We’ve all heard the expression, “Cash is king.” While that might have been true at one point, we find ourselves favoring a different monarchy. Cash isn’t king to us – liquidity is king. Liquidity liberates individuals and frees them to take advantage of financial opportunities as they arise, which is why liquidity terms are an important component of a financial vehicle.

For example, by having access to liquidity during a market pullback, individuals can purchase appreciating assets at a discount because they have access to those funds. Likewise, when done so within an IUL, we don’t disturb the cash value growth of the contract and the client is still earning uninterrupted compounded interest on the policy even though it is being used as a collateral source.

This is something I’ve been talking about more with both advisors and clients. A properly structured IUL is often praised as a supplemental tax-free retirement vehicle with life insurance and asset protection, and while this is true, those aren’t the only advantages it offers. IUL policies feature favorable liquidity terms and while there are other institutions clients can borrow from, loans from insurance companies using IUL cash value as collateral are generally more favorable.

With loans from IULs, there are no qualifications, no loan underwriting, no payment terms, and generally no added fees. Essentially, the IUL loan is ‘unstructured,’ allowing the client to pay the loan off on their own terms or instead accrue and let the death benefit pay off the outstanding loan balance upon death. Lastly, we would expect a long-term positive arbitrage between the borrowing cost from the insurance company and the indexed returns of the policy.

As mentioned earlier, we often position IUL as a supplemental tax-free retirement vehicle with life insurance and asset protection, but IUL’s additional liquidity advantages become even more relevant in the context of recent events. In June of 2001, 30-year mortgage rates peaked at 7.24% and as of this past week, we nearly matched the 22-year high as rates jumped to 7.23%.

With inflation driving up the cost of living and higher interest rates affecting large capital purchases, having access to liquidity can make a big impact on an individual’s financial freedom. This is why the implementation of a properly structured IUL with favorable liquidity and loan rates can be more beneficial than alternatives.

To illustrate this, I’ve included a list of the loan terms of our top IUL carriers as well as alternative bank loan options that may be available. Notice that not only are the IUL loan rates much lower than the loan terms, but they are also significantly more favorable.

Note: Bank loan rates using Bankrate.com and assumes a high credit score.

In conclusion, recent events emphasize the importance of having access to liquidity and IUL provides a great option for those looking to do so. If you’re interested in adding a properly structured IUL to your clients’ holistic financial plans, reach out to your FSR at (888) 543-3776.

Contact LifePro Today!

If you are looking for a partner who cares about your clients as much as you do, please reach out to LifePro Financial Services at 888-543-3776. We are a premier IMO located in San Diego, CA that has been in business since 1986 and was originally founded by William Zimmerman.

This material is intended for educational purposes only and is not intended to serve as the basis for any purchasing decision. Guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. The hypothetical example is shown for illustrative purposes only and is not guaranteed. The characters in this example are fictional only. Your actual experience will vary. Policy loans and withdrawals will reduce available cash values and death benefits and may cause the policy to lapse or affect any guarantees against lapse. Remember to consider your client's individual circumstances and objectives when discussing their specific situation. Additional premium payments may be required to keep the policy in force. In the event of a lapse, outstanding policy loans in excess of the unrecovered cost basis will be subject to ordinary income tax. Withdrawals are generally income tax-free unless the withdrawal amount exceeds the amount of premium paid. Tax laws are subject to change. Clients should consult their tax professionals. Investment advisory and financial planning services are offered through LifePro Asset Management, an SEC Registered Investment Advisor. Registration does not imply a certain level of skill or training. Investments involve risk.

In 1970, Stanford conducted a psychological study in which children were offered a marshmallow and given a choice between eating the marshmallow immediately or waiting 15 minutes to be rewarded with two marshmallows. Appropriately named “The Stanford Marshmallow Experiment,” this famed study on delayed gratification demonstrates that if you can stand the wait, two delayed rewards are better than a singular immediate one.

