ciri tk rdic cti t cvr it iiitit th xp it rr

d itht vtr ct. Th scrmt mkr mdtd 10 prct icr i

ithhdi vr rkr pchck i th tt Ciri. Th id, cr, tht

it t tchic tx icr. Th id th vrmt mr td t ithhd

10 prct mr t vr pchck, d th th d ik t it ck i

ir tx rd xt pri. It prtt cvr idrri m rm th pict itrt.

n kp i mid thi i i dditi t Ciri rct tt icm tx icr t

tp rt 10.55 prct, tx icr, d r di cr ritrti .

wh? Th tt Ciri ti hrt ii dr i tx rv d dcidd

thi d id t hp mk p r th hrt. grt r th vrmt, d

r th pp, pci i iht hih pric, dprd hm pric d d-

diit mpmt rd rki hvc i Ciri. Hr th ik t rm th

tt itt chm:

Manytaxattorneyssaythatifthisgoestocourt,theactionwillbedeemedunconstitutional,butbythetimeadecisionisarrivedat,thestatewillhavealreadyborrowedwhatitneeded.

Inthemeantime,savvytaxpayerscansimplyincreasethewithholdingallowancetheyclaim

ontheirW-4withtheiremployerspayrolldepartmentsothatCaliforniawillnotbeableto

secure interest-ree money out o their paychecks.


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Averagetaxpayersnotknowinghowtoavoidtheincreaseinwithholdingwillbear

theburden.Theywillgetusedtotheslightlylowerpaycheck,andthencomespringtime,if

andwhentheygetastatetaxrefundthat(hopefully)is10percenthigher,theywillactually

praisethepoliticiansofCaliforniaforthemisperceivedtaxsavingstheycreatedforthem.

Whatsmore,whenthestateofCaliforniawastechnicallybankruptinthespringof2009,

itpostponedsendingpeopletheirtaxrefunds.Whatproofdowehaveitwillnotrepeatthe

samein2010?

I id ik Ciri t mmtm i thr tt, it i v mr pprt th

vrmt h itt itti t ictiviz th pp h r mk m i thi

ctr. Cr m t it t th h t t prrv trprri-

midd cit, d th m t it t trtiv ik t tx/cmpti tx

tm. bt c d thi t pr r ivtmt rm cr tx d

timt r ci thd th ti. a v id, mximm-dd,

tx-dvtd irc ctrct r th t t ptimiz r t d

prtct r rm t tm tht crrt tx trditi ivtmt vhicik 401(k) d IRa.

Stimulus Point #6:Separation o [Economy] and State

or rthr r i h t r prti chrch d tt i th Firt

amdmt t th u.s. Ctitti. wht d hp th ctr i rtr

prti economyd tt.

Th Frch hv rt trm r tti d tti thi tk thir criz

ir. Th vrmt d t qit tri t ctr th u.s. cm i it ddmtic i titi. It d t tp tri t mipt thi ith tri,

xprt, imprt, cmpictd tx tm d mr. It d t v chic d ctr

i th hd amric i d rkr, i th mrkt t mk it

it .


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a qick k t hitr h th v ptti chic d ctr i th hd th

pp. br gtr ivtd hi priti pr i th 1450 d qt pritd

th bi, rdir pp didt hv cc t th bi rd. Th r dpdt

hri m rd d itrprt criptr, hich i rii-dmitd cit,

ctd vrthi rm pr t i ir.

D siv, c rid, pitd t t m tht th bi ditritd t mr

d mr pp, it v ri t trtiv thiki, th pirit d cr.

wv rii mvmt prd, di t cmic mvmt, .

Fr xmp, prir t th gtr bi ditriti, thr r 120 h d dri

hich pp r prhiitd rm rki. atr th bi ditriti, mrcht d

criptr i t r imiti h d d phi r sth-d rpit

rm rk. bi cd mr prdctiv, d th thir cmi r timtd.

I ctri hr thr r xtrm vrmt mipti cm, th ct

r vidt. nrth Kr, r xmp, p i cmpri t sth Kr. Pp r ivi

i pvrt d drth hm riht rth th thirt-ihth pr, t t th th,pp r thrivi i mrkt-driv cm.

or crrt cmic crii i cri vr-mr vrmt vriht th

cm. w r tchi th vrmt ivt trii i cmpi tht r t ik

t thriv. Tk gr Mtr, r itc, cmp tht cd r rmi crippd

mttr h mch m i prd d it thrt.

Riht , t 27 prct amric hv prchd amric-md

cr i th t thr r r r. Thirt r , Dr. w. edrd Dmi, rd-

rd pciit i tt qit mmt tm, td th i thr amric

cr mctrr th dd t imprv qit i th td t thriv. Th amric

cmpi ird him. bt Jp cmpi itd. Tim h h tht cmpi

ik Hd, ni, d Tt hv tditcd amric-md cr i qitd .

n t 7 prct pp thik th i amric-md cr xt r.

ev m th h are i amric-md cr, d k hich mctrr

thr i mr ? nt vrmt-ckd gM r Chrr, t Frd. Prhp thi

rv amric rt d cmpi tht d it m t rvivm

tht cm rm tx pcd thir hrd-rd dr. ad it cd pit t th

ct tht m pp dt trt vrmt i i.

I ct, mrkt rcti vr th pt t r idict tht th mr th vrmt

t ivvd i rti i, th mr it c tiv impct th cm. Fr

xmp, hvr Cr i i tmt, ith rti i iht mthi i

ik th hth cr rrm, th tck mrkt p. bt h it ppr Cr i

th hm trtch, c t pi mjr iti, th tck mrkt tk. Thi h th

cm i th ci th htt pitici. l vrmt mddi c d

t ttr mrkt prrmc.


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wht d hpp i th vrmt t t th ? Tk th gM cmpi r

xmp. wht i th cd prt idivid, i th mrkt t rrd th ttr

rd? Chvrt d Cdic, r v pcic md Chv ik th Crvtt, cd

prt thir cmpi. I th md d mk cd hd th ci rd

thir i itr-rd d cti itht i d vrmt vriht, th

cd rih.

ovr, d ttr i th vrmt tppd ck t th mrkt t

ric rrd cmpi h xhiit rrc, qit mmt, iit

d idtriim. simir, th vrmt hd tp rm tx tm tht rd

th h r ivti i, d ititt tht trt amric mr ir d

cr vi d ivti.

Find Your Own Solid Ground

Thr ttr tim r t rd th it ttr ci ivi d hd rhr. n mttr h dir r crrt ci itti, c d id rd. oc

thr, can cti tki tp trd tr th dvp th ki t thriv,

rrd cmic d tht rrd .

It pi t ri ht v t i tx-vrd virmt d prtct r

vr i mttr ht hpp i tck mrkt r r tt mrkt.

Th vrmt m vr p ttti t cmic tim ti ik th.

Thr t imp. Th drt th hth cr rrm pck mr th 1900 p

h it rd i th 2009. Thi cmic rrm pck? Jt ix ic

trtit ix trti tht cd prhp ri t drmtic cmic ch.

Rrd ht th vrmt d, crt r cmic tim pck, d i

tr, prt th rc r cmic d tht c hp tr thi rt ti rd d

crrct it cr. Ctct r ci dvir t t trtd td.

The Last Chance Millionaire will give you new direction. It will

instill greater confdence or your uture. By utilizing creative

asset optimization and equity management strategies, you will be

endowed with new capabilities. You will eel empowered to prepare

adequately or a comortable retirement.

You can achieve fnancial independence, and you can do it now!

You may go to MissedFortunecom/DVD to see how

most people obtain a ree copy o my book, The Last

Chance Millionaire. To take advantage o the special

DVD ofer you will need to use the purchase code

DOUG


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Author Note:

b i th t ptimizti, qit mmt d th mprmt trti

xpid i The Last Chance Millionaire, tpic b bmr hmr ith m m

ccmtd i IRa d 401(k) d m dicrtir icm ch mth t t id r

rtirmt prp c pi d hi r hr t pd rtirmt icm ithit r. Thrh c tdi i th k, ik t rt r prticr

circmtc t r cp trd: Crk d Crri Cti, Frk d Fici

Fr, ed d eizth er, r gr d gi girth. y cr th

drk th iht i th cp r t kp di ht mt pp d, cmprd t

th riht thir tr i th r t rpiti thir t r rtr iqidit, t,

d rt rtr itht icri thir mth ch t. The Last Chance Millionaire

c iv dircti, cdc, d cpiit t cm ci idpdt d

ccmt mii dr r mr tht c rt $70,000 t (tx-r) icm

tht c t d.

Douglas R. AndrewFInanCIal sTRaTegIsT anD besTsellIng auTHoR

athr, rdi h ht d ctrr D R. adr h xtiv

xpric i i mmt, cmic, ccti, rt

( it rt t th cmic i), ci d tt pi,

d dvcd i d tx pi. H i crrt th r d

pridt Prmt Fici srvic, Ic., cmprhiv pr

d i ci pi rm ith vr divii. D hp pp d thir

mid rt i hi t ptimizti, qit mmt, d th mprmttrti. Hi rt t k, Missed Fortune d MissedFortune101,r ti tr.

The Last Chance Millionaire cm n yrk Tim tr i 2007. H c-rt hi tt

ti k, MillionairebyThirty,ith hi .

D ht th Mid Frt Rdi h, hich ir i citi cr th ctr. a

ctrr, hi mir d Crit Rtrt r idivid, mii, d ci trtit

th pprtit t ttr drtd hi trti d impmt thm t prtct thir

ci tr.

a ci trtit d rtirmt pciit, D h pp h t ccmt

m tx-vrd i t chiv th hiht pi t pd rtirmticm. Prmt Fici tch pp h t cc m qit t hc

it iqidit, t, d rt rtr, mximiz tx t. D pciiz

i hpi pp ptimiz t ci t t th Cr, expric, d

Ctriti t cmprii Tr wth th mi c ht.

H h dvpd tiid trk ci pri rrrd t Th eqit

aic Mtrix (TeaM). TeaM mmr r trid ith mr th t hr itiv

itrcti d td t ptimizti, qit mmt, d th mprmt.


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create your own economic stimulus plan

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