Using Leverage to Maximize Your Retirement
When you purchased your home, did you pay cash for it? Why did you choose to get a mortgage? Most people purchase a mortgage because they prefer to live in a bigger, nicer home in a nicer neighborhood. Did you know you can do the same thing with your retirement?
There are three major risks that most people encounter when funding their retirement: Capital Risk, Market Risk, and Tax Risk.
Capital Risk is the risk of not having enough money to fund the retirement accounts it would take to maintain the lifestyle you would like to enjoy in the future. It is common to believe retirees will want to live on about 80% of the income they had while working. Most Americans are under saving to accomplish this goal and are at risk of working longer than desired or not having the lifestyle they dream of.
Market Risk is something we are all familiar with. If you were invested in March of 2020, you probably saw your investment values fall by 30% or more due to the uncertainty of COVID. If you don’t plan to retire for a long time, fluctuations like these shouldn’t be a huge concern. But in the last few years before retirement, sequence of returns risk is one of the scariest factors keeping seniors up at night.
Tax Risk involves not knowing what is going to happen to tax legislation in the future. Although tax rates are more favorable now, there is no reason to believe it will stay like this. Income taxes, capital gains taxes and estate taxes are all at risk of increasing to levels unseen in history as our country falls farther and farther into debt.
There is an opportunity out there that can allow you to use leverage to maximize your retirement income and minimize each of these risks. The benefits of using this plan are:
1. Opportunity for growth and to produce income in retirement.
2. Only requires a total of 5 annual contributions to participate. (Less Capital Risk)
3. Your cash grows tax deferred.
4. The growth of your cash is indexed to the market with no downside risk. (No Market Risk)
5. You can access your cash in a tax-favored basis. (No Tax Risk)
6. You will be able to leverage your future income with additional bank funding up to 3 to 1, all without a signature.
You can take advantage of all these things with no interest payments, no loan documents, no personal guarantees, and no credit checks. At this point, I know this may seem too good to be true. This is the benefit of using an indexed universal life policy with bank financing as part of your retirement plan.
Life insurance can be a great way for high income earners to get tax-free income in retirement. This can be called a wealthy person’s Roth IRA. We get the bank to finance up to 75% of the premium by attaching it to a life insurance product that is guaranteed to not lose value. These plans are stress tested for viability using historically great returns, high-inflation periods and during the depression era.
This opportunity is for higher-earning individual investors as well as companies looking to offer benefits to their most important and well-paid executives. If you’re already offering your key employees bonuses, this program can really help you grow that bonus exponentially by offering growth and income, downside protection and a large death benefit. Purchasing this plan for your employees can help ensure they stay part of your team for at least 5 more years to maximize the benefits of this program.
If you are serious about saving for retirement, give me a call today to schedule a short demonstration to see if you can afford to join this program. From where I sit, you may not be able to afford not to.
James A. Hopper, RFC
Money Concepts President
(317) 439-4320
jhopper@moneyconcepts.com
Independent Contractor of Money Concepts International, Inc.
Securities through Money Concepts Capital Corp.
Member FINRA/SIPC