“Those who understand interest earn it, those who don’t pay it.” – Albert Einstein
I want to talk to you today about a very special type of account that everyone, no matter how rich or poor, can own. Experts call this the biggest benefit left in the tax code, because your money grows tax-deferred and you can access it tax-free. It can provide a supplemental retirement cash flow that could last until age 100 IF structured and funded correctly. You can use your money to become your own source of financing. It’s a self-completing insurance policy, so if you pass away before you can save enough for your family to live on, the insurance benefit will provide the money needed for them, tax-free.
In very simple terms this strategy is Indexed Universal Life (IUL). It can be a customized cash value life insurance policy which will not only provide protection but can be a powerful wealth accumulation too if handled correctly.
But hold on here, both Suze Orman and Dave Ramsey say cash value life insurance is a bad idea. Or maybe it was your CPA that said cash value life insurance is a bad idea.
Well, guess what? I am going to debunk those myths for you right now.
As Americans, we spend more money insuring our cars than we do our lives. In fact, we actually do things in reverse: we focus on protecting the golden eggs — cars, homes or possessions — instead of protecting the goose that lays the golden eggs.
Using cash value life insurance like an IUL can provide death benefit protection like term, along with a protected place for your money, growth without risk even tax-free access. We’ve all seen the Stock Market rise and fall, with banks and companies failing, the insurance industry has stayed solid. Did you know that during the Great Depression, while the banks and Wall Street crashed, the insurance industry not only maintained its strength but kept its promises. During the greatest period of economic stress in the nation’s history to date, policyholder’s cash value in insurance companies, were unaffected. Contrast that to 9,000-to-10,000 banks that failed during that time and again in 2010, when over 143 banks failed.
This article is not just promoting cash value life insurance but promoting how to grow wealth without risking your money in the stock market, while also providing you with the option of building a tax-free pension and when you leave this good earth to leave a tax-free benefit to the ones you love the most.
Please understand that all cash value life insurance policies are not created equal. You should choose a company that allows you to max fund it without creating a Modified Endowment Contract (MEC). Your premium payments are used to pay for the cost insurance and anything above those cost is allocated to an index account receives interest based on performance of the underlying index, which is then added to the cash value side of the contract. The key to this index is the contract can’t ever have a negative return.
The vast majority of financial professionals and insurance agents don’t know how to do this properly to maximize the cash value growth. When agents study for their licenses, this type of advanced training is not taught. It’s more important to know how to maximize the cash value growth as opposed to the insurance costs.
If you’d like a free copy of the best-selling book “Wealth Beyond Wall Street,” call our office at (888) 891-3381.
Frederic “Ric” Schilling is a Florida native, born in Jacksonville, Fl. Ric is President and founder of Senior Guardians of America, a local North Florida firm specializing in tax reduction, long term illness planning, asset protection, probate avoidance and life income planning. Ric is a National Speaker and Advocate on Senior Issues and has been featured by the Florida Times Union and WJXT, TV-4 in Jacksonville as an authority on Estate Planning and Retirement Issues. Senior Guardians has an A+ rating with the Better Business Bureau and is a member in excellent standing with the National Ethics Association. Ric Schilling is a Certified Financial Fiduciary (CFF). You may contact Ric at 904-371-3302 or 888-891-3381 Please visit: www.seniorguardian.com
This article is not intended to give tax or legal advice. Securities offered through Center Street Securities, Inc. (CSS), a registered Broker-Dealer & member FINRA & SIPC. Investment Advisory Services offered through Center Street Advisors, Inc. (CSA), a SEC Registered Investment Advisor. Schilling and Associates (d/b/a Senior Guardians of America) and CSA are independent of CSS.