When it comes to retirement, there are a variety of strategies at your disposal. The real question is, would you choose an account that gives you one marshmallow now or two marshmallows later on? In this episode of Money Script Monday, Luke provides a story reflecting various retirement plans to demonstrate how taxed, tax-deferred, and tax-free account structures can drastically affect an individual’s retirement.

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Laurence Williams Highlighted in Broker World Magazine

Businesses serve as the lifeblood of our economy, driving innovation and progress. In the intricate landscape of business, cultivating and retaining top-level executives is pivotal for sustained growth and success. As a financial advisor, you’re well aware of the multifaceted challenges businesses face in attracting and keeping valuable talent. In this article we’ll delve into a strategic approach that combines the power of life insurance with executive retention, offering you a dynamic tool to enhance your client’s corporate structure.

For business owners, fostering an environment that attracts, retains, and empowers top executives is a cornerstone of success. Traditional benefits like 401k plans, healthcare, and remote work options are common incentives. However, the integration of indexed universal life insurance (IUL) introduces a novel dimension to the spectrum of executive benefits. Recent studies by the Life Insurance Marketing Research Association (LIMRA) reveal that 29 percent of Americans with life insurance felt underinsured, while a staggering 59 percent lacked any insurance coverage altogether. This indicates a growing awareness of the value of life insurance in today’s ever-evolving economic landscape. While conventional policies such as term insurance are familiar, our focus rests on the dynamic potential of IUL.

In retirement, everyone wants a predictable income stream and to know that their money will be consistent. Unfortunately, one can only do so much to work towards stability if their account faces exposure to stock market risk.

After spending so much of your life making sacrifices so you can have enough money to finance your retirement, it would be devastating to watch that fly out of the window due to stock market factors beyond your control.

But what if there was a way to avoid exposure to market risks altogether, allowing for more consistency and predictability in your retirement income stream? In this episode of Money Script Monday, Kevin juxtaposes retirement portfolios with differing levels of risk to demonstrate how market conditions impact the outcome of a retiree’s income.

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Advisory Services offered through LifePro Asset Management, LLC. The information presented here is not specific to any individual's personal circumstances. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials.

How often do you check reviews on a restaurant before making a reservation? What effect does someone else’s experience have on your decision to move forward with trusting that business with your money?

In any industry that involves customer interaction, the quality of the customers’ experiences with the business is extremely important to their success. After all, customer service and success boils down to forming and growing solid relationships built on trust.

In this episode of Money Script Monday, Allee covers three repeatable steps that business owners should incorporate into their process for building client relationships to grow their business.

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The human brain can process visual information so quickly and efficiency that it gathers 90% of all information visually. Think about the last time you received a collection of data or information. What did it look like? How effective was the visual presentation in furthering your understanding of the information in front of you?

It may be hard to communicate what a massive black-and-white table filled with rows and columns proves, but if a color-coded and detailed graph or chart shows the same information, it will make it easier and faster to get the point. Knowing what a difference visual aids make in furthering understanding, it’s only logical to utilize these same communication strategies when explaining financial concepts to a client.

In this episode of Money Script Monday, Kyle provides highly effective resources for clients that communicate how IUL is not just a product but a solution to potential financial problems from taxes and market volatility.

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If you won the lottery, what would you spend it on? Maybe you’d fulfill your childhood dream and get that shiny sports car you’ve always wanted. You could even buy a mansion for when you aren’t traveling the world since you have a flexible schedule now that you don’t need to work for an income.

For some, receiving an inheritance feels the same as winning the lottery and once that fortune falls into an heir’s hands, all of the fantasies they have about what they’d do with that money can suddenly become attainable. As much fun as it is to fantasize about the lifestyle that a large lump sum of money would allow for, the fun can end abruptly if there’s no financial plan in place to ensure that money goes a long way for a long time.

In this episode of Money Script Monday, Michael shares a hybrid leveraging strategy that can potentially increase the legacy that retirees are able to pass down to their heirs. With the greatest wealth transfer in history upon us, it’s critical for retirees to understand the financial strategies they can take advantage of so that their heirs could enjoy a bigger slice of the 84 trillion dollar cake that’s being passed down over the next 25 years.

