Douglas R. Andrew

I wonder if anybody became a millionaire following the advice in this book. A friend of mine invited me to attend this writer’s lecture, and the scheme sounds pretty good. He speaks with the passion of a true believer. I was tempted to go along with his claims.

He says you should mortgage you house to the hilt, pull as much cash as you can out of your house, and invest it in life insurance policies. The interest on your debt is tax detectable, while the dividends on your insurance are tax free. So you get rich on the difference. It sounds good, but I could not find any insurance policies where the dividends were tax-free. I asked him about that, and he said only he knew where those policies were, and I would have to pay him to find out.

So I would have to go as deep into debt as I could, and then hand him the money. What could possible go wrong?

Of course, this was before the housing market collapsed. I suspect anyone who followed his advice ended up in a world of hurt.… (mehr)