'The Last Chance Millionaire' -- Better Late Than Never

A new book challenges conventional financial wisdom for Baby Boomers near retirement.
Author:
Publish date:

Whenever Baby Boomers are asked what financial advice they have received, they tend to repeat the same old, tired ideas:

  • Pay off your home mortgage as fast as you can.
  • Sock away money in your 401(k) and IRA retirement plans.
  • Diversify your retirement portfolios in broad-spectrum mutual funds and annuities.

This conventional financial wisdom is just plain wrong for those who really want to

thrive

financially. I have written

The Last Chance Millionaire

to prove that there is a safer, better way to optimize assets and accumulate wealth -- a way that few people (except those who have read my earlier books or attended my seminars) seem to know about.

Among the cornerstones of my strategies are these bold, contrarian approaches:

  • Not paying off a home mortgage. By paying it off, you will lose the advantage of thousands of dollars in tax-deductible mortgage interest that can make money for you elsewhere.
  • Removing as much equity from your home as possible to dramatically increase the liquidity, safety and rate of return.
  • Refinancing your mortgage as often as every two years to harvest lazy, idle dollars in your house and put them to work.
  • Rolling out up to $60,000 a year out of your 401(k)s and IRAs with no tax consequence and repositioning that money into a nonqualified retirement plan that can generate tax-free retirement income.
  • Investing in your second-home dream and retirement savings simultaneously by establishing an "Individual Retirement Abode" (IRA) vacation home -- what I call a "401 cabin" or "401 condo."
  • Letting Uncle Sam pay for your life insurance by redirecting the money saved on taxes into maximum-funded, tax-advantaged life insurance contracts.
  • Funding your retirement dreams with a tax-free alternative savings plan so your money can last into perpetuity.

Why should Boomers learn more about my strategies? Because it's unlikely that even those who have saved diligently will be able to satisfy their wants and live comfortably during their "golden" years. A $100,000 to $300,000 nest egg is simply not going to cut it. In fact, a recent headline in the

Wall Street Journal

read, "A Cool Million No Longer Buys You a Luxe Retirement."

No, not even $1 million will work well -- not if you park your hard-earned retirement cash in 401(k)s or Individual Retirement Accounts using mutual funds, stocks, or bonds that will be taxed heavily the minute you start to withdraw funds. Sure, they are tax-deferred. But that's not the same as tax-free, and many Boomers are right to worry that they might outlive those accounts.

Still, I can show the average Boomer, who has stashed away less than $50,000 for retirement, why it's not too late to catch up. Meanwhile, those with sizable savings can open new chapters of financial growth they never considered possible. Even those who dream of, but don't yet own, a vacation cabin or second home can afford one, at the same time turning it into a shrewd retirement investment. In other words, there is a lot more you can do.

As a financial strategist and retirement specialist for more than thirty years, I have seen my clients' retirement dreams deflated too many times as I crunch the numbers with them. They're likely to outlast their resources due to increased longevity, inflation, taxation and expensive health care. "What can we do?" they ask. It is disheartening to stand on the edge of retirement, suddenly aware that your financial parachute may not provide the soft landing you envisioned.

Baby Boomers are not powerless, however. They can overcome past missteps and take strides to ensure a bright and peaceful financial future.

The Last Chance Millionaire

uses the principles of asset optimization, equity management and creative planning to yield amazing results. You can remove the idle home equity sitting under your own roof and put it to work to increase the liquidity, safety and rate of return of those dollars. By managing your equity, you protect yourself against fluctuating home values. You can also ensure that your loved ones and heirs are protected from harsh estate taxes. You can thrive -- not just survive -- through your retirement years.

The Last Chance Millionaire

addresses the specific concerns of fellow Baby Boomers who want to improve their financial situations, but have legitimate concerns about doing so late in the game. The "Sandwich Generation," which is caring for elderly parents while possibly having a couple of teenagers still at home, is in serious need of solutions. Some may view it as a hopeless situation -- that perhaps they have already missed their fortunes. Not so. By using the concepts illustrated in

The Last Chance Millionaire

, they can create a dynamic and secure financial plan, enabling them to switch to the fast track and create superior results.

The age-old wisdom of "better late than never" is as relevant as ever. For many Boomers, their "last chance" may actually be their "best chance" at becoming a millionaire.

The Last Chance Millionaire

demonstrates that by taking charge, it's never too late to become wealthy.

Douglas R. Andrew has extensive experience in business management, economics, accounting, gerontology (as it relates to the economics of aging), financial and estate planning, and advanced business and tax planning. He is currently the owner and president of Paramount Financial Services, Inc. a comprehensive personal and business financial planning firm with several divisions. His previous two books, Missed Fortune, and Missed Fortune 101 are national bestsellers. His new book, The Last Chance Millionaire, became a New York Times, Wall Street Journal, Amazon and Barnes & Noble bestseller within the first two weeks of its release on June 12, 2007.