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In breaking financial news, Fitch has downgraded their U.S. credit rating from AAA to AA+. The only other time that the U.S. has been cut from its highest AAA rating was by S&P in 2011, which attributed budget standoff issues and a prolonged fight over the government's borrowing limit as determining factors. Following this, the Government Accountability Office released a 2012 report that estimated that those standoffs raised the Treasury's borrowing costs by $1.3 billion that year.

Looking at the most recent rating adjustment from Fitch and their report of driving factors, current considerations are reminiscent of those from the S&P demotion as "repeated debt limit standoffs and last-minute resolutions" were driving factors of Fitch's rating score.

After Fitch's public announcement yesterday, mixed responses have flooded the finance world. While the Secretary of the Treasury, Janet Yellen, outright disagrees with what she calls an "arbitrary" and "outdated" rating system, others such as Treasury spokesperson, Lily Adams, claim that the demotion is indicative of the larger need for "swift bipartisan action" on Congress's behalf to avoid economic crisis.

As this news makes its way into your inboxes and onto your newsfeeds, we want to remind you that we are here to support you during these turbulent times. We invite you to reach out to your FSR at (888) 543-3776 who can help provide strategies to reduce the risks associated with higher future tax rates and stock market volatility as the U.S. continues to lead the charge in public debt as a percentage of GDP.

Contact LifePro Today!

If you are looking for a partner who cares about your clients as much as you do, please reach out to LifePro Financial Services at 888-543-3776. We are a premier IMO located in San Diego, CA that has been in business since 1986 and was originally founded by Bill Zimmerman.

Our focus is getting advisors in front of the right prospects through our proprietary digital marketing systems while offering industry best-case design and reporting, professional back-office support, and competitive compensation with incentives.

This material is intended for educational purposes only and is not intended to serve as the basis for any purchasing decision. Guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. The hypothetical example is shown for illustrative purposes only and is not guaranteed. The characters in this example are fictional only. Your actual experience will vary. Policy loans and withdrawals will reduce available cash values and death benefits and may cause the policy to lapse or affect any guarantees against lapse. Remember to consider your client's individual circumstances and objectives when discussing their specific situation. Additional premium payments may be required to keep the policy in force. In the event of a lapse, outstanding policy loans in excess of the unrecovered cost basis will be subject to ordinary income tax. Withdrawals are generally income tax-free unless the withdrawal amount exceeds the amount of premium paid. Tax laws are subject to change. Clients should consult their tax professionals. Investment advisory and financial planning services are offered through LifePro Asset Management, an SEC Registered Investment Advisor. Registration does not imply a certain level of skill or training. Investments involve risk.

If you’re a standup comedian, you know how important timing is. But when it comes to finances, you don’t need experience making a room full of people laugh to fully understand the crucial role timing plays in making financial decisions.

If you’ve ever bought anything else that requires financial planning, such as a car, home, or even a boat, then you’ve likely considered the timing of that purchase as a factor in that decision. If so, then you understand that the underlying interest rate environment is the basis for pricing products at a given time and, therefore, a key factor of the best window of opportunity for major purchases.

In this episode of Money Script Monday, Brian demonstrates the impact that interest rate environments can have on the outcome of an annuity purchase to offer more guidance around economic conditions to consider when adding an annuity to your financial plan.

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Advisory Services offered through LifePro Asset Management, LLC. The information presented here is not specific to any individual's personal circumstances. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials.

Financing allows people to accomplish more by using less and is a very common financial strategy used for making large capital purchases such as cars and homes. Outside of these familiar applications of financing though, there is another application that could be a huge addition to your complete and holistic financial plan.

In this episode of Money Script Monday, Adam demonstrates how financing allows for larger capital purchases and explains how financing can be used to accomplish more income in retirement while using less of your own money.

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