01/07/2021
If you’re reading this, it’s likely you’ve never thought of a life insurance policy as an investment strategy.
(If you have… I’m sure nobody has taught you how to fully leverage it.)
The Truth is, Wall Street and the big banks don’t want you to know how to do this the right way.
They want to keep you stuck playing the market, with all the risks and uncertainties that go along with it.
Below, I highlight for you the major benefits of this particular life insurance investment strategy (from capital protection, to capital multiplication)...
This should open your eyes as to why the rich are always getting richer (and why you have no time to waste in getting this in place for yourself!)
I also highlighted some of the key benefits.
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Let’s start with how to protect your money (we’ll get into how to multiply it later)...
Tax Deferred Growth
Many people are already aware that Section 401(k) of the US Tax code allows for funds to grow in a tax deferred manner, but there is a lesser-known section of the US Tax Code that allows funds to grow tax deferred inside a life insurance policy.
The great news?? You are not taxed each year as the funds compound.
Furthermore, with this policy there are no "required minimum distributions" like in a 401(k) - where you get taxed on the growth.
In fact, there are ways to enjoy ALL of your funds tax free. These are Safe Harbor assets.
Tax Free Distributions
“Tax Free" is a compliance buzz word -- a lot of people are now using the term “Tax Advantaged".
When you are pulling funds out of this life insurance investment, you have options.
At ANY TIME you can pull funds out in distributions, or in loans. We recommend both, depending on the goal and situation. (Sounds weird, I know. Keep reading...)
You first start pulling funds as "distributions" up to the basis (or amount you paid in).
After exhausting this portion, you would then start pulling out loans.
As long as we pull the funds out in distributions up to your basis, and THEN the loans thereafter -- there are no taxes on these funds!
For example, let's say that over the course of your policy you paid in $300k of premiums and at age 65 you have $2.2M of cash value in it.
In order to capture that money tax free, you would take distributions up to $300k and then the remaining $1.9M you would take as loans. This is where your death benefit would pay off the balance of the loan(s), then pay the remainder to your heirs!
Guaranteed Loan Option
(Flex Payments)
The cash value in these life insurance policies are based on actuarial science, rather than speculation of markets. This makes it EXTREMELY secure.
LIQUID: You can access cash value from your account at any time. A simple request to the policy administrator is all it takes.
ZERO underwriting, or jumping through hoops.
Although you are paying the interest on the loan, if structured correctly, some of these policies will enable your money to grow inside your account at a greater interest than you are paying!
LITERALLY, you can have money working for you in two places at the same time.
Here is an example:
Let's say you have $100k cash value in your policy -- you would be earning a 4% guaranteed interest + dividends. (On the current dividend scale, this works out to about 6.2% total per year.)
Let's say you want to use $80k for a down payment on a rental property.
If you pull it out of your policy, logic would say that only the remaining $20k would be receiving the 4%+ dividends, BUT (when you structure it properly and choose the right plan), the plan administrator will ask you to pay around 5% interest on the loan of $80k AND they would still continue to pay you the 4%+ dividends on the ENTIRE $100k -- not just the $20k.
In this real life scenario, you can still make a positive interest spread just by putting your money into a policy like this (instead of your savings account at the bank). You’ll have a much larger army of greenback soldiers!
The more you put into the policy, the more LEVERAGE you have.
Starting to see why this is such a closely guarded secret by big banks and investment managers all around the world??
Private Loans
Private loans can be written against these policies, and therefore are, “Off credit”
As these private loans are NOT reported to credit bureaus, you don’t have to worry about them coming up while trying to get approval on a vehicle, home loan, or other traditional debt.
In other words, they’re not counted towards your DTI, or other financial application!
PRIVATE Contracts
If structured and funded properly, these policies can be a shelter from bankruptcy and divorce.
Also, since technically the account’s beneficiary are your heirs, you don't have to disclose this as an asset either!
Unstructured Loan Payments
Compared to a traditional loan, (like a line of credit on your house where payments are due on the 1st and late on the 15th), Cash Value Loans are Unstructured (meaning you don't have to make monthly payments)...
We recommend at least paying the interest annually so your policy doesn't diminish. Otherwise, pay as you want!
No-Loss Provisions
One of the most important things with these life insurance investments is a “no-loss provision”.
It doesn't matter what the market does, who is in political office, which companies are corrupt… the assets in your account will not lose value.
If you want to sit on cash, and wait for the next market downturn so you can buy up assets on sale, then this is your safe haven to keep your money safe against any looming storm.
Now, let’s talk about growth…
No Limit Contributions
Unlike government sponsored plans (like an IRA or 401(k)), there are NO LIMITS to how much you can invest into one of these policies as long as we structure it within the approved parameters.
I have some clients putting $500 per month, and other clients $100k+ per month. It just depends on your goals and needs...
Guaranteed ROI + Dividends
The cash value earns a 4% guarantee + a dividend. Although dividends are not guaranteed, we only place policies with a large asset base and a strong dividend history. Therefore, including the 4% guarantee, you would be earning between 5% and 9%.
Consistent Returns
These returns are consistent, meaning they are paid every year… NOT like the smoke and mirrors of Wall Street’s "average returns" that can sound great, but not even change the value of your policy… see the chart below:
The Bottom Line
What’s the moral of the story here? Well, there’s two...
Don’t get duped by Wall Street’s smoke and mirrors
Get into one of these policies, like, yesterday.
Jump on my calendar so we can show you to the big leagues.
If you’ve just got some quick questions then feel free to shoot me a reply in Messenger and I’ll jump online to chat with you, and if it makes sense to hop on a call then great. No strings attached.
Now, like a blue moon, it’s not every day that I freely give away my time like this. Take advantage of it - find an opening on my calendar and book your free 30-min consult today!
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