How To Create Your Own Private Reserve Wealth Strategy

How To Create Your Own Private Reserve Wealth Strategy

Laurence Williams Highlighted in Broker World Magazine

Business owners have long been considered by most to be the lifeblood of the American economy. They are what drive our economic growth. Successful business owners really embody three traits:

  • Business owners value the importance of protecting their assets.
  • Business owners value the importance of mitigating tax exposure and paying unnecessary taxes.
  • Business owners understand and value the importance of having access and use to liquidity and capital.

The good news is, although not every one of us may be a business owner we all have access to these principles and strategies within our own portfolio to create our own private reserves of wealth. One just so happens to be properly structured cash-value life insurance.

Properly structured cash-value life insurance, when leveraged as your own private reserve strategy, can allow you the ability to make major purchases for big events in your life. It can also allow clients to have access to that cash if needed for unforeseen circumstances. Lastly, it allows clients to have access to position this as supplemental retirement income.

Now, one may ask, “What is needed for this strategy? Or is this a strategy for me?”

The first requirement is the need for life insurance. The second is that you must value the importance of financial protection. There are several benefits of owning a cash-value life insurance plan for your private reserve of wealth. The chart shows of the most common uses.

But what does it look like in action? We’re going to look at a client here by the name of Tom.

  • Tom is 35 years old.
  • He’s in great health.
  • He’s married with two young children.
  • Tom maxes out his contributions to his Roth IRA and 401(k) up to the four percent match.

Tom also understands that his 401(k) cannot be accessed until he is 59 1/2 and there could be times in his life that he may need access to capital right away. So, Tom decides to purchase a properly structured indexed universal life (IUL) policy.

A properly structured indexed universal life policy allows the contributions to grow on a tax deferred basis, while allowing clients to access that cash on a tax-free basis. If a client were to pass away prematurely, the beneficiaries will have access to the death benefit tax-free.

To view the full article, please click here: View Article in Broker World Magazine »

About Laurence Williams

Laurence Williams is a Field Support Representative at LifePro. He coaches hundreds of financial professionals on how to build effective financial strategies that achieve their clients' long term goals and helps them stay educated on the latest industry trends.

Disclaimer

This information is meant for educational purposes only.



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