14 Answers To A Cozy Retirement

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How long do you plan on working for? Many think retirement is determed by age but in fact it is actually determined your net worth. When you learn the concepts of the wealthy, you will be able to take advantage of the same tools used by the wealthy. The best investment you can make over anything is investing in yourself.

Here are a few books that will raise your financial IQ. “Top 10 Ways to Avoid Taxes: A Guide to Wealth Accumulation” by Mark Quann. “The Volatility Shield: How to Vanquish the 4% Rule and Maximize your Retirement Income” by David Mcknight. “The Retirement Miracle”

When looking for the right policy, make sure you take the time to research the best plan and only consider the recommendations of financial professionals. Here’s a secret only the wealthy know. Tax avoidance becomes easier as your wealth increases.

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Retirement Miracle

When investing, you want to protect your money from inflation, market declines, law suits and taxes.You want to protect your family from lawyers, probate and financial hardship if something were to happen to you. Taxes are the largest obstacle to becoming wealthy. Investing inside of life insurance is key to avoiding taxes and a long term stream of financial support.

The tax advantage code used in the Index Universal Life strategy as mentioned by Patrick Kelly in “The Retirement Miracle” is a way to pay taxes on the seed rather than the harvest of your investment. Here are 14 Assets this type of policy posses:

1. Death Benefit — Provides the beneficiaries of the policyholder a sum of money (depending on face value) once they are no longer with us.
2. Cash Accumulation — Potential cash that can be accessed by the policyholder up to the total amount of premiums they have paid into the policy.
3. Protection Against Market Loss — One of the most incredible features of this account, this policy guarentees that you will never see a negative return on your investments no matter how bad the market does at the time.
4. The Annual Reset Provision — Allows the policyholder to capture and lock in each year of positive return of their policies cash value.
5. Upside Growth Potential — Each company sets a cap on their account that allows for potential for substantial growth. This limits how much the account can grow but also guarantees that the policyholder will never lose a dime of their money.
6. Tax-Free Access to Cash Accumulation—A Genius method using the Policy Loan Provision, you are able to avoid the taxes on your money by taking out “Loans” from your own strategy.
7. No Minumum Age or Income Requirement — Life Insurance has no minimum requirement for age or income meaning policies can be placed on children and be supercharged after 20 years of saving.
8. No Mandatory Distribution — With accounts like IRA’s or 401ks, you are forced to liquidate your account after 70 years old. The IUL allows you to choose when you want to liquidate your account.
9. Access At Any Age — Steep tax penalties are anticipated for those wanting to retire earlier than 60. This is not the case in IULs, you can access this money at any time.
10. Protection from Lawsuits(In Many States) — The cash value of this account is protected from creditors whether that is due to bankruptcy, lawsuit or any other type of judgement.
11. Waivers Premium in case of Disability(With Extra Cost) — The company will continue to fund the policy in the case of you becoming disabled at any time owning the policy.
12. No taxation of Social Security Benefits — Social Security benefits can be subject to income taxation depending on where the policyowners retirement income procurs. Income from cash value policies are not subject to the policyowner’s Social Security income tax.
13. Avoids Probate — The death benefit is paid solely to the beneficiary written on this policy. Avoiding legal battles as well as the drainage of the account through lawyer fees.
14. Accurate Return Figures — There are no chances for a negative return in this account, therefore clearing the confusion of clients being shown average stock market returns reported by financial companies which are completely inaccurate in nature.

Wealth Building Tool

The life insurance aspect of these accounts is the main role of this account, so don’t mistake it as just and investment vehicle. There are fees and the cost of the insurance itself included in the premium, the feature to the life insurance called Cash Value is what makes it a tool for wealth accumulation.

You may think you need a ton of money to start one of these accounts but you don’t. This will all depend on your income, but if you are currently building a savings plan in your bank, you can safely put that into an IUL and allow it to grow. After understanding the concept of having a solid emergency fund of course.

If you’re looking into an IUL, have discernment for who you handle this business with and understand that it is a life insurance policy. Also, make sure that the policy stays in force until the insureds death (Age 120) to avoid a huge tax bill from the gain of the provision loan. Subscribe to my email list to learn more about this strategy.