Douglas Andrew Describes the Risk Return Paradigm

Douglas Andrew

Douglas Andrew

Douglas Andrew has changed many lives through his Missed Fortune series of videos and books. In this series, Douglas Andrew stresses the LASER method of asset management, which emphasizes liquid assets safely earning returns. In his Risk Return Paradigm, Andrew puts sixteen different categories of investments to the test to illustrate the LASER principle.

Starting at the top of the paradigm, Douglas Andrew applies the LASER principle to various financial avenues. Regarding liquidity, Douglas Andrew points out that choices like business ventures and limited partnerships are not liquid because they do not allow an individual to access his or her money when it is needed. Land, real estate, and home equity also fail the liquidity test, since one cannot get to the principal unless he or she sells or mortgages the property.

When Douglas Andrew applies safety to his paradigm, Andrew notes that money isn’t truly safe in commodities, stocks, and many bonds. This is safety of principal, Douglas Andrew explains. The next principal he applies is the rate of return test.

Those items that pass Douglas Andrew’s liquidity and safety test on the paradigm are lower-risk investments like CDs, money market funds, and U.S. Treasury Bills. These items provide safety and provide a level of liquidity, says Andrew, but they have a low rate of return, especially in the current economy.

Accordingly, only three areas survive the Douglas Andrew LASER principal test—mutual funds, MFTA IRC 101(a), and annuities. Mutual funds, according to Douglas Andrew, are susceptible to the roller coaster effects of the stock market, which can be aggravating to those playing the stock market. In fact, the earnings of mutual funds have been so unpredictable that Douglas Andrew grew tired of keeping up with this business niche and eventually retired his license.

An annuity, Douglas Andrew explains, is a savings account with an insurance company. Annuities are often used by businesses for pensions. This is only tax-deferred however, Andrew warns, which means when it’s taken out it’s taxed.

Douglas Andrew reports that his favorite vehicle is the MFTA IRC 101(a) alternative. In the Missed Fortune series, Andrew tells readers and viewers how they can earn money tax free with accessibility. This solution is provided under the IRS code, which Douglas Andrew explains further in the Missed Fortune materials.

Missed Fortune readers and viewers will learn about three tax citations that allow taxpayers to accumulate money safely without owing taxes on that money. This passes the LASER test with flying colors, emphasizes Douglas Andrew, keeping Missed Fortune clients safe from the “big, bad wolf.” It’s a system that allowed Andrew to average above 8 percent during the past three decades, including the “Lost Decade.”